Brits spend a full year's salary on Christmas during their working life
Brits will spend a total of £20,072 on Christmas over their working life, according to figures compiled by NEST (National Employment Savings Trust) and MoneySupermarket. That's almost equivalent to an entire year's gross salary for the average earner in the UK.
MoneySupermarket found that individuals plan to spend on average £445 each this year on Christmas, up from £437 the previous year. The research shows that younger people tend to spend the least, while spending peaks between 35 and 54. Over a working life of 50 years, it works out to almost a full year's salary for the average earner.
However, a new NEST poll found that, when asked what was most essential to a good Christmas, spending time with family topped the list (68 per cent), suggesting the best part of Christmas is free.
Work parties are the least favourite part of Christmas, with nearly half of people (48 per cent) saying they would happily avoid them. Other least favourite things include Brussels sprouts, with a third (32 per cent) saying they would willingly give them up, and Christmas stockings, which a fifth (21 per cent) would ditch.
The poll also found that the cost of Christmas is a worry for most people, with 77 per cent being ‘concerned', a third being ‘very' or ‘extremely concerned' about how much Christmas costs them and half (52 per cent) agreeing they spend too much during the festive season.
Women are more concerned than men about how much they will have to spend this year. 37 per cent of women say they're worried about how much Christmas will cost them compared to just 29 per cent of men.
NEST has come up with five tips to help people manage the costs of Christmas, including dodging multiple work do's, streamlining stockings, recycling wrapping, sharing the Christmas cooking and choosing Christmas trees with future Christmases in mind.
Commenting, Helen Dean, Managing Director of Scheme Development at NEST, said: ‘We're all looking forward to Christmas, this year and for many years to come. But it's shocking that it will cost many of us the equivalent of a full year's salary over our working lives. No wonder spending at this time of year is such a concern for so many families.
‘Shaving just a little bit off the annual festive bill and focusing on enjoying time with family could mean more peace of mind now and big savings over the long term.
‘Visiting friends and family and giving gifts is something to look forward to, whatever age we are. Watching the pennies each year could help us all put aside money for the future so we can make the most of lots more Christmases to come.'
Clare Francis, financial expert at MoneySupermarket said: ‘Christmas shopping is a significant area of expenditure, particularly for parents with children under 18. Therefore it is important to take steps now and every year, to manage your finances in the run up to the big day - and beyond.
‘A recent survey of MoneySupermarket visitors found, only 37 per cent will fund Christmas using disposable income this year with an encouraging 34 per cent planning to use their savings. Using a credit or store card was the next most popular option for one in ten.
‘A credit card offering interest free purchases could be a good option for those looking for flexibility and an efficient way to spread the cost of Christmas. However, anyone taking up this option must ensure they are able to pay off the debt into the New Year. A cashback may also be good options for those looking to be rewarded for their Christmas spend.
‘Finally, using vouchers and searching online for the best deals on gifts and other items will also help your money go further.'
NEST's top tips for a savvy festive season
Here are five quick ways to save
A little cash to help you pave
The way for all that Christmas cheer
To be enjoyed for years and years
So even when you're seventy-three
You can still put gifts beneath the tree!
1. Share the Christmas cooking. Spending time with family is the best thing about Christmas, according to 68 per cent of the population. So why not turn family bonding into a budgeting bonus by getting everyone to contribute their favourite Christmas dish?
Potential savings: Christmas dinner can add up to almost £50 for the average family, according to recent research from the supermarket Morrisons. Sharing this with Christmas guests could mean savings of £2,500 over a working lifetime.
2. Work do's and don'ts. Christmas parties are everywhere and the costs can quickly add up. Given that work parties are people's least favourite part of Christmas, it might pay to be more selective about the functions you attend and avoid some of the stress as well as the cost.
Potential savings: According to the charity pound-a-day.org, an average of £28.31 is spent on getting ready for just one night out, not to mention the cost of drinks, cabs home and late night food. Based on an average cost of £50 per night out, cutting out just two parties from your Christmas calendar could save you around £5,000 over the long term.
3. Streamline your stocking fillers. Just 16 per cent of people think stockings are essential to a good Christmas yet many parents spend more than £50 on stocking fillers. Pad out stockings with homemade gifts like cookies and chocolates, or even healthier snacks like fruit and nuts. That way you can cut down on expensive gadgets and useless knick-knacks.
Potential savings: Halving the cost of stocking fillers could mean long term savings of around £1,250.
4. Recycle your wrapping paper. We waste nearly 100 square kilometres of wrapping paper each Christmas, according to CB Environmental. That's enough to cover an area the size of Guernsey. There are lots of ways to reduce this waste but one of the simplest is to open your presents carefully and keep your wrapping paper for the next year. Re-using gift bags is also an easy way to recycle.
Potential savings: Families are expected to spend around £25 on wrapping paper, cards and crackers this year. By going homemade or reusing paper, gift bags and cards, savings could add up to £1,250.
5. Choose a tree with the future in mind. More than half the population think a Christmas tree is essential to a good Christmas. So rather than going without, think about ways to reduce the cost of your tree. Using (and re-using) an artificial Christmas tree or decorating a living tree outside your house is cost effective and could be more environmentally friendly than buying a real tree every year. Alternatively, buy a living tree and keep it in a pot in the garden - that way you can bring it indoors every year!
Potential savings: The average cost of a real Christmas tree is around £40 but it's possible to spend hundreds. Cutting down on the cost of your tree could save nearly £2,000 over your working life.
6. Tot up your total savings = a maximum of £12,000.