Brits set for a home-made Christmas
Brits are getting creative with their Christmas spending this year with three fifths saying they will be more resourceful in order to save money or make it go further, according to new data from NS&I's Savings Survey.
61% of the population will turn the festive period into a ‘resourceful Christmas' to protect themselves against New Year financial blues. And the saving race is now on, as these practical and inventive Britons believe they could cut their Christmas spending by an average of £108.61 by being smarter with their money. This would mean trimming predicted Christmas spend from their pocket by approximately 20%.
Tim Mack, Savings Spokesman, NS&I, says: "This is not about people dreaming of a ‘tight Christmas' but about each of us doing a bit more planning and being a little bit more enterprising over the next four weeks."
Within this inventive group of Santa's Savers:
A third (34%) are planning to make presents, decorations and cards themselves
Two thirds (68%) have agreed a spending limit with family and friends this season
Two thirds (65%) have agreed with their family to buy fewer gifts this year
More than half (55%) have cut down on daily expenditure, such as buying lunch or taking taxis, to save money for Christmas
A fifth (22%) of the population plan to use money earned from their hobbies or interests to supplement the cost of Christmas this year
13% won't be buying any presents, decorations or cards at all
The younger generations are proving the most financially savvy, with 16-24 year olds being the most resourceful of all age groups
Mack continues: "By planning and being more resourceful, our research shows that people could save around 20% of their Christmas spend. Shopping smarter or setting a spending limit can ensure you still have a merry Christmas without a financial hangover."
With so many Britons showing signs of being Santa's Savers, it is good news that friends and family are also happy to receive presents in the same spirit. Almost a third (31%) say they don't care what presents they receive this Christmas, as seeing family and friends is a sufficient Christmas celebration. A quarter of people (25%) say they respect and appreciate receiving presents that are a result of more resourceful spending attitudes by family and friends. Just 1% would resent friends or family for not being more generous during the festive season.
Unfortunately, the good habits of Santa's Savers aren't reaching everyone. For those who are still spending this Christmas, just a fifth of people (20%) say they have a specific savings pot set aside, down from 29% two years ago. This means that more than two fifths (43%) are relying on finding extra money in their current account for their Christmas wallets. This figure is up from a third (34%) two years ago, potentially leaving more people with a financial hangover in the New Year.
Tim Mack, Savings Spokesman, NS&I: "With all the additional costs incurred during the festive period, setting a plan and budget in the run-up to Christmas is especially important. There are simple steps that people can start taking today to protect themselves against January financial blues."
NS&I provides top tips on how to beat the financial hangover:
The cost of Christmas parties, drinks and dinners all adds up, but any chocolate coins you might get on Christmas Day won't help you deal with this potential festive debt. Try to plan in advance which events you will attend during December or set yourself a budget for nights out. There's no need to bankrupt yourself before Christmas has even arrived!
Rather than buying individual gifts, consider a gift exchange or ‘secret santa' between friends/colleagues by drawing names and buying for one person only.
Be disciplined; create a list, in advance of shopping of who you are buying for, and what you are buying, and review if you need to buy for every person on that list.
Give yourself plenty of time; the pressure of shopping at the last minute may very well drive up your shopping bill.
Save money by taking advantage of free price comparison tools online. Check money saving websites and discounts which are often available through workplaces or through membership of clubs/societies. Save on delivery costs by getting things delivered at the same time.
Do your financial homework before setting yourself realistic New Year's Resolutions. Review your average monthly outgoings and think about how you could cut back on unnecessary spending. New NS&I data shows that nearly a third of us (29%) spend more than we ideally would like to every month. What you don't spend, you can save and either put towards something you really need or build up a savings safety cushion, should you need some extra money in an emergency.