Shoppers will spend less on paying for gifts and food this festive period compared to last year, a survey reveals.
On average, customers will shell out £569 on their Christmas shopping, down from £576 in 2022 with men (£614) likely to spend more than women (£528).
Just 10% of the 2,000 shoppers surveyed by Hargreaves Lansdown are planning to spend more than last year, while only one in 20 will be dropping more than £1,500.
Respondents noted numerous ways to dodge a hefty Christmas spending bill including buying gifts for fewer people (18%), shopping around (16%), socialising less (12%) while 9% are shopping online rather than the high street.
Those looking to cut their spending the most will be women, parents, higher earners, and younger people.
A couple of inventive methods to lighten the financial load this Christmas are buying ‘preloved’ gifts (5%), with 6% of shoppers saying they would be making their gifts this year.
‘Cut-price Christmas is on the cards’
Sarah Coles, head of personal finance, Hargreaves Lansdown said: “A cut-price Christmas is on the cards. We’ll spend less on average than last year, employing a range of cunning techniques to keep the costs down. However, we’ll still be forking out an average of £569, and one in 20 people will spend more than £1,500, so even a frugal festive period is horribly expensive.
“Just under half of people said they would cut the cost this year, and some groups are particularly keen to keep a lid on their spending. Some 48% of women will be cutting back, 58% of parents, 50% of those aged 35-54, and an impressive 60% of those aged 18-34.
“These groups may well have more people to buy for – so Christmas can be alarmingly expensive. They may also be on lower incomes – particularly women and younger people – so more of their budgets are being swallowed by everyday costs. However, even higher rate taxpayers are cutting back, with half saying they’ll spend less this year.”
Here are some tips on how to keep things frugal over the festive period, from the finance company.
Tips on how to afford the festive period
- It’s not too late to start saving. You should have at least a couple of paydays before the big day, so this is your opportunity to put aside anything you can afford to help cover the cost.
- If you establish a budget now, and consider what you need to buy, you can tell at the outset whether it’s realistic. That gives you the opportunity to consider whether you can stay within your budget by shopping around, or whether you need to make more drastic cuts.
- If you can’t afford to buy for everyone, or you need to limit the budget severely, the sooner you talk to your friends and family, the better. If you get in before anyone has done any shopping, you can give everyone a chance to save.
- If you absolutely can’t get through the period without borrowing, now is the opportunity to find the most cost-effective way to borrow with plenty of time to go until the season gets into full swing.
