More than a third of adults have already started budgeting for Christmas

A poll of 2,000 adults who celebrate Christmas revealed 36 per cent have financial plans in place – including for presents, family outings and outfits for seasonal parties.

Nearly half (46 per cent) are saving supermarket loyalty points for the big shop and 33 per cent are using cashback apps to make the most of their spending.

Others are shopping in sales (38 per cent) and buying things in bulk (29 per cent) to make sure they have extra money for Christmas 2025.

In fact, a third (32 per cent) began thinking about preparing for Christmas as early as January 2025, putting aside an average of £63 a month to fund their festivities.

Nearly half of those (45 per cent) like to do this because it spreads the cost across throughout the year and 44 per cent just like to feel prepared.

While 79 per cent think forward planning is the only way to make it through the festive season without breaking the bank.

The research found 36 per cent are already preparing for winter bills, by setting aside additional cash in the summer to help pay for energy as the weather gets colder.

Many are also tightening control of their household bills, with 58 per cent of those with a smart meter using their in-home display to track their energy use and help with budgeting.

Victoria Bacon, Director at Smart Energy GB, which commissioned the research, said “The research clearly shows that, for many, a perfect Christmas is worth planning for.

"As well as helping to ensure a smooth Christmas day, planning ahead and budgeting are great ways to help you manage your finances across the year.

"A smart meter can really help with this as it ensures you receive accurate, not estimated bills.

"For those on prepay, you get additional benefits such as the ability to top up from home and more easily check your remaining credit.”

The research also found those who celebrate Christmas are expecting to attend an average of three celebrations and are anticipating buying 12 presents for friends and family.

But one in five have even started stocking up on gifts, while 13 per cent have already snapped up discounted seasonal greetings cards and wrapping paper.

And a tenth have started buying new decorations for December.

The research, carried out via OnePoll, also revealed 36 per cent will be cutting back on other areas of their life to ensure they have enough money to fund Christmas – with 43 per cent claiming it’s worth doing this to have a perfect yuletide.

Personal finance expert Lynn Beattie, AKA Mrs Mummypenny, who is working with Smart Energy GB, said: “Spreading the cost of Christmas throughout the year is a great way to minimise spending in December and help you enjoy the festive season.

“There are lots of things you can be doing in the run up, such as keeping a monthly tally of your outgoings, shopping in the sales and looking for bargains.”

Mrs Mummypenny’s top tips to save for Christmas:

1. Save a little bit every week: Placing a small amount into a savings account every week can really add up over time. Many banks offer a round-up function where daily spending is rounded up to the nearest pound, with that amount going to a separate savings pot.
2. Start planning - now: If you can identify everything you’d like to do this Christmas, you can work out roughly how much you need to save to cover the entire cost.
3. Get ahead of your bills using your smart meter: The screen that comes with your smart meter allows you to see your energy usage, make adjustments and save money. If you have a smart prepayment meter, you can top up your credit online or over the phone from the comfort of your own sofa instead of going to the shops.
4. Use loyalty cards and vouchers to pay for Christmas presents: Many places offer loyalty schemes, such as supermarkets, where you can collect points and vouchers and use them to buy presents.
5. Get cash back on all online purchases: Set up an account with the cash back site and go there first to find your chosen retailer. Then click through as normal to your chosen retailer or bill provider, triggering the cookies and getting you the cash back if you make a purchase.
6. Sell your clutter: I urge you to spend ten minutes looking around your house and finding ten items that you no longer use or want that you can sell.