Spending Cuts Cut Christmas Splurge
Festive budgets are so tight this year a new report suggests many may have to cancel Christmas due to a lack of available money.
The Government’s Spending Review has been shown in the second annual money.co.uk Christmas Shopping Index to have had an impact on Christmas spending, with 40 percent of households having less to splurge as a direct result.
On average Christmas spending pots have been cut by 32 percent and almost 300,000 households are considering cancelling Christmas altogether.
If your Christmas budget is being squeezed this year try a prepaid card UK to help keep spending under control.
“It is obviously a shame to see so many people being forced to cut back on their Christmas plans, particularly as so many seemed to be planning to make this year special after cutting back in 2009,” said Chris Morling, money.co.uk’s MD.
“As a nation, we still haven’t come to terms with the idea of spreading the cost over the course of a year.”
The average household planned to spend £717 on Christmas prior to the Spending Review, a 43 percent rise on last year’s figure.
These households will on average spend only £485, saving £232 as a result, while 53 percent will stick to the original budget and not change their plans at all.
Many have failed to set money aside to cover the costs as less than 14 percent of total Christmas spending will be funded this year from money specifically saved for the event, down from 15 percent last year.
Budgeting: A Long Term Commitment
As the study shows, failing to save accordingly can severely affect your festive cheer as many have not the funds to spend on a merry Christmas.
If your disposable income is minimal it is worth keeping an eye on your spending each month to be able to save what little you can to spend on moments like these.
A prepaid card UK is a good way to prevent you from going over your own set budget, as well as ensuring you unknowingly do not dip into your overdraft, spending money you do not have.