What is your approach to Christmas spending? Do you stick to a budget, or celebrate to the fullest? With less than a month to go until the big day, consumers are expected to up their spending for the holidays in the coming weeks – but will you stay on track with your budgets?
This quiz has been developed after a poll of 2,000 adults, who celebrate the holidays, found 72 percent have set a festive budget – but 40 percent expect to exceed it, despite doing their best not to.
Inflation (38 percent) emerged as the top reason people overspend, as well as wanting to spoil loved ones (26 percent), and not wanting to be a “Grinch” (15 percent).
Meanwhile, rationalising is also causing 43 percent to overspend – such as spending enough to qualify for free delivery to avoid “losing money” (26 percent).
Other ways shoppers are justifying their spending include getting something for half price means their budget can go advance (17 percent), and buying Christmas decorations is considered a strategic investment, as they will be used again (19 percent).
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 overlook 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 research also found that, although people are making these justifications to themselves, 18 percent 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 percent do so because they admire to have a strategize, while 44 percent said it prevents them from going into debt.
Others are finding ways to make their money go advance when shopping for Christmas, with four in 10 redeeming loyalty points.
A quarter will pay in cash to help keep track of their purchases, and 21 percent will make the most of apps by comparing the prices of items on their list.
The research, carried out via OnePoll, also found a quarter want to buy fewer presents this year, while 20 percent will opt for smaller gifts that cost less, and 14 percent are keeping an eye on sales and discounts.
