Brits return to family values in 2008’s ‘Frugal Festivities’

Cash-strapped Brits are actually welcoming a frugal festive season, claiming a less commercial yuletide will force us to rediscover the true spirit of Christmas with our families.

Six in ten (63%) believe 2008 will be a more meaningful Christmas, minus the usual excess, while four in five (80%) say this year will be less about splashing cash, and spending time with loved ones instead.

A ‘Frugal Festivities' study compiled by Norwich Union, part of Aviva, reveals that over half (52%) of us believe the credit crunch will force us to rediscover the true meaning of Christmas, with many families introducing a ‘kids-only' rule for Santa (33%).

Two in five (43%) are slashing all excess spending and going back to budget basics - crackers (28%) and work Secret Santas (29%) top the list of Christmas casualties, followed by decorations (26%), wrapping paper (18%), and stocking fillers (23%).

And the 2008 ‘Frugal Festivities' will see us:

Socialising at home instead of bars and restaurants (46%)
Making our own mince pies and puddings rather than forking out for supermarket versions (23%)
Sending emails or visiting friends rather than sending cards (10%)
Swapping the Christmas Eve trolley dash for church carol services (7%)

Brits hope scaling back will slash, on average, £115 from their usual yuletide bill. Joanna Gibbs (33), from Norwich, is giving her two children an active role in the family's festive budget cuts.

She says: "While we'd normally take the kids to see a department store Santa, we're getting them excited this year by having them make our home decorations.

"My husband and I are cutting back on our usual nights out and, although money is tighter this year, we are actually really looking forward to having a proper family Christmas together."

One in ten (10%) will make rather than buy presents, and others are slashing their shopping lists - no gifts this year for neighbours (23%), colleagues (23%), friends (21%), pets (19%) or the kids' teacher (18%).

Instead, Brits will focus on their nearest and dearest, spending, on average, £179.00 on their children, £107.83 on partners, and £28.64 on best friends.

For some though, it will be a present-free zone. Numbers not buying gifts for their partner are up 9% from 2007, and up 14% for those not treating best friends.

More than one in three (38%) have no choice but to cut their budget, but still Brits expect to rack up an average bill of £404.24 by December 25.

And, with two-thirds (34%) turning to debt - via credit and store cards, loans from family or overdrafts - financial experts are warning of a cold wind that could last until Christmas 2009.

Louise Colley, head of protection marketing for Norwich Union and mother of seventeen-month-old twins says: "It's good to see that we're refusing to let the credit crunch entirely steal our Christmases and planning more traditional, less expensive celebrations this year. As a mother of young twins I'm very aware of how costly festivities can be, but I'll be making sure I celebrate by spending time with my family - after all that's what Christmas should be about.

"The Christmas and New Year period is a great time to take stock and get your finances in order. Anyone enjoying a frugal Christmas will have a head-start on those who are using credit to pay for their festivities. Without a plan to pay off festive debt as quickly as possible, many may find themselves still paying the price by the time Christmas comes again."

The ‘Frugal Festivities' study also reveals that:

One third (34%) will use their savings to cover the Christmas bill

Cardiff residents will spend the most money this Christmas with a bill of £516.34, compared to Belfast residents who will spend £355.47 and a national average of £404.24

Glaswegians expect to cut the most off their Christmas bill with an average planning to save £127 off their usual spend compared to a national average of £115

Christmas spending is hardest hit in Belfast, Southampton, Glasgow, Cardiff and Manchester with the highest number of people in these cities being forced to cut their budgets due to financial pressures

Sheffield residents are the most generous bunch in Britain - unlike the rest of the country they are the least likely to cut back on presents for pets (8% vs 19% national average) and neighbours (14% vs 23%)

Women are happier about the return to ‘Frugal Festivities' than men (67% vs 55%)

44% of those living in Liverpool will be turning to debt to fund Christmas - ten per cent more than the national average