Here’s how much cash YOU need to set aside by December as experts reveal the true cost of Christmas 2026

THE countdown to Christmas has officially begun, with just 106 days left until the big day – and for many households, the worry about how to pay for it all is starting too. New research has revealed the staggering true cost of Christmas 2026, with money experts urging Brits to start budgeting now to avoid a financial hangover in the New Year. The festive bill is made up of everything from food and drink to travel, gifts and even pet care According to figures from MoneySuperMarket, UK households will spend an average of £1,681.12 on Christmas this year, equivalent to more than half of the average monthly UK household income. It comes as searches for “how to afford Christmas” have rocketed by 261% year on year, showing just how worried Brits are about covering the costs. Sign up for the Money newsletter Thank you! Where does the money go? The festive bill is made up of everything from food and drink to travel, gifts and even pet care, with the costs quickly adding up long before December 25. Grocery shopping alone is expected to set families back £144.43, while festive tipples will cost £76.85 and getting around over the break will add another £80.58. Gifts remain the biggest single expense, with shoppers expected to spend £187.16 on presents for loved ones. But Brits aren’t just buying for others, with many also planning to treat themselves, setting aside £65.48 for self-gifting. Charitable giving and tipping also make up a chunk of the festive spend, with households budgeting £54.28 for donations and £52.35 for tips. The cost of hosting Christmas dinner is also significant, with turkey costing an average of £53.06 and meals and drinks adding up to £87.78. Most read in Money Combined with groceries and festive drinks, food and booze alone will set households back more than £360 this year. Energy bills are also expected to bite, with families forking out £109.50 just to keep their homes warm and lit over the festive period. It’s not just the big-ticket items that add up either, with smaller costs often catching shoppers off guard. Batteries will cost £42.34, wrapping paper and gift tags will set families back £49.26, and cards and postage will add £48.24 to the bill. That means an extra £134.78 is being spent on Christmas essentials that rarely get factored into festive budgets. Tech-related costs are also quietly inflating the Christmas bill, with gadget insurance costing £48.74, data plans £54.22 and extended warranties £44.48. How can I get ahead? Kara Gammell, personal finance expert at MoneySuperMarket, is urging Brits to start planning now if they want to avoid debt and financial stress over Christmas. She said: “While Christmas might still feel like a distant date on the calendar, by starting early, you can spread the cost, protect your credit score and avoid the pre-Christmas panic that can leave budgets spiralling long after the festive season has ended.” Kara said shoppers should use the countdown as a chance to create a clear budget. She said: “Use the 100-day countdown as a chance to set aside time to create a clear budget ahead of the festive season. “This can help you stay in control of your spending when the festivities roll around, while highlighting areas where you may need to cut back.” She added that setting a budget for gifts means shoppers can go shopping with a figure in mind, helping them avoid panic buying or overspending. Kara said: “By setting a clear budget for what you want to spend on gifts for friends and family, you can go shopping with that figure in mind, helping you avoid panic buying or spending more than you can afford.” Shoppers are also being urged to hunt for bargains now rather than waiting until December. Kara said: “In September you can often find some great end-of-summer bargains on things like clothes and homeware.” She suggested keeping a gift list on your phone’s notes app so you can snap up deals as soon as you spot them. Kara said: “Keeping a list of who you need to buy for on your notes app, along with a budget for each person means you can snap up a gift when you spot a good deal, rather than waiting until the last minute when you have less time to bargain hunt.” She also suggested turning saving into a game by creating a “Christmas budget bingo” card. Kara said: “Ticking off little wins such as, ‘found a gift under £10’, ‘used a voucher’, or ‘skipped a takeaway’ is a great way to celebrate the small wins that can quickly add up.” Shoppers have also been told to check for VAT-free alternatives when doing their festive food shop. Kara said: “Small changes in where you shop within the store could help cut costs. “Some foods, such as dried fruit or plain nuts sold for baking, may be VAT-free, while similar products marketed as snacks can attract VAT.” Loyalty schemes and cashback rewards could also help ease the pressure on household budgets this Christmas. Kara said: “If you’re planning your Christmas shopping early, it’s worth making the most of any rewards and loyalty schemes available to you.” She added that supermarket loyalty cards can unlock personalised discounts and money-off vouchers that make a real difference. Finally, Kara said automating savings could be one of the simplest ways to build up a Christmas fund without even noticing. She said: “Setting up a standing order to transfer money into a savings account on payday ensures that you’re prioritising your financial goals before discretionary spending kicks in.” She added that some banks offer round-up features that automatically save spare change from everyday purchases, and switching accounts could even net shoppers a welcome bonus. Kara said: “If your current bank doesn’t offer this feature, consider switching to one that does – some providers offer cash bonuses of as much as £240 for new customers.” Comment now