The average UK family is expected to spend £1,681 on Christmas this year, marking an increase of over £100 compared to two years ago. This figure comes from research by MoneySuperMarket, which attributes the rise in costs to inflation, which reached 3.1 per cent in August. As the cost of living continues to climb, more people are seeking advice on how to afford the festive season. Google searches for “how to afford Christmas” have surged by 261 per cent compared to the same time last year, showing a growing concern about managing holiday expenses. Gifts make up about 15 per cent of the total Christmas budget, with an average of £252 spent on presents. Other major expenses include groceries (£144) and energy bills (£109), which are necessary to keep homes warm and well-lit during the colder months. Additional costs involve eating out (£88), travel (£80), work parties (£55), and new contracts or mobile data plans (£55). Two years ago, the average Christmas cost was £1,576, and with inflation, this has risen further by £105. Kara Gammell, a personal finance expert at MoneySuperMarket, advises families to plan ahead to avoid debt and financial stress. She recommends starting a “three-month bargain challenge” to control extra spending before Christmas, using loyalty cards for better deals, and automating savings to set aside money directly from paycheques. Gammell also suggests setting up a standing order to transfer money into a savings account on payday, ensuring financial goals are prioritized over discretionary spending. Some bank accounts offer features that automatically round up purchases to the nearest pound and save the spare change, while new customers can sometimes receive cash bonuses of up to £240. The best easy access savings accounts currently offer up to 5 per cent interest. Recent studies show that more than a third of Brits regularly face a cash shortfall before their next payday, highlighting ongoing financial pressures. Experts from the Food and Drink Federation have warned that inflation in food and non-alcoholic drinks is expected to reach 4 per cent by Christmas and could climb to 6.4 per cent by mid-2027. For those needing extra money around the holidays, seasonal jobs are becoming a popular option, as retailers often hire part-time or temporary workers in the run-up to Christmas.