The short answer: pick one total figure for the whole of Christmas, split it across gifts, food and extras, and write down every planned cost before you start buying. Then divide what you still need by the weeks left until Christmas, and track what you actually spend as you go.
Step 1: Choose one total
Start with a single number for everything: presents, the food shop, decorations, travel and nights out. One total makes it much easier to see when a plan is creeping up, because every extra has to fit inside it.
Step 2: Split it into categories
Most Christmas spending falls into three groups: gifts, food and hosting, and festive extras. The extras are where budgets usually slip, so list them properly:
- Decorations and the tree
- Cards, stamps and postage
- Wrapping paper, tape and tags
- Outfits and Christmas jumpers
- Travel to see family
- Work parties, nights out and events
- Secret Santa and office collections
- Advent calendars
- A small buffer for surprises
A worked example
| Category | Planned |
|---|---|
| Gifts | £420 |
| Food and hosting | £230 |
| Travel to family | £70 |
| Decorations and tree | £60 |
| Events and nights out | £40 |
| Cards and postage | £35 |
| Wrapping | £15 |
| Buffer | £30 |
| Total | £900 |
Made-up example for a small family Christmas.
Step 3: Work out what to put aside each week
Take the amount you still need and divide it by the weeks left. With £900 to find and 13 weeks to go, that's about £69 a week. Starting in September rather than December makes the weekly figure much smaller.
Step 4: Track what you actually spend
Write down each purchase as you make it, next to what you planned. If one category runs over, you can see straight away and trim another before it adds up. Count things bought on a card or with pay-later services in the month you buy them, so your total stays honest.
Frequently asked questions
When should I start planning for Christmas?
Any time is fine, but starting in the autumn gives you more weeks to spread the cost across, which makes each week's amount smaller.
What do people most often forget?
Postage, wrapping, travel to family, work events and the extra food shop between Christmas and New Year are common ones. Listing them at the start stops them surprising you later.
Keep reading
- How to make a Christmas gift list spreadsheet: plan presents person by person.
- Sinking funds: how to plan for irregular costs: spread the cost of Christmas across the year.
- How to set savings goals you can actually track: save a set amount by December.
Plan it in a template
Our Christmas Budget Planner brings it all together: a gift list with a budget per person, food and hosting, festive extras, a savings countdown to Christmas Day, and a dashboard showing planned vs spent.
Important: This article is general information to help you organise your money. It is not financial advice and doesn't take your personal circumstances into account. Any figures are made-up examples. For free, impartial guidance, visit MoneyHelper. If you're worried about debt, contact StepChange or Citizens Advice.