As the most expensive time of year looms, new research from Manchester Credit Union (MCU) reveals that Manchester residents are well-prepared, with healthy Christmas savings already set aside.
Analysis of 500[1] local savers revealed an average Christmas fund of £441 at the end of September, with most starting saving as early as January. The findings show that, even as living costs rise, many Mancunians are taking control of their festive finances.
The average UK household spends around £600[2] on Christmas, with nearly one in four relying on credit to cover costs—highlighting how planning ahead can make a real difference.
Ryan Young, Chief Finance Officer at Manchester Credit Union, said: “Christmas can be one of the most financially stressful times of the year, and it’s easy to fall into debt. It’s encouraging to see so many people building their Christmas savings gradually – putting away a little and often – and fantastic to see that most will have enough saved to cover the cost of Christmas by the start of December. Small habits like this really do make a big difference.”
Other MCU data collected during September[3] highlights the impact of money worries overall. Sixty-nine per cent of members say finances keep them awake at night and almost half don’t have clear financial goals to improve their situation. Paying for Christmas, managing existing debt, and paying household bills are people’s top priorities for the next six months, with many saying that cutting back, or taking a second job will be necessary.
Ryan added: “These figures show just how much financial pressures shape family decisions and the extent of their ongoing impact.”
For those who haven’t put any money aside and are feeling underprepared for Christmas, Ryan has some practical steps to get ahead.
- Start saving, even now – “Even saving a few pounds a week right now could cover the cost of a few gifts by Christmas. Open a dedicated Christmas savings account or an envelope and add whatever you can, as soon as possible”.
- Earn as you learn – “MCU members can earn £5 for every financial learning module they complete in the Money Hive app, up to a total of £25. Not only does it support better decision making which can ease financial stress, it means you can earn extra cash too.”
- Prioritise and budget – “Make a simple list of essential gifts and festive costs, then set spending limits. Knowing exactly what you need reduces stress and prevents overspending.”
- Get savvy – “If you’ve got unused or unwanted items, sell them on online second-hand platforms like Vinted and eBay to create some extra cash, or re-gift them.”
- Use your points –“Take advantage of cashback, discounts and loyalty points you’ve been earning throughout the year, all of them can make your money go further.”
- Be creative – “Homemade gift vouchers like ‘I’ll do the washing up for a month’ help to show you care, without breaking the bank.”
Manchester Credit Union is a not-for-profit organisation that exists solely for the benefit of its members in Manchester, Bury, Rochdale, Stockport, Tameside, Trafford, and High Peak. Any profit generated is returned as a dividend on savings or used to improve member services
Manchester Credit Union is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the PRA.
[1] Based on data from MCU’s 500 Christmas Saver account holders in September 2025.
[2] According to data from IPA in 2024: https://ipa.co.uk/knowledge/publications-reports/the-2024-christmas-consumer
[3] Based on data gathered through MCU’s app during September, sample of 358.