Independent financial comparison website, Know Your Money, recently surveyed 2,000 people in the UK to explore the true cost of Christmas.
From the cost of Christmas essentials such as presents and cards, to the environmental impact of Christmas, The True Cost of a Great British Christmas explores how public spending has changed over time.
Among the questions, UK residents were asked about how they funded their Christmas (2018). The survey revealed that:
- Of the number of people who used funds from their current accounts to help pay for Christmas 2018, 51.6% were women while 48.4% were men
- Of the number of people who paid for Christmas using their credit cards, 57.9% were men while 42.1% were women
- Of the number of people who borrowed from friends and family to help pay for Christmas, 61.5% were men while 38.5% were women
- Of the number of people who took out loans to help pay for Christmas, 55.7% were men while only 44.3% were women
Overall, men spend more on Christmas than women, with men spending £787.34 last Christmas (2018) and women spending £682.40. Women however, spent more on presents.
Among the questions, respondents were also asked about future spending and how they plan on financing Christmas 2019. While there were no significant changes overall, the results revealed that more men plan to take out loans to help pay for Christmas than women:
The number of men who plan to take out loans in 2019 increased from 55.7% to 63.6%, while the number of women decreased from 44.3% to 36.4%
The number of men who plan to use their credit cards in 2019 increased from 57.9% to 59%, while the number of women decreased from 42.1% to 41.0
Adding to this, a higher number of men are planning to spend more on Christmas 2019, while women are hoping to spend less. Of the number of people who are planning on spending more on Christmas 2019, 59.6% were men while 40.4% were women. And of the number of people who are planning on spending less on Christmas 2019, 44.6% were men while 55.4% were women.
In terms of region, unsurprisingly, people living in London spend the most on Christmas (£1,004.81), while those from the East Midlands spend the least (£626.67).
John Ellmore, Director, KnowYourMoney.co.uk, comments:
“Christmas is the most expensive time of the year, especially for families and those in long-term relationships. However, when consumers live beyond their means, it can seriously impact their finances in the long-term, especially their credit ratings.
“This is why we always stress the importance of spending within your means. Luckily, taking out credit to pay for Christmas can be avoided by smart budgeting. It’s best to start sooner rather than later. One aspect of a good strategy is putting a sum of money aside every month, and then categorising this money into spending pots, to increase the visibility of your spending.”