- Secret Santa spending averages £21 per year, depending on how many exchanges people are involved in
- Brits typically take part in one Secret Santa exchange per year, with 21% doing two or more
- Even with the savings from Secret Santa exchanges, Brits still spend an average of £596 on Christmas each year
- To cut costs, Brits are reusing decorations, opting for artificial trees, and not sending cards
- Personal finance experts at Confused.com share tips on how to keep costs down this Christmas
Secret Santa exchanges have quickly become a popular activity among families and friendship groups, saving Brits an average of £75 on Christmas gifts.
According to new research from Confused.com, 1 in 5 (20%) say Secret Santa helps ease their financial pressures during the festive season.
On average, Secret Santa gift exchanges cost Brits £21 each year. Most Brits take part in one exchange, although over a fifth (21%) take part in 2 or more, saving even more money. This can be a cheaper option for those in larger family or friendship groups, as it means only buying for one person overall. Plus, the fun of who has who adds even more excitement to the season of giving.
The main groups that people take part in Secret Santa with include work colleagues (78%), friends (30%), and family (26%). These exchanges offer a fair and cost effective way to enjoy gift giving with less stress and fewer money concerns. However, the research also reveals that overspending can be common, with Brits exceeding their Secret Santa budget by £14 on average - an amount that can quickly add up on top of other festive expenses.
Pressures to buy presents for everyone at Christmas can lead to stress for many. With additional Christmas costs on top of everyday expenses, many households will be looking for ways to save.
However, just under a fifth (18%) of Brits say their financial strain is alleviated by Secret Santa. Followed by just under a tenth (14%) who say it helps them to manage their money better over Christmas.
However, even with cost-cutting activities like Secret Santa, Christmas remains expensive. The average Brit spends £596 each year on Christmas. This includes covering the costs of presents - an eye-watering £355, on average - food (£172) and decorations (£69). These costs create a lot of financial pressure, with almost a third (31%) saying they’ve had to dip into their savings to pay for Christmas gifts. Meanwhile, a further 29% claim they’ve had to use a credit card, or cut back on personal spending (26%). More than a fifth (21%) admit they’ve also exceeded their Christmas budget.
With the cost of Christmas being so high, it’s unsurprising that many are looking for ways to cut back. Reusing decorations (54%), opting for an artificial tree (40%), and not sending Christmas cards (20%) are the most common way Brits are saving money. These methods can result in big savings throughout the remainder of the year.
To keep the season of giving exciting, Brits are also venturing away from traditional presents. Experience gifts are proving popular, especially within Secret Santa exchanges. Nearly a quarter (23%) have given or received show or concert tickets. This is followed by real-life experiences (21%) and family days out (20%).
With Christmas costs adding up, it’s clear people are becoming more savvy with their money and finding cheaper ways to enjoy the festivities with their loved ones.
Nicola Morgan, personal finance expert at Confused.com, shares tips for Brits looking to save money over the Christmas period:
“Christmas is a wonderful time of year for many people, but it can also bring financial pressure and added strain to households across the UK. There are small steps you can take that make a big difference to your festive finances. These include:
- Set a clear spending plan: Keeping track of your outgoings will help you prioritise, monitor your spending habits and cut back where necessary.
- Start saving early: Putting away a small amount each month can result in bigger savings at Christmas time. For example, saving £20 a month from June will give you an extra £140 to spend in December, reducing the need to rely on one or two paychecks to cover the full cost.
- Discuss budgets and wishlists: Not only does this help people get what they really want, but talking openly about budgets and sticking to agreed items helps avoid overspending.
- Look at alternatives: Joint experiences or Secret Santa are effective ways to cut back and still enjoy the joys of giving.
“It’s important to enjoy yourself over the festive season, but keeping an eye on your spending where you can will help ease strain and worry heading into the New Year”.
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