AJ Bell press comment – 21 December 2022
Laura Suter, head of personal finance at AJ Bell, comments:
“As lots of people do a mad dash around the shops to buy last minute Christmas gifts they won’t be splashing as much cash as usual, as a quarter of people plan to cut the amount they spend on presents this year*. On average people will be spending £424 on all their Christmas presents this year, not including any other costs of Christmas.
“The cost-of-living crunch has squeezed people’s finances, and it means many are planning to have a leaner Christmas this year, buying fewer or smaller presents. Almost two-thirds of people said they are spending less because they have less disposable income, as rising prices eat into their household budget. On top of that half of people said they are worried about the cost-of-living crisis and so are spending less.
“But a surprise bonus of the cost-of-living crunch is that people are more willing to open up to family and friends about money issues and bring up the thorny subject of present giving. A third of people have agreed with family and friends to spend less on presents this year, in a bid to reduce the Christmas spending hangover.
“Just one in ten people plan to spend more money this year, and for lots of people that’s because price rises mean it costs more money to buy the same number of gifts as last year. On top of that a quarter of the people who say they are spending more are doing so because they have more family members to buy for, while another quarter say they feel pressure from family and friends to spend more on Christmas than last year.
“Now it’s so close to Christmas the most important thing to do to avoid over-spending is not to make panic purchases. It’s better to head to the shops with a rough idea of what you want to buy and how much you want to spend, rather than rushing around and grabbing things last minute. The sales have started in some shops, so before you head to the checkout do a quick Google to see how much you can buy the item for in other shops – that two minutes of searching could save you a lot of money.”
*Based on a nationally representative survey of 2,000 UK adults carried out online by Opinium on 9 December 2022.
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Are you planning to spend more or less on Christmas presents than last year? |
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I am planning to spend more |
9% |
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I am planning to spend about the same |
51% |
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I am planning to spend less |
34% |
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I am not planning to buy any gifts this year |
6% |
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Source: AJ Bell. Based on a nationally representative survey of 2,000 UK adults carried out online by Opinium. |
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Which of these statements explain why you are planning to spend less this Christmas? (Please select all that apply.) |
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I have less disposable income this year |
63% |
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I am concerned about the cost-of-living crisis |
49% |
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I have agreed with family, friends and loved ones to spend less |
34% |
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I have not been able to save enough money to buy gifts this year |
21% |
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I am in debt |
17% |
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Other |
1% |
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Source: AJ Bell. Based on a nationally representative survey of 2,000 UK adults carried out online by Opinium. |
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Why are you planning to spend more on presents this Christmas? |
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Presents are more expensive than previous years. |
45% |
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I have more disposable income this year |
34% |
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My family has grown / I am buying for more people |
25% |
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I feel pressure from family and friends to buy more expensive presents |
23% |
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I want to treat my friends, family and loved ones more as it’s the first non-covid restricted Christmas holiday in three years |
22% |
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I want to gift specific things which are more expensive |
11% |
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Other |
5% |
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Source: AJ Bell. Based on a nationally representative survey of 2,000 UK adults carried out online by Opinium. |
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