Consumers will spend an average of €1,200 on Christmas shopping this year, while households with children will spend almost €1,600.
New research from the Competition and Consumer Protection Commission shows more than two-thirds plan to use savings to pay for presents, food and decorations.
One in four say they will borrow money to fund the festive season.
CCPC director of communications Grainne Griffin said using savings for Christmas is wise.
"Almost 70 per cent of consumers are planning on using savings, so that's really positive. Having a short-term savings account that you put a small bit aside regularly, but you can dip into it for the expected expenses like Christmas or the unexpected expenses like the broken washing machine... that's just a really positive sign of financial resilience."