UK households are facing tighter budgets this Christmas, with Nationwide research showing Brits expect to spend an average of £103 per person on gifts for loved ones. The world's largest building society has revealed that early November is the most popular time for Brits to buy the bulk of their Christmas presents.
With 14% of those surveyed concerned about affording Christmas, some 36% are planning to rein in their gift spending this year, while 42% will give Black Friday deals a miss. Nationwide predicts some 12.8 million transactions will be made on Black Friday, roughly 8% more than last year.
Spending by age group
Those aged 45-54 anticipate spending the most, averaging £119 per loved one, followed by 25-34-year-olds (£116) and 35-44-year-olds (£115). By comparison, over-55s expect to spend £90 per loved one, while 18-24-year-olds anticipate spending £87.
Over a third (36%) expect to spend less on gifts than last year, including 12% who anticipate spending significantly less. On the flip side, 15% plan to splash out more, while nearly half (49%) expect to spend roughly the same as last Christmas.
How households are managing costs
To help manage Christmas spending this year, people are planning to set a strict Christmas budget (26%), use loyalty points or rewards (24%), cut back on personal spending (23%), buy more items when they are on sale (21%), spread purchases across several months (20%), and start spending earlier than in previous years (17%).
As households monitor their finances carefully, Nationwide has reminded customers that its Flex Direct current account holders can now receive £120 cashback during their first year: £5 monthly for direct debit transactions and £5 monthly for debit card usage, while continuing to provide 5% interest on balances up to £1,500 for the initial 12 months.
Black Friday remains a major shopping moment
Mark Nalder, Payments Director at Nationwide, said: "Christmas remains one of the biggest spending moments of the year, but our research shows many households are planning ahead, starting their shopping now two paydays ahead and taking a careful approach to managing costs. From setting budgets to using loyalty rewards, people are looking for practical ways to make their money go further. My top tip is look for a current account with cashback for example we re-launched our FlexDirect current account* in autumn with cashback on direct debits and everyday spending."
Black Friday remains a huge shopping moment, with around 12.8 million transactions expected on the day, up 8% on last year, and almost 44 million across the wider Black Friday period. Showing that the day remains an important shopping moment, even though many people are questioning whether it always offers the best value.
