New research reveals Brits spend 60% more than a ‘normal’ month over the festive period
- A typical UK household spends just over £2,500 in a month1
- This figure is expected to rise by £1,565 during the Christmas month.
- Highest proportion of this additional expenditure is on Travelling/ Christmas breaks (£320), followed by Gifts (£246) and £240 on socialising/ nights out.
- Half (50%) will use money they already have in their current account to pay for Christmas, while one in five (20%) will dip into savings pots to pay for the celebrations.
- One in five (20%) will use credit cards but one in ten say they are not confident they will be able to meet the required payments to pay off their credit/loan.
- One in ten (10%) will rely on buy now, pay later – another one in ten (8%) are looking for their work Christmas bonus to tide them over the festive period.
Data from the Bank of England1 shows that a typical UK household spends just over £2500 a month. However, new research from Aviva reveals that a typical Brit will spend an additional £1,565 on average during the festive period this year, amounting to 60% more than a ‘normal’ month.
The highest proportion of this extra spend on socialising/ parties/ buying Christmas outfits (£355); another £320 is paid out travelling to see friends and family or taking off for a Christmas break. Just under £250 on average is spent on presents, and it’s expected £240 will be spent on the traditional Christmas tree and all the decorations around the home and garden.
The poll reveals that 49% of those surveyed will use money they already have in their current account to pay for Christmas this year, while one in five (20%) will dip into savings pots to pay for the celebrations, and a further 20% will use credit cards to see them through. However, as many as one in ten (9%) say they are not confident they will be able to meet the required payments to pay off any credit/loan in the New year.
A further one in ten (10%) will rely on buy now, pay later to treat their loved ones and a lucky few (8%) say they are looking for their work Christmas bonus to fund the jovialities.
For the majority (76%) who claim to enjoy the festive period, food tops the charts as the most enjoyable aspect of Christmas with 66%. Spending time with friends and family comes a close second with 65% and two in five (44%) enjoy decorating the house and Christmas tree. Enjoyably, 6% enjoy dressing up as Santa!
| The Christmas food | 66% |
| Spending time with friends and family | 65% |
| Buying presents for others | 49% |
| Decorating the house | 44% |
| Feeling nostalgic | 38% |
| Seeing how excited children get | 35% |
| Receiving gifts from others | 34% |
| Christmas parties/ entertaining | 25% |
| Dressing up as Santa | 6% |
But Christmas is not everyone’s cup of tea. One in six (17%) state that they do not enjoy the festive season. Almost half of them (49%) say it feels like ‘forced fun’ – this figure rises to 62% of over 55s in this category. Some say it’s just too expensive (44%), others worry about how they are going to pay for it (35%) and say it’s far too stressful and impacts their health and wellbeing (28%). One in five (20%) say they eat far too much and regret it later and a similar number (18%) simply don’t like socialising!
When it comes to receiving gifts more than a third (36%) have asked for, or think they will receive, cash this Christmas. The largest proportion plan to:
| Save it – short term (cash) | 33% |
| Spend it on here and now (games, clothes, nights out etc) | 26% |
| Save it for a bigger purchase – holiday, house, car, wedding | 20% |
| Buy presents for other people | 17% |
| Spend it on my children/ grand children | 16% |
| Save it – long term (fixed term savings, premium bonds, ISAs) | 16% |
Alistair McQueen, Head of Savings and Retirement at Aviva says,
“Most of us love Christmas, and it appears that it’s the giving, rather than the receiving, that brings us most joy.
“The spirit of generosity is to be celebrated. But managing our money will help ensure our Christmas cheer is not followed by a New Year hangover.
“By sticking to a Christmas budget; minimising our use of debt; and by shopping around for discounts and offers, we’ll be better placed to enter 2024 on the financial front foot.
“To paraphrase, our money is for life, not just for Christmas!”
There are a number of free online budget planning tools like MoneyHelper or Stepchange, as well as discount and cashback websites such as Quidco.com or Topcashback that can help.
