07 December 2023 , 09:18
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Nearly three-quarters of Christmas shoppers (72%) have set themselves a festive spending budget this year – and are buying fewer (25%), or smaller (20%), gifts, in an effort to stick to it, research has found.
Other ways Brits are attempting to save the pennies this Christmas are by redeeming loyalty points when buying gifts (40%), and keeping an eye out for discounts or sales (14%).
One in four, of the 2,000 adults polled, who celebrate the holiday season, are keeping track of their purchases by paying in cash, while 21% use price comparison apps to tick off the items on their Christmas list, at the most affordable prices.
But despite the sensible steps many shoppers are taking ahead of the big day, four in 10 expect to exceed the Christmas budget they have set for themselves.
Over a third (38%) blame this on inflation, while 26% are keen to spoil their loved ones – and 15% don't want to be seen as a “Grinch”.
Shop prices 'are yet to peak and will remain high' as inflation hits new heights
Meanwhile, rationalising is also causing 43% to overspend – such as spending enough to qualify for free delivery to avoid “losing money” (26%).
Other ways shoppers are justifying their spending include getting something for half price means their budget can go further (17%), and buying Christmas decorations is considered a strategic investment, as they will be used again (19%).
Carmen Derosas, spokeswoman for PayPal UK, which commissioned the research to launch its “Festive Spending Snapshot”, said: “Our findings show there is a clear intention to budget this festive season, amid rising prices and costs of living.
“However, many of us still admit to going over our budget, and rationalising our spending. That’s why we are encouraging the nation to forget rationalising, and adopt a more budgeted approach.
“We offer an easy and convenient way to keep track of your transactions, and stay on top of your finances this Christmas.”
The OnePoll research also found that, although people are making these justifications to themselves, 18% want to be more controlled with their spending this year as the cost-of-living crisis continues to bite.
Of those setting a festive forecast on their spend, 45% do so because they like to have a plan, while 44% said it prevents them from going into debt.
TOP WAYS ADULTS ARE CUTTING THEIR FESTIVE SPENDING:
- Being smarter with how they spend their money
- Buying less presents this year
- Using more vouchers/discounts/loyalty points
- Buying smaller presents for people (smaller: costs less)
- Only buying items that are on sale/discounted