Quiz reveals your Christmas spending habits - will you budget correctly?
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 - will you stay on track with your budgets?
This quiz was developed after a poll of 2,000 adults who celebrate the holidays found 72 per cent have set a festive budget, but 40 per cent expect to exceed it - despite doing their best not to. Inflation (38 per cent) emerged as the top reason people overspend, as well as wanting to spoil loved ones (26 per cent) and not wanting to be a ‘Grinch’ (15 per cent).
Rationalising is also causing 43 per cent to overspend, such as spending enough to qualify for free delivery to avoid ‘losing money’ (26 per cent). Other justifications included getting something for half price means their budget can go further (17 per cent) and buying Christmas decorations is a strategic investment as they will be used again (19 per cent).
Carmen Derosas, spokesperson 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. Although, 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 research also found that although people are making these justifications to themselves, 18 per cent 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 per cent do so because they like to have a plan, while 44 per cent said it prevents them from going into debt. Others are finding ways to make their money go further 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 per cent will make the most of apps by comparing the prices of items on their list. The study, carried out via OnePoll, also found a quarter want to buy fewer presents this year, 20 per cent will opt for smaller gifts that cost less, and 14 per cent are keeping an eye on sales and discounts.
Top ways adults are cutting their festive spending
- Being smarter with how you spend your money
- Buying less presents this year
- Using more vouchers/ discounts/ loyalty points
- Buying smaller presents for people (smaller: costing less).
- Only buying items that are on sale/discounted