Make your money grow on your Christmas tree this year

We share some investment tips on how you can make your money stretch further at Christmas.

Article updated: 16 December 2019 3:00pm Author: Joe Healey


Christmas shopping is often a stressful task and we all have the same concerns; can we find the perfect gift, will there be any parking spaces left at the shopping centre, will that delivery arrive on time? The list goes on and topping that list of concerns for most of us is the expense that comes with what is the most wonderful time of the year. Not only are we splashing out on presents, carparks and delivery fees but also the Christmas parties, dinners and drinks, and the new Christmas outfits too.

Our research has found people in the UK are planning to spend on average over £1,000 (£1,007) over the Christmas period, on items such as tinsel, travel, train sets and the all-important turkey.* To help you have yourself a merry little Christmas, we have sprinkled a bit of Christmas magic on some numbers that yule love!

From advent calendars to chocolate logs, what is Christmas without chocolate? Whether you’re giving chocolate as a gift, or indulging in front of the fireplace this December, investing in chocolate could help fund your chocolate consumption over the festive period! Our research shows if you’d invested a lump sum of £250 in Hotel Chocolat at the start of December last year, you’d now have a sweet return of £80.85.

With your returns, you could purchase

Money can be a little bit tight in December, so if you prefer to drip-feed your investment with £50 a month (totalling £600 over the year), your return on investment would have been £189.15, meaning you could have purchased more luxurious chocolate goods with your returns.

Unfortunately for chocolate lovers, we do need something a little more substantial than chocolate to keep us going in the cold months. Investing in Tesco could afford investors an abundance of seasonal treats; investing a lump sum of £250 in Tesco stock at the start of December last year would now give you a £55.39 return on investment – enough to tick off most of your Christmas shopping list; from the turkey to the dessert, and a Christmas favourite - sprouts!

Although food is a festive fundamental, you may wish to explore Christmas traditions abroad. If you fancy a Christmas market getaway, investing in easyJet could pay for your flight. Investing a lump sum of £250 in December 2018 could afford you a trip to Montpellier, France*** as you’ll enjoy a return of £55.39. With a return flight costing £44.23, this leaves some money in your pocket to spend at the Hivernales Christmas Market.

A drip-feed approach would leave you with £212.42 to splurge, meaning you could enjoy the Christmas illuminations on the Champs-Élysées, the ice rink at the Grand Palais and the Christmas markets around Notre-Dame in Paris. With an easyJet return ticket from London Stansted costing £124.853****, you’d have some spending money too! Alternatively, if you’d rather stay at home for Christmas but enjoy New Year elsewhere, a flight departing on 30th December from London Luton to Belfast could be for you; priced at £134.85 you can put the rest of your returns in the ‘booze fund’!

Investing doesn’t have to be boring. In fact it’s a great way of setting goals whether that be for targets such as enjoying Christmas using your returns, or life milestone goals such as saving for a house or retirement. Realising the value of letting your money do the work for you is crucial and allows powers such as compounding to take control. We generally recommend investors to drip feed their investments especially in light of current market uncertainty. Of course, lump sum investing can generate higher returns in the short term should a stock experience sudden growth, however drip feeding allows pound cost averaging to take effect, taking a sensible advantage of both up and downswings whilst gradually adding exposure helping to smooth out volatility.


All information given including prices, yields and our opinion is correct at the time of publication. Our opinions on investments can change at any time and for our latest view please go to To understand how our Investment research team arrive at their views please read our Investment Research Policy.

Joe Healey

Investment Research Analyst

Following his completion of the graduate scheme, Joe is an Investment Research Analyst covering equities. He holds a BA Hons Business Management degree and is currently studying towards CFA Level II after passing CFA Level I in June 2019.

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