Though many of us love Christmas-time, it can also pressure us to spend beyond our means and lead to financial hardship. Let’s try our best to avoid that this year… the question is just how?
Recent Statistics
- 55% of UK adults expect to spend most of their 2024 Christmas budget on gifts for others (The Institute of Practitioners in Advertising (IPA))
- The IPA found that 56% of 18-24 year olds and 25-34 year olds hope to receive gifts that are practical or essential rather than luxury items this year (IPA)
- VoucherCodes’ Shopping for Christmas Report predicts a 4% rise in Christmas spending this year, with consumers expected to spend an extra £3.39 billion compared to last year, and £14.03 billion more than they would ten years ago (VoucherCodes)
- They also predict a 1.4% rise in sales volume this Christmas period compared to last, showing it isn’t just inflation that’s resulting in our increased spending, it’s also that we are buying more items (Voucher Codes)
- UK individuals are forecast to spend £1,328.88 over the six-week Christmas period in addition to their usual purchases (an extra £50.19 than last year) (Voucher Codes)
- 43% of consumers are planning to buy fewer gifts this Christmas compare to last, and 42% plan to buyer cheaper gifts (Voucher Codes)
- More people are expected to fund this year’s Christmas out of their salary with less reliance on Buy Now Pay Later financing than last year, but more are using things like credit cards and payday loans, which can be seen from the table below: (VoucherCodes)
As is clear from these statistics then, Christmas continues to be a time of year when we spend a lot of money. Spending more money than usual is fine of course when we have planned for it, accounted for it in our budget, and when we can afford to do so with our own money. However, for many people at Christmas, this pressure and culture of spend, spend, spending, can be damaging and can lead to us getting into financial trouble.
Things to Watch out For this Christmas
Scams! – we should stay alert to scams all year round, but Christmas is a particular time we may be more likely to get caught out. Click here to read about some of the scams you should be on the lookout for
Funding Christmas by borrowing – as soon as you start paying for things with money you don’t have, you are taking on a risk. This is particularly true at Christmas, as many of us may feel pressured to take out loans, turn to our credit card, use Buy Now Pay Later, or borrow from family members, all to pay for things that we don’t really need. It’s tricky navigating gift giving when you don’t have lots of money spare, but this is where doing things like Secret Santa, or having an open and honest conversation with your family or friends about money on the run-up to Christmas, can really make a difference
Advertisements – pre-holiday deals like Black Friday can be a great way of getting the things we need for cheaper. However, these deals often make us feel like they’re ‘too good to miss,’ convincing us to buy things we wouldn’t have bought otherwise, racking up our spending. Additionally, advertisements can link in with social pressures, making us feel like we need to ‘keep up appearances’ and buy our loved ones the latest gadgets