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How the crunch stole Christmas

18th December 2008 Print
Over two-thirds of children in the UK (68%), equivalent to 5.4m kids, are aware that there is a ‘credit crunch' on, and understand what it means in the run up to Christmas, according to research by investment, pensions and insurance group LV=.

The survey among children aged from 8 to 18 found that over four in ten children (44%), equivalent to 3.5m kids in the UK, expect to receive fewer or cheaper presents from their parents, family and friends this Christmas, because of the economic downturn.
Almost three quarters of younger children aged between 8 and 10 (73%) still believe in Father Christmas, and one quarter of these youngsters (26%) expect Santa's sack to be lighter this year as the credit crunch bites.

‘Tis the season to be thoughtful

Recognising the current financial difficulties, almost one third of children (32%) have been thoughtful enough to ask Father Christmas, their parents and friends/family for less this Christmas.

This could be related to the fact that two in five children (40%), equivalent to 3.2m kids, have noticed changes in their parents' spending habits in the last year, with the following cutbacks:

over one quarter (27%) said their parents are spending less at the supermarket
15% said their parents don't go out as much
13% said their parents are spending less money on clothes for themselves
11% said they are spending less money on holidays
one in ten (10%) said parents are spending less money on their children
one in twenty (5%) said their parents are spending less money on their hobbies

And it seems that the pressures parents are facing are not just financial. Almost one in ten children (8%) said they had noticed that their parents were spending more time at work recently and less time with the family.

Mike Rogers, LV= Group Chief Executive, said: "Children are surprisingly clued up about the credit crunch and the impact it is having on Christmas and on family life generally. And many younger children who still believe in Father Christmas expect even him to be feeling the pinch this year.

"Once again this illustrates the importance of families saving as much as they can, not only towards Christmas but for the future generally. Putting by just a little and often can make a big difference in the long run and help everyone to look after what they love in life."

Lending a helping hand

The Credit Crunch has also brought out kids' caring and sharing side, as one fifth of children aged between 14 and 18 (19%) have part-time jobs and are helping their parents out financially. A further three in ten (29%) are thinking of taking on a part-time job to help ease their parents' financial worries.

According to the LV= survey, one in four children (25%) have actually asked to receive less pocket money from their parents. 18% of these realise that their parents are struggling financially and 9% recognise that reducing their pocket money would help the family finances as a whole.

In contrast, three quarters of children (75%) said they had not suggested that their pocket money should be reduced, because they didn't believe that the credit crisis was affecting their family.

Mike Rogers said: "It is humbling to see that so many children are doing their bit for the family and trying to help out with part-time jobs and by asking for less pocket money. Some children are not seeing the effects of the credit crunch though, so it is important for all parents to try to educate their children around financial issues, particularly the value of saving and being prepared for the future."