Yes, many people are spending less or cutting back for Christmas 2025 due to cost-of-living pressures, with millions planning reduced spending on gifts, dining out, and activities, though overall UK festive spend might slightly rise due to inflation; while younger demographics and some shoppers plan to spend more, significant numbers of older adults and families are tightening their belts and using discounts, showing a divided consumer picture.
Are people spending less this Christmas in the UK?
Planned festive spending now averages £596 per household, down from £774 last year. The number of people planning to spend over £1,000 has plummeted from 51% in 2024 to just 15% this year, showing a dramatic shift in consumer behaviour. Despite the cutbacks, financial stress is on the rise.
Overall, 41% of Americans plan to spend less for the holidays this year, 6 points higher than a year ago. Among those spending less, 46% blame the high cost of goods, a 10-point increase from the 2024 survey.
High-income consumers are trading down, Gen Z is spending less, and low-income shoppers are still struggling, according to many consumer companies that shared their latest quarterly results in recent weeks. Those trends may not bode well for the big-box and mall retailers that have yet to report their earnings.
How much does the average British person spend on Christmas?
The figures might surprise you. According to research by Finder, Brits spent an average of £923 per person during the 2024 Christmas period, including gifts, food, travel, and socialising. With inflation continuing to bite in 2025, that figure is likely to hit £1,000 or more this year.
Why Americans Are Spending Less on Holidays This Year
What is a realistic budget for Christmas?
Before you start buying gifts, it's important to set a budget. A common rule of thumb is that you should spend about 1-2% of your yearly income on gifts. But the key is to set a budget that fits your financial situation and priorities, so you can enjoy the holiday season without worrying about money.
How much do parents spend on their child at Christmas in the UK?
For parents buying presents for their children, nearly half (45%) are spending up to £100 per child and around half (49%) are spending more. Just 6% say they would typically spend less than £30 per child, with 15% spending between £31-50.
Though the economy occasionally sputtered in the wake of the pandemic, it has certainly been resilient — and now, in 2025, the U.S. is not currently in a recession, according to a traditional definition. In fact, the current state of the U.S. economy is still quite stable, according to most measures.
Household spending has slumped for the first time since 2020 after repeated tax rises from Labour hammered confidence. Consumer spending fell by 0.2pc in 2025, according to Barclays, as families cut back on basics including the weekly grocery shop. The metric grew by 1.6pc last year and 4.1pc in 2023.
The "5 Things for Christmas Rule" (or "Five Gift Rule") is a popular gift-giving guideline that limits each recipient to five thoughtful presents, typically structured as: something they Want, something they Need, something to Wear, something to Read, and something special/to Share (or Do). This method encourages quality over quantity, focusing on meaningful items that cover different aspects of a person's life rather than endless toys or clutter.
WASHINGTON, D.C. — Christmas remains a widely observed holiday in the U.S., with 88% of Americans saying they celebrate it, essentially unchanged from 90% last year and only modestly below the 96% recorded in 2005.
We found that festive financial pressures push many off-track, leading to unexpected debt and an impact on long-term savings. Our study shows that while many are disciplined with their money, a substantial portion of the population is entering the festive season without any plan on how they will pay for it.
Christmas can be difficult for anyone, at any point in their life. You might be struggling this year for the first time. Or you may have found Christmas difficult in the past, and you're dreading it again this year. You may also enjoy Christmas, but not be able to celebrate it how you'd like to.
What is the average spend per person for Christmas?
According to the National Retail Federation (NRF), Americans are expected to spend an average of $890.45 per person on holiday items which is just shy of the all-time high reached in 2021. On average, consumers plan to spend $627.93 on gifts for family, friends and coworkers.
By 2050, China is projected to be the world's largest economy by total GDP, followed by the United States and India, with major shifts as emerging markets like Indonesia, Brazil, and Mexico rise significantly, though Singapore and Luxembourg may lead in GDP per capita (average wealth per person).
The following 44 countries were still listed as least developed countries by the UN as of December 2024: Afghanistan, Angola, Bangladesh, Benin, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of the Congo, Djibouti, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, ...
While industry insiders are generally cautious, few expect a crash. Morgan Stanley notes “continued equity gains in 2026” with modest growth, as a lot of good news is already priced in. Fidelity's 2026 outlook is that it “could be another positive year” for the market — but investors shouldn't ignore risks.
What are the essential food items to stockpile for an economic collapse? Essential food items to stockpile include non- perishable goods such as rice, beans, canned vegetables and fruits, dried pasta, oats, powdered milk, peanut butter, and preserved meats like canned tuna or chicken.
The 5 Gift Rule for Christmas is a popular, simplified approach to gift-giving, limiting each person to five presents based on categories: Something they want, something they need, something to wear, something to read, and something to do/experience, with variations like "something to share" or "something to use". This tradition helps reduce holiday stress, clutter, and overspending by encouraging more thoughtful, purposeful, and experience-focused gifts rather than excessive materialism, promoting gratitude and mindfulness.
How much should a dad pay for his child in the UK?
In the UK, a father's child maintenance payment depends on his gross weekly income, with percentages applied: 12% for one child, 16% for two, and 19% for three or more (Basic Rate for £200-£800 income). Higher earners pay Basic Plus rates (additional percentages on income over £800), while lower earners may pay flat rates (£7) or reduced rates; the official GOV.UK child maintenance calculator is the best way to determine the exact amount, considering income, number of children, and other factors like other children living with the paying parent or shared care.
How many presents does an average child get at Christmas?
There is no magic number but the general consensus seems to be between three toys or gifts up to, potentiall around five. There will be many factors that contribute to this decisions; how many children you have, what presents other family members may buy, how old your children are and, of course, budget.
