For some of us, the reality of our December spending spree only hits once January comes around and we’re slightly strapped for cash. This begs the question, just how much do we spend at Christmas and during December on the whole?
The Bank of England’s Christmas spending statistics reveals the impact that the festive period has on the average household spend in December. However, it’s not all doom and gloom!
Simply being aware of how much you could be overspending, allows you to identify the areas that you can save, too.
In this article, we delve deeper into the UK’s Christmas spending statistics and offer our top tips to help you save rather than spend this December.
How much does the average household spend in December?
In the roundup, the Bank of England states that the average household spends over £2000 each month, however, this increases dramatically over the festive period.
The report revealed that we spend at least £500 extra in December – This means that we’re spending at least 25% more than normal, by the time Christmas rolls around!
Many of us Brits indulge in more alcohol, food, festivities and buy more gifts around this time of year, so this figure may not come as a surprise. However, this does highlight the need to alter our spending habits, so that we’re not feeling the pinch in the new year.
How does this compare to a typical month’s spending?
It may come as a shock to discover that we like spending more on some things than others around this time of year.
The same report from the Bank of England revealed that on average, we spend 10% more on food, 20% more on alcohol and an astonishing 35% more on books in December, compared to a typical month!
This could be down to our increased generosity at Christmas, as many people opt to give alcohol and books as gifts. Not only that, this information highlights the areas where there could be more room to save at this time of year.
How you can reduce your spending in December
The pressures to spend from friends, family and even retailers can be immense at this time of year. But it’s important to set limits and only spend within your means, so that you start the new year on the right financial footing. Here are a few ways to save this year.
Envelope budgeting is an age-old method of setting spending limits that you have to stick to. This involves separating your budget into envelopes of cash, however, carrying around large amounts of cash is not the safest option.
Envelope budgeting with prepaid cards, also known as jam jarring, gives you an extra level of security, as you don’t have to carry cash and you can only spend the money that’s loaded on the card. With the icount prepaid Mastercard, you can do all of this and more.Visit our card uses page for more information on how to make the most of your prepaid card.
Make the most of comparison sites
Rather than spending 10% extra on food in December, make the most of comparison sites and make sure you’re getting the best deal.
Don’t buy full price
An easy way of reducing your spending in December is making sure to get a discount on everything you buy.
To save on electronics and games consoles, browse refurbished options on the eBay and GAME websites. Alternatively, if you have a child who is a student, be sure to use their student discount. This will see you spending at least 10% less on most high-street brands!
It’s important to remember that Christmas doesn’t have to cost the earth. With the help of your icount card and our handy money saving tips, you’ll be able to reduce your spending whilst getting in good financial habits for the year ahead.