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MoneyMagpie’s recent survey of 2000 people revealed some interesting spending habits around the Christmas season – including the fact that 65% of over 60s don’t save ahead for the festive season, instead relying on their current income to fund it.
Financial planning behaviors across the age brackets might surprise you, too. The younger the respondent, the more likely they were to plan ahead and set money aside to save in the months running up to Christmas. This is despite the fact that younger people spent less, too. A huge 69% of people under the age of 30 saved ahead of the season, compared to 55% of 41-50 year olds, 49% of 51-60 year olds, and 35% of over 60s. However, those under 30 were also the majority who spent under £300 (62.6%) and 25.3% under £100, compared to just 23.8% of over 60s spending under £300 (17.1% under £100).
Parents were also the most likely to save ahead, at 63% of respondents compared to 45% of childfree respondents. However, parents were also the most likely to spend over £500 (37%) as well as use a credit card – suggesting that even saving ahead was not enough to cover the full cost of Christmas for families.
MoneyMagpie Editor and financial expert Vicky Parry said: “While the over 60s are those with a predictable income compared to younger respondents, they have a more conservative approach to how much they spend at Christmas, too. Decades of financial education is showing in these trends, as they tend to pay from their current income such as pension drawdowns rather than relying on credit cards to fund Christmas.”
“The saving and spending habits revealed by the survey reflect that older respondents have adult children, too: their financial responsibility at Christmas is no longer about creating the magical event of Christmas Day like we all do with younger children. The more conservative approach to spending also reflects changes in consumer behavior towards Christmas through the generations. It’s become an expensive time of year for individuals and families alike, compared to a few decades ago when there was less pressure to have the latest decorations, loads of gifts, or huge feasts.”
The good news is there are plenty of ways to make sure Christmas isn’t out of your affordability range.
- Agree a spend limit on gifts with family and friends – check out our article on gifts under £50 for ideas
- Choose experiences together over gifts for older children and friends
- Switch to own brand foods – there are some AMAZING supermarket brand foods around at this time of year!
- Check our Deals pages for weekly deals, beauty deals, and food and drink deals to save when you do spend.