Kids and TV: Britain's festive focus
Many people celebrating Christmas are willing to cut-back on presents and luxuries to save money, but research from the Money Advice Service shows two areas where people simply won't skimp: kids and TV.
Hardly any (2%) UK adults who celebrate Christmas are willing to cut back on children's activities this year; and only a few will scrimp to bring the household budget down to save money to fund Christmas: just 4% are willing to cancel their TV subscription; only 2% would cancel their mobile phone tariff to save money.
The research, commissioned as part of the Service's Have a Savvy Christmas campaign, highlights how people plan to pay for Christmas, and reveals the steps they are willing to take to save cash and stretch their money to fund festivities. The campaign includes a range of tips and tools online at moneadviceservice.org.uk/savvychristmas.
Cutting back
Many people celebrating Christmas are willing to cut-back on presents and luxuries to save money: almost a third (31%) are willing to cut-back on luxuries to recoup extra cash for Christmas; 45% are willing to buy cheaper gifts; over a third (34%) are willing to buy fewer gifts
Extra pocket money
Whilst many are willing to cut-back and others are finding innovative ways to make extra pocket money to fund festivities, half (50%) of respondents said they wouldn't consider doing anything to earn extra spending money for Christmas this year.
Among those who are willing to find extra cash:
34% are willing to sell unwanted goods online to make extra cash;
16% are willing to sell possessions at a car-boot sale to make extra cash; and
12% are willing to take an additional job to pay for Christmas this year
Very few of us (2%) are willing to rent out our spare room or parking space, but a few more (3%) would be willing to start a dog-walking business.
Paying off debts
The majority of those planning to celebrate also plan to use cash (72%) more than credit cards (26%) to pay for Christmas this year, and among those who plan to take out a loan/debt, more than half (51%) intend to pay off all of their Christmas debts ‘immediately' in 2013.
Planning for Christmas
To help everyone plan their seasonal spending, the Money Advice Service has a range of free, impartial tools on its website at moneyadviceservice.org.uk/savvychristmas:
The Christmas Cut-back Calculator will show you where you can make quick cash savings to boost your budget
The Christmas Money Planner will help you plan your festive budget - from food and gifts to travel and treats
The Money Stretcher will show you how you can make the cash you have last until you have more funds
The Budget Planner will keep track of your whole household spending, so you know what's coming in / going out
Commenting on the research, Jane Symonds, Head of Service Delivery at the Money Advice Service, says: "I'm not surprised so many people are carefully considering how to make the most of their money this Christmas. Counting the cost can be stressful. If you are feeling the pinch and worried about the pressure to spend, let the Money Advice Service help. This year, make time to try our tools and tips to see how much cash you can save with savvy cut-backs and simple budgeting to make your money stretch as far as possible".
10 top tips to have a savvy Christmas
1. Fix your budget. Make sure you think of everything you plan to buy. Now, go back through your list - do you really need it or are there cheaper alternatives? Be honest. Try discount shops for wrapping paper or swap to own-brand goods to squeeze the most out of your budget.
2. Write a list. Estimate the cost of each item - from food to gifts, travel and social occasions. Stick to your list. Sounds simple, but it's easy to get carried away when Christmas shops are twinkling to entice you to buy. Paying by cash only when possible can often help you stick within your budget.
3. Plan ahead. Plan what to buy and when. Some things are best paid for early to get the best deals - such as postage stamps or travel tickets. Others are best left to the last minute, such as stocking fillers. And plan your food and drink - the old saying ‘waste not want not' is just as relevant today as in the past. With some clever planning you can make the most of your money and stretch your budget further.
4. Shop smartly. Compare prices on the high street and online, they often differ. Price comparison websites can be useful but always use more than one to get a full picture of the cost. If you are shopping online, remember to save postage & packing costs by consolidating purchases.
5. Cutback and free up some spare cash. Try our online Cutback Calculator to see how making little changes to your regular expenses really adds up. You might be surprised how much making a packed-lunch instead of buying lunch adds up over just a few weeks.
6. Get creative. Gifts can dominate your budget, especially if you have kids. Homemade, pre-loved or vintage gifts are often cheaper and more personal. Fix your budget and set yourself a challenge to see how far it will stretch.
7. Take care with Christmas credit. You may be offered store card credit to ‘help' you with the cost of Christmas. Be sure you understand the terms of any borrowing including the APR. Know how you will pay the money back.
8. Save on car and travel costs. We often need to get around during the festive holidays. And the cost of petrol can bring up the cost of some longer trips. if you're clever about it, there are a lot of things you can do to save money.
9. Get the most out of the sales. Boxing Day bargains can be brilliant, but the bills can haunt you. Be savvy: use them to save money in the new-year, eg birthdays and anniversaries, and even gifts for Christmas 2014!
10. Set a money goal for 2014. Work out your weekly/monthly income and spending. And use our online money health check to set yourself a money goal, eg reduce a debt, save for something special or start a pension.