Brits aren’t letting the soaring cost of living and Budget worries ruin Christmas – we’re just getting savvier about how we spend our hard-earned cash.
A new survey of the nation’s financial habits has revealed that the festive season will cost each person an average of £603 this year, a national total of over £30 billion.
But according to the research by PayPal, some of us take a more strategic approach to yuletide purchases than others.
The savviest shoppers can be found in London followed by Sheffield and Cardiff. Meanwhile, people from Newcastle, Leeds and Liverpool were the least smart in seeking out deals.
Methods for making the most of our money differ but include bargain-hunting, loyalty points, rewards programmes and special offers.
Around 31% use a wider mix of payment methods to manage costs, while many are embracing a ‘points pro’ mindset. Around one in five 18% save loyalty points for festive purchases, while 16% put gift vouchers aside to help cover the cost of Christmas shopping.
These ‘points pros’ expect to redeem an average of £57.20 worth of rewards, while the average Brit estimates they will save £88.70 through a combination of deals, cashback offers, loyalty points and shopping early.
The savvy approach helps to relieve stress with 58% saying they feel more in control of their holiday spend when they have a clear plan for how they will pay for it.
Dave Jones, head of UK consumer at PayPal, said: “After the Budget, every pound has to work harder – and this Christmas we’re seeing a new kind of shopper emerge.
“The ‘points pro’ isn’t cutting back on Christmas; they’re outsmarting the cost of it: stacking loyalty points, vouchers, cashback and flexible payments to get the same festive season for less.
“The Brits feeling calmest this December aren’t the ones spending least – they’re the ones who’ve planned how they’ll pay.”
One in seven – around 7.7million people – plan to use Buy Now, Pay Later services, such as PayPal’s Pay in 3 or Pay in 30, to help spread the cost of Christmas this year.
Reasons to do so include spreading the spend across paydays (55%), keeping money in their account for other festive costs (35%), helping with budgeting (34%), avoiding paying interest (33%) and avoiding using a credit card (26%).