36% of people plan to cut gift spending this Christmas

People expect to spend an average of £103 per person on Christmas gifts for their closest loved ones this year with ,ore than a third (36%) expect their gift spending to be lower than last year, including 12% who expect it to be much lower. In contrast, 15% expect to spend more, while almost half (49%) anticipate spending about the same as last Christmas, according to research by Nationwide.

Those aged 45-54 expect to spend an average of £119 per loved one, followed by 25-34-year-olds (£116) and 35-44-year-olds (£115). By comparison, over-55s expect to spend £90 per loved one, while 18-24-year-olds anticipate spending £87.

This year, Nationwide predicts that customers will make 12.8 million transactions on Black Friday, representing a 7.6% increase compared with 2025. Across the Black Friday period, customers are expected to make almost 44 million transactions, 8.6% higher than last year.

More than a third expect to cut gift spending, and according to the findings, many households are continuing to take a careful approach to festive spending.

Those aged 45-54 are the most likely to cut back, with 42% expecting lower gift spending than last year. Meanwhile, almost a quarter (24%) of 25-34-year-olds expect to increase their Christmas gift budgets.

Christmas budgeting – one in seven (14%) say they are worried about being able to afford Christmas this year, while 19% say they will actively look for ways to reduce costs and a quarter (24%) say they will spend carefully while maintaining traditions.

To help manage Christmas spending this year, people are planning to set a strict Christmas budget (26%), use loyalty points or rewards (24%), and cut back on personal spending (23%)
Buy more items when they are on sale (21%) spread purchases across several months (20%), and start spending earlier than in previous years (17%)

Women are more likely than men to set a Christmas budget (30% vs 22%) and use loyalty rewards (26% vs 21%) as part of their festive spending plans.

Clothing tops Christmas shopping lists – when asked which categories would account for the largest share of their Christmas gift spending this year, the most common answers were: Clothing and accessories (28%), Food and drink gifts (26%), Gift vouchers (22%), Toys (21%) and Electronics (18%).

There are notable differences across generations. Electronics are particularly popular among 35-44-year-olds (27%), compared with just 10% of over-55s. Food and drink gifts are most likely to feature among over-55s (28%).

Black Friday continues to generate significant spending. However, the consumer research suggests enthusiasm for the sales is far from universal. More than two in five people (42%) do not plan to buy anything during this year’s Black Friday or Cyber Monday sales, rising to 62% among over-55s.

Only 13% say they buy the majority of their Christmas presents during the Black Friday and Cyber Monday sales period. Instead, the most common time to buy the bulk of presents is early November, or around two paycheques before Christmas (25%), followed by early December (17%). A further 14% buy presents throughout the year whenever they spot something they like or find a good deal.

Opinion is also split on whether Black Friday offers the best value, with 32% believing it has the best deals, while a similar proportion (31%) say no sales event offers the best deals. Just 5% believe Cyber Monday provides the best bargains.

Christmas gifts remain the most common purchase, with 35% intending to buy presents for family or friends. However, the sales are about more than festive gifting alone, with 22% planning to buy items they personally want or need and 20% intending to purchase household essentials or larger items for their home.

Younger consumers are particularly likely to use the sales for themselves, with 35% of 18-24-year-olds planning to buy something they want or need. Meanwhile, 33% of 25-34-year-olds plan to buy household essentials or bigger purchases for their home.

The research reveals how couples are navigating Christmas spending together. Nearly one in five surveyed (19%) say they would typically use money from a joint account to buy a present. Joint accounts are even more commonly used for family gifts, with 29% using them to buy gifts for family members and 26% using them for children’s presents.

Among people with a partner, the most common approach is to keep gifts a surprise (24%), followed by buying a physical present (23%) and setting a budget for gifts (21%).

Younger couples are particularly financially creative in their approach. Around one in five 25-34-year-olds with a partner say they buy a stocking instead of a main gift (20%), give homemade or personalised gifts (19%), pool money and choose gifts together (18%), or buy an experience such as an event or a trip (17%).

Mark Nalder, Payments Director at Nationwide, said “Christmas remains one of the biggest spending moments of the year, but our research shows many households are planning ahead, starting their shopping now two paydays ahead and taking a careful approach to managing costs. From setting budgets to using loyalty rewards, people are looking for practical ways to make their money go further.

“Black Friday remains a huge shopping moment, with around 12.8 million transactions expected on the day, up 8% on last year, and almost 44 million across the wider Black Friday period. Showing that the day remains an important shopping moment, even though many people are questioning whether it always offers the best value.”