New research shows that 15 million UK adults will be saving money by spending less this Christmas*, with one in ten Brits concerned that this Christmas will leave them in financial strife, according to GoCompare Money.
The research, which asked more than 2000 people how they were feeling about money this Christmas, also revealed that just under a third (31%) say they are going to have to be very careful with Christmas spending, and 6% will be spending money they haven’t got.
A third (34%) say they have no financial problems this year as Christmas approaches, but just under a quarter (22%) of people are worried about their finances with more than one in ten (12%) saying they are worried about taking on more debt to fund the celebrations.
According to the figures, the average Yuletide spend on gifts, socialising and food will be £602.50, with 18-24 years old spending the most at an average of £712.10 and the 55-64 age group spending a bit less with just over £530.This is a hard time for saving money.
When it comes to how people will spend, nearly a half of respondents (45%) will fund Christmas with their income, one in five (21%) has put money aside to spend and worryingly 13% will be putting some of their purchases on a credit card.
Richard Jones from GoCompare Money said of the findings: “As consumers recover from a worldwide pandemic, the research indicates that people are taking more care to ensure they do not overspend by planning on spending less, being more cautious and not parting with the same amount as usual.
Christmas is supposed to be the most wonderful time of the year, but there is always a lot of pressure to splash the cash which can turn it to a season of stress rather than goodwill. With gifts to buy, friends to socialise with and all that tasty festive food and drink to indulge in – it’s very tempting to get carried away.”
He added, “Most people love to bag a bargain and save money and Christmas is actually the perfect time to do it, especially when finances have been a little unstable during the COVID-19 pandemic. What is clear from our findings is that Christmas is going to be very different for many people this year, as the stresses and strains of the past two years affect wage packets and disposable incomes.”
Our own financial expert Jasmine Birtles says, “If their research is right then I’m pleased to hear that Brits will be spending less this Christmas. Every year I plead with people not to overspend at Christmas and give themselves a horrible debt hangover in January, and every year I see that we spend more than last year!
“I really hope that this year at least, we will buck the trend. We talk about Christmas being about peace, love and goodwill to all men but in practice it’s often about debt, despair and domestic violence. At least if we can reign-in the spending this year, many of us will find that our Christmas is as good as we’re willing to make it and that we can often have a happier time by expressing Christmas qualities (peace, love and goodwill) rather than spending £100s.”
We offer a handy guide on saving money all year round here.