Britons have a cheerful creative Christmas

The British population is using its hobbies and talents to save money this festive season, with many planning to have a 'creative Christmas' according to the latest NS&I (National Savings and Investments) Quarterly Savings Survey.

Nearly two-fifths (37%) of those who plan to be more resourceful intend to make cards, presents and decorations while many others are finding other practical ways to cut costs, including switching from champagne to sparkling wine (34%). In total, nearly two-thirds (65%) plan to take a more resourceful approach to celebrating this year in order to save money. Nearly a fifth (16%) of Britons plan to spend less this year as they have overspent in the previous years. While just over two-fifths (41%) who have more limited funds this year pledge to change their spending in order to cut back on Christmas costs.

Those that are taking a more creative approach to celebrating are not just saving money; in fact family and friends welcome the personal touch. Almost three-quarters (71%) of the population said that they felt handmade cards and presents are more thoughtful than store-bought presents, while a similar number (75%) say that people should be more creative on Christmas cards and presents as a way of reducing spending during the festive season.

Pleasing friends and relatives is very important to most people at this time of year, as in the true spirit of Christmas people put others before themselves. Over a third (36%) said travelling to see friends and family was their priority and over two-fifths (43%) said it was very important to send Christmas cards. Just over a fifth (22%) said decorating their house was very important, while less than one in ten (8%) said that treating themselves was their priority.

Dax Harkins, senior savings strategist from NS&I said: "Christmas is the season of giving and people want to give generously to loved ones. With the recent financial uncertainty having a knock-on effect on Christmas budgets, it is clear that people need to be more imaginative this Christmas. Those celebrating the season need to ensure that they are planning and spending within their budget and should try not to overspend, dip into overdrafts or go into debt."

Smarter seasonal shopping

The British population is also taking a more resourceful approach to shopping. A large majority of those looking to be more resourceful (90%) say that they will look for cheaper brands and promotional offers when doing the Christmas shopping this year. Nearly two-fifths (37%) of the population are starting their Christmas shopping early to ensure that they can afford the best presents at the best prices.

In fact, three-fifths (60%) of those cutting back vowed to be more selective with the number of festive parties that they attend in order to keep costs down, while more than two-fifths (41%) will continue to attend festive gatherings but will make sure they use public transport to travel to and from their party destinations.

Christmas still costs

As well as those who are cutting spending following previous years' excesses (16%) and those who have less money to spend (41%), more than one in ten (13%) have one eye on the year ahead and sensibly want to save some of the money they may otherwise blow on festive fun. However, despite the intended cut backs this Christmas, Britons are still planning to spend on average more than £500 each during the festive period. Perhaps reflecting the difficult economic times, this is lower than previous Christmas spending, where the average amount the population spent was around £580 per person.

There are still those with some cash to flash this season, with more than one in ten (11%) saying they will spend over £1,000, although on the other end of the scale over a third (34%) plan to spend less than £250. Worryingly, almost two-fifths of the population (38%) are not planning ahead and setting themselves a proper budget this Christmas, as they don't want to limit the amount they spend.

Watching cash may still be a struggle

The results also show that even for those that are setting a budget just under a third of the population (32%) usually overspend during the Christmas period due to unforeseen costs. Over a third of women (35%) are likely to spend more, compared to men where the figure sits at just over a quarter (27%).

The survey reveals that splashing out on gifts for family and friends is the most common reason for blowing budgets (63%). Nearly half (46%) admit spur of the moment socialising causes unforeseen added costs, while nearly half of the Britons surveyed (45%) are unable to resist the temptation of picking up bargains in sales. Men are more susceptible to the pull of the party, it seems, as more than half of men (52%) are more likely to find it difficult to turn down last minute socialising, compared with just over two-fifths of women (41%).

Proving that people's nearest and dearest really are their priority, over a third (38%) of Britons also overspend on splashing out on reciprocating unexpected presents and travelling to visit or phone (37%) family and friends.