Home Leisure & Lifestyle No Gifts This Christmas: 33% of Brits Plan to Not Exchange Gifts to Be More Financially Savvy

No Gifts This Christmas: 33% of Brits Plan to Not Exchange Gifts to Be More Financially Savvy

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With December approaching, Christmas preparations are underway in the UK, but are spending habits changing compared to the festive period last year?

Despite 68% of Brits feeling pressure from social media, TV advertising, friends, and family to spend big in 2023, a new nationwide study from credit management company Lowell has uncovered that people are planning to be more money-conscious.

In fact, two-thirds (64%) have admitted to prioritising their money management this Christmas, compared to just a quarter (25%) last year.

Last Christmas, 24% of people in the UK took six months to pay it off; however, this year, the majority (38%) plan to have everything paid off within a month. Lowell’s research demonstrates why and how people are planning to be more financially conscious despite ongoing pressures to spend big.

How many people feel the pressure to spend a lot at Christmas?

Encouragingly, the number of Brits feeling pressure to buy more than is needed over the festive period has dropped from 34% last year to 30% in 2023. However, there is undoubtedly pressure this time of year to spend, with 24% feeling that they need to deliver the perfect Christmas for their family.

What factors have inspired people to be more financially conscious this Christmas?

Compared to 2022, 39% more Brits are determined to be money-savvy throughout December, with 29% having the desire to improve their personal finance resilience and well-being. 18% want to prioritise paying off current debt, while 32% are cutting back on Christmas spending due to spiralling household costs.

How are Brits funding their festive spending?

Last year, more than half (51%) used their savings to fund their Christmas; however, in 2023, that has reduced by 5%, with more Brits opting to budget with their disposable income (57%). Encouragingly, fewer people are using credit cards and buy now, pay later schemes this year compared to last, with a combined reduction of 6% year over year.

How are people going to be more money-conscious this Christmas?

To be more financially conscious this Christmas, 15% are going to shop at second-hand sites such as Facebook marketplace and Vinted, 11% are going to avoid social media to prevent unnecessary spending, and a third (33%) have even agreed with their family and friends to not exchange gifts at all.

John Pears, UK CEO of Lowell UK, said, “Sometimes the pressures of spending at Christmas can be overwhelming; however, our data is demonstrating that people in the UK are doing everything they can to budget, prioritise essential spending, and celebrate the festivities within their means.

“Many social and economic factors have inspired Brits to be as money-savvy as possible this year, and it’s encouraging to see people do what they can to enjoy the festivities without putting themselves in financial difficulty where possible.”

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