Brits to receive half a billion pound gift this Christmas

Britons are expecting to collectively receive £587million in gift money this Christmas reveals new research by direct bank first direct.

The survey of 1,200 adults reveals that almost one in five (19%) people expect to receive money as a gift this Christmas, with an average gift amount of £61 each. This money will be gratefully received as first direct data shows that over a third (35%) of customers go into their overdrafts in December whilst almost a quarter (24%) takes money from their savings accounts in the same month.

Cash is king this Christmas; the majority of people (62%) usually receive their Christmas gift money as hard cash. Cheques also remain popular; one in five people (20%) expect to receive a Christmas cheque this year. A further 9% will receive money as a gift card or voucher while 7% will have the money paid directly into their current accounts.

How Christmas gift money is given

1 Cash (62%)
2 Cheque (20%)
3 Gift card / voucher (9%)
4 Paid directly into current account (7%)
5 Pre-paid card (2%)

More than two fifths (43%) will treat themselves this December and spend their Christmas gift money on luxury items such as holidays or jewellery. However, many will also be more prudent with this additional cash inflow; over a third (36%) will use their Christmas gift money to pay for everyday items such as groceries, a quarter (25%) will put it into savings or investments and one in ten (10%) will use it to pay off debt. In the season of goodwill a further 3% will donate some of their Christmas money to charity.

Richard Brown, Senior Savings Product Manager at first direct commented: "December can be an expensive time of a year and this influx of cash around the festive season will be welcome for many. However, rather than spending it all at once, it seems the money is likely to be used for more sensible options such as being put away into savings, to supplement spending and to pay off debts. It's easy to be tempted to splurge when we get an unexpected cash gift so the fact that more than half are planning to use their extra money sensibly is a positive sign.

"You don't need a huge amount to save or invest so lucky Christmas money recipients should try to find a healthy balance between rewarding themselves for the past year and setting some of their cash aside for the future. One way to ensure your Christmas money will work harder for you in the long term is to use it to open a new savings account with some of it, helping you to kick start the New Year with a healthy savings routine."

How Britons will use their Christmas money this year

1 Spend on luxury items such as holiday/jewellery (43%)
2 Spend on everyday items such as groceries (36%)
3 Put into savings / investments (25%)
4 Use to pay off debt e.g. credit card (10%)
5 Donate to charity (3%)

Women (22%) are far more likely than men (13%) to receive money as a Christmas gift

Those aged 16-24 are most likely to receive money as a gift at Christmas (46%) while those aged over 55 are least likely (12%)

People in the North West are most likely to receive money as a gift (22%) while the South Easterners are least likely (14%).

For more information, visit firstdirect.com.