Brits’ Savings Pay for Christmas
Christmas spending this year will come from hard earned savings as research shows Brits will take a total of £2.29 billion from deposit accounts. Find out how a prepay card could help you budget.
Figures from Santander savings and investments revealed one in five Brits intend to use their savings to cover some or all of the Christmas expense, with an average withdrawal of £212 each.
The majority of the nation was also shown to be cutting back on Christmas this year with 62 percent reducing the amount they spend on gifts, parties and food.
Many are planning to exchange gifts for cash to help with financial insecurity as almost two million intend to do.
“While many people have decided to rein in their spending this year, Christmas still looks set to make a significant dent in the nation’s savings,” said Reza Attar-Zadeh, Santander savings and investments director.
“We’re encouraging savers to keep an eye on their expenditure over this period so that when it comes to saving in the New Year, they’re starting from a good base.”
The average Brit now deposits £100 each month, meaning for those withdrawing the average for Christmas will spend 16 percent of the total they saved this year.
The Santander Saving Snapshot revealed 42 percent are currently saving nothing, and 31 percent have no savings at all.
Budget with a Prepay Card
If you are taking out savings to pay for Christmas make sure you only take out what you require and not more so your future is not jeopardised.
By loading this money onto a prepay card and making a budget for each area of your Christmas spend you will be able to stick to it and not have to withdraw any more.
A prepay card does not let you overspend so when you have run out of funds it will not let you use it to make any more purchases.