If Christmas feels more expensive than ever this year, that’s because it is, especially for students already operating on tight budgets and unreliable loan instalments. While inflation is no longer rising at the dizzying pace seen over the last two years, prices themselves remain stubbornly high.

Food, clothing, travel, and basic essentials cost far more today than they did pre-pandemic, and crucially, incomes haven’t kept up. With real purchasing power essentially flat, even a “normal” Christmas suddenly feels like a financial stretch. A big part of the problem is the widening gap between what things cost and what people earn. Inflation may be slowing, but prices haven’t fallen.

Over the past three years at UEA my maintenance loan has barely increased and certainly not in line with inflation. Part-time wages haven’t kept pace either. So, now in the festive months, with all the social expectations, gifting pressure, and hidden costs, the numbers simply don’t add up.

On the other side of the equation are the retailers. This year, shops are facing higher operating costs: a rise in the National Living Wage, increased employer National Insurance contributions, and generally higher running costs across energy, packaging, and supply chains.

These pressures squeeze profit margins, so retailers pass those costs onto consumers instead of absorbing them. I have found that whilst shopping in the infamous lanes in Norwich, smaller independent shops struggling with particularly thin margins and falling footfall, have raised prices the most. For students relying on affordable local shops, this adds yet another layer of strain.

Suppliers and retailers also know something else: people will spend at Christmas, even when they can’t really afford to. There’s a deep cultural belief that Christmas should feel “special”, and many of us, myself included, try to recreate the magic by overspending.

Companies understand this mindset and so they market product with exclusivity, limited-edition items and festive deals. Firms then price goods accordingly, confident that customers will buy regardless of the cost. It’s the perfect storm of psychological pressure and economic reality.

But one of the biggest reasons Christmas burns a hole in your wallet is simply that we’re buying for more people. As social circles widen; flatmates, coursemates, societies, partners, extended friendship groups, the list of who we “should” buy for grows longer. Add to that the gift-guilt factor (the sense that if someone buys you something, you must match it), and many students end up spending beyond their means.

To make matters worse there are also the hidden and often forgotten about costs: going home for the holidays, winter heating bills, nights out, Secret Santas, decorations, wrapping, postage, the list goes on.

In a year where general living costs in the UK remain high, these extra December expenses hit harder than ever. What used to be small seasonal add-ons now feel like significant financial burdens.

For students, the impact is particularly sharp. Maintenance loans rarely cover rent and living costs fully, and many already juggle part-time jobs, overdrafts, and basic expenses like prescriptions, travel, the dentist or even a haircut.

Add December peer pressure, the expectation to show up, join in, buy gifts, and look the part and it’s no surprise that some turn to credit, Buy Now Pay Later, or simply overspend money they don’t have.

This year, Christmas isn’t just expensive, it’s a reminder of how fragile many students’ finances truly are.

Image Credit: Meg Thubron