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Almost 2/3rds of Brits will cut back on Christmas spending this year

Almost 2/3rds of Brits will cut back on Christmas spending this year
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That’s right, I’ve mentioned the C-word. And while I don’t have my Christmas tree up already, I have started to think about my Christmas spending for 2020. But with so much uncertainty about what Christmas will look like this year, are we likely to do the big blow outs that we have done in the past?

According to data from Piplsay, 63% of Britons will cut down on their holiday spending this year. That means less money being spent on the high street, on socialising and on travel. Let’s take a look at what Christmas spending is going to look like this December.

Christmas spending in 2020

As I write this, we are in lockdown 2. With restrictions due to lift on 2 December 2020, news outlets are already trying to predict what Christmas will look like this year.

The likelihood is that it will be a much more subdued affair compared to previous years. While there is the hope that bars and restaurants will open again, there is no guarantee. And there is huge uncertainty surrounding whether households will be able to mix.

As a result, it’s not a surprise that Piplsay’s survey of 11,055 Britons found that 39% are planning to spend considerably less this Christmas.

The big issue is how much household finances have been affected by the pandemic. According to the figures, 42% of respondents felt that their finances had been impacted to a large extent by Covid-19. So it’s understandable that Britons are looking to protect themselves and their finances this Christmas.

Let’s take a look at the areas where people are focusing on reducing their Christmas spending:

  • 35% stated that they’ll look to cut back on socialising/eating out.
  • 31% said they’ll spend less on travel, with only 20% planning to travel during the Christmas period this year.
  • 18% replied that they’ll save money on Christmas gifts. My guess is that if you aren’t having to visit your Auntie Sarah on boxing day, then you don’t need to buy her a token gift.
  • 16% indicated that they’ll spend less on personal shopping. There’s no need to buy a new outfit for the Christmas work do this year.

Be financially savvy this Christmas

Christmas can be a tricky time financially, even if you aren’t in the midst of a global pandemic. So how can you effectively reduce your Christmas spending and be clever with your money?

Here are a few top tips to help your finances survive Christmas.

Make a budget

Before you get stuck into the festive season, sit down and make your Christmas budget. This should include gifts you plan to buy, food for the big day, socialising and any novelty Christmas jumpers you feel you need.

Remember, it’s just one day of the year so don’t feel you need to go overboard.

Consider a 0% purchases credit card 

No one should put themselves in financial difficulty just to pay for Christmas. But if you just need a little extra wiggle room and are confident you can pay down your balance, then a 0% purchases credit card could be a good option.

This will give you an interest free period in which to pay off your Christmas spending. It could help you avoid costly interest charges.

Use reward schemes

A great way to save money at Christmas is to make the most of reward schemes. Credit cards like the M&S Shopping Plus card or the American Express Nectar Credit Card let you earn points on your spending. You can then convert these points into vouchers to help with your Christmas shopping.

Take advantage of Black Friday

Black Friday is coming up and most retailers are planning discounts across their ranges. If you have an idea of what gifts you need to buy, take a look and see if you can get them any cheaper in the Black Friday sales.

For more tips on how to shop like a pro during Black Friday, check out our advice on what time to shop on Black Friday to get the best deals.

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