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Nearly 25% of People Are Worried about Their Finances This Christmas

Posted on December 10, 2018 by Canary Claims man in a Christmas jumper looking at a laptop with a worried expression

With Christmas just around the corner, we find out if consumers are concerned about their finances over the festive season.

According to statistics from 2017, the average UK household spends over £800 at Christmas. Some individuals start saving in advance, but for others, December can be a struggle when it comes to money.

At Canary Claims, we conducted a survey to discover how many people are concerned about their finances this Christmas. In an online survey, we asked 2,000 people, “Are you worried about your finances this Christmas?

Are You Worried About Your Finances This Christmas? Response
Yes – I always overspend 11.2%
Yes – But I am trying to cut back 12.1%
No – I spend within my budget 29.3%
No – I don’t need to worry 24.9%
Not sure 22.4%

Nearly 25% of individuals answered yes, they do feel worried about their finances — though more people are inevitably trying to cut back on spending. Our research aligns with results from Bobatoo. Their research revealed that 66% of consumers wish to spend less this Christmas than the year before.

Young People Most Concerned about Overspending

Notable differences in results came between those under 24 and those over the age of 65. Of those between the age of 18 and 24, 30% answered yes they are worried about overspending. In contrast, only 15.2% of those over the age of 65 responded yes, with nearly 74% responding with no.

There are a number of potential reasons for those under 24 feeling more worried about their finances. They are less likely to be on the property ladder and increasing rent prices can cause a strain. There is a strong argument from many individuals and companies that there is a lack of financial education within the UK. If people were taught more about budgeting, debt and solid financial skills, it would significantly help those struggling with personal finance.

Pressure on People to Spend Money at Christmas

With Christmas gifts and food flooding the shop shelves as early as September, the pressure to buy products can be great. Pressure about spending money comes from social media, retailers TV advertising, friends and family.

An indication of how much pressure families can have to spend at Christmas is shown by Ben Buckley, who set up a GoFundMe page to help pay for his family’s Christmas.

How Can Individuals Spend Less at Christmas?

If you are worried about spending too much money this December, here are a few ways to spend less and handle your finances.

  • Make a budget — Budgeting for any big event is essential and Christmas is no different. In fact, Christmas can be easier to budget if you know how much you spent the previous year. The important thing is to stick to your budget, whether this means turning down some festive events or cutting back on certain things.
  • Cut unnecessary gifts — Money Saving Expert Martin Lewis suggests to cut out the gifts you might buy unnecessarily. Often these gifts won’t be something that an individual really wants but more of a gift you feel obliged to purchase.
  • Check online deals — With websites such as VoucherCodes and Pouch, online shopping can offer discounts on some of your gifts. Some places offer free delivery if you order before a certain date as well.
  • Buy own-brand products — We usually pay more for branded items so why not buy some own-brand products instead? This can reduce costs and often taste just as good. This trick could save you over £500 a year.
  • Try not to get into debt — The desire to put Christmas expenses onto a credit card or take out a short-term loan can be tempting. But when possible, try not to do this as you’ll find yourself suffering in the new year. Spend within your budget and if you do feel concerned, contact the National Debtline. To not get into debt you might have to cross a few people off your gift list, but in the long term, it will be beneficial.

If you find yourself struggling with money around the holidays, take the time to start your PPI claim. After Christmas, you have just eight months to identify any mis-sold policies and submit a claim. Canary Claims can start your claim today.