Christmas Gift Spending: How to Set a Realistic Per-Person Limit

Christmas Gift Spending: How to Set a Realistic Per-Person Limit

A realistic Christmas gift budget usually depends on the  total amount you save per month. You can calculate your total monthly savings by deducting the outgoings from your income.   

Many UK households use £10-£20 for office colleagues as a Secret Santa gift, £20-£30 for family and extended family members and friends and higher amounts for close family members like mom and dad. Every gift that you plan for every person should fall within your budget. 

How much should you spend on Christmas gift for child?  

According to Mumsnet, “one can spend around £150-£420 on a Christmas gift for a child”.  The expense depends on what a child needs, age, resources, and parents’ budget. According to a new survey, families plan to spend “£693 on presents alone!” Decide the budget for the child’s gift according to their needs, not luxuries. 

How to calculate your total Christmas gift budget?  

Here is how you can determine your total Christmas gift budget: 

• Step 1- Work out how much you can spend on gifts 

Analyse your monthly income, the total number of people you want to give presents to, and their requirements; accordingly, calculate the per-person average gift amount. Multiply that amount by the number of persons. You will get the budget. 

For example, if you plan to gift 25 people and the average gifting amount per person is £30, your total gift budget should be £750. However, for this, you must have at least £800 in savings. 

• Step 2- Categorise gifts according to designations 

The individuals that you decide to provide presents to may be categorised according to their designations. For example, you can categorise them into colleagues, children, pensioners, friends, and family members. Accordingly, set a budget for each member by checking the average gift cost of each person category. 

• Step 3-  Check whether the total fits the budget 

After categorising and calculating the average gift cost per person, determine whether the total amount fits within your budget. If not, you must adjust your budget by reducing the gift cost or swapping the chosen gift with an affordable one.  

However, if you don’t want to compromise on that, Christmas loans for people on a tight budget might help you. It is for individuals who want to bridge gifting needs without compromising on emotions. However, borrow only the needful and what you can afford. 

• Step 4- Include the miscellaneous costs 

Don’t forget to include the costs of wrapping papers, postage, and delivery. 

How much should you spend on Christmas gifts for different people? 

Now you must be wondering how much you should spend on family Christmas presents. How much should you spend on your partner this Christmas?  You can break down the Christmas considerations for Children, Partners, siblings, friends, colleagues and Secret Santa. 

The following table lists the suggested budget for Christmas gifts for different people: 

Note :  The figures are according to the last year’s Christmas expenses survey by You.Gov. 

How to stick to the Christmas gift spending limit?  

If you want to stick to the Christmas budget, then calculate every expense.  Keep a list of the gifts that you are yet to purchase and the total amount it will cost. Keep that in mind and don’t spend over that in any situation. 

Pay by cash if you are habitual to using credit cards excessively. Here are some ways to stick to a Christmas budget: 

• Track purchases: Analyse the list and check how much you have spent on the gifts given the budget. Do so every 2-3 days during Christmas gift purchases 

• Keep a running total: Check how much you have yet to spend on the gifts and always keep a total in your mind. 

• Set a limit before shopping: When you decide to walk up to the supermarket, keep a firm digit in your mind. Decide how much you need to spend on gifts. Spend that much only and for the related purpose. However, if an emergency breaks your spending plans, don’t panic. Explore the quick cash options that you may have with good or bad credit history. 

For the latter one, check Christmas loans for bad credit in the UK marketplace. It may help you finance the emergencies without affecting your gifting budget. You may get the loan at competitive interest rates but with fixed instalments within 24 hours (in most cases). 

• Track the sales period: Analyse the popular Black Friday sales dates and Cyber Monday to buy maximum gifts on discount. It will help you save some money and use the gift budget toward other major aspects. However, keep your goals clear. Don’t buy anything else just because it is on sale. Follow purpose by purpose to achieve your Christmas goals. 

• Try homemade gifts: If you spent slightly high for a gift but buying next could exceed the gift budget, don’t buy a new gift. Instead, try DIY. Check whether you can draw, paint or create a new gift from scratch. You can try baking cookies, crocheting cushions, handmade purse, etc. You can decide the right thing according to the person you want to gift it to. 

How to save money on Christmas gifts without disappointing people? 

Here are some strategies that you may try to save money on Christmas presents or buy affordable gifts without disappointing people: 

• Personalise gift experience: Analyse each person’s likes and create something from scratch for main family and friends. 

• Try group presents: You can host a potluck or Secret Santa to reduce the budget for gifts and buy the best one given the limit. 

• Check thrift and charity shops: Check whether you can get the best bargain, or a copy of the original item, or the original item at affordable rates 

• Keep packaging simple: Don’t overspend on lovely gift wrappers. Instead, focus on an environmentally friendly approach and keep packaging simple. 

Bottom line  

These are some ways to set a realistic per-person limit for Christmas presents. Analyse the per-person requirements and things that will make them happy. You don’t need to compromise on budget.  However, you should not exceed it either. 

Otherwise, it may become problematic for you.  Analyse whether you can try DIY or group the costs of each gift according to categories like friends, family, and colleagues. It will help you set the right budget for Christmas gifts for each person. 

John Milton

John Milton is an experienced financial writer and personal loan expert with years of experience identifying the right category for people. He has been Chief Financial Expert at LoanChester in the UK and provides insights on the big deals of the lending institution. He is known for transforming the loan policies as per the unique needs of different borrowers. First, he focuses on what the borrowers require according to their favourable and adverse financial stances, and then he focuses on making a variety of personal loans affordable. John writes well-researched content on personal loans and also guides borrowers regarding their unique financial conditions. John holds a Ph.D. degree in banking and finance.