According to research carried out on behalf of Aviva Home Insurance, most family’s are planning to spend €1,463 on Christmas this year.

Presents are the biggest expense, amounting to €620.

Consumers are also estimated to spend €340 on food and drink, €228 on socialising and €210 on decorations, clothes, crackers, and other ad hoc expenses.

The economy is showing strong growth but one in five households are planning to cut back on gifts this year. Another 18 percent are going to eat and drink less, while almost a quarter say that they will spend less on socialising and going to events like pantomimes.

This is in-step with recent consumer sentiment figures which have suggested that improvements in the economy have not translated into increased spending. It will be interesting to see if families stick to their budgets, or if the festive period will have them spending more than they intend to.

Check out Newstalk's rundown of this year's most popular toys.