The lack of financial planning by Scots who are already struggling financially this Christmas could cost them dearly.
According to one building society, Brits this year are looking to spend around two weeks wages on average in the run-up to Christmas Day.
We will spend £727 each on presents, decorations and food and drinks and with the average UK salary of £29,588 that is nearly two weeks of our take home pay.
However, the survey also highlights that 81% of those surveyed said they would probably overshoot their budget plans. And, more worryingly, 38% do not have a budget at all.
The findings highlight that of those likely to tackle Christmas without having a budget in place, men are more likely to do so at 42% than women are, at 33%.
Scots will have no budget in place
The survey also revealed that 44% of Scots will have no budget in place in the run-up to Christmas.
And a breakdown of what people will spend this year includes:
- Christmas presents: £363
- Christmas dinner: £37
- Christmas decorations: £21
- Snacks and treats: £26
- Christmas tree: £23
- Alcohol: £38.
Children will have the most money lavished on them on Christmas Day, they will receive £65 on average each and around a quarter of Brits say they will be spending more than £100 per child.
In addition to buying pricey Christmas pressies for family and friends, there’s also a need to buy ‘Secret Santa’ presents for work colleagues, the average cost is £20, and there is spending on Christmas party food and drinks and travel costs.
To help pay for Christmas, 26% of people buy items for the festivities throughout the year and 33% use savings to cover the costs. Another 34% will be turning to an overdraft, credit cards and personal loans to pay for Christmas, the poll reveals.
Financial planning is crucial
A spokesman for the building society said: “Financial planning is crucial to spend sensibly and people should set a budget that is affordable and stick to it.
“Christmas costs can quickly rack up with people spending two weeks of their salary paying for the festivities. It’s easy to spend more than we can afford and it’s also the reason why many of us begin the New Year in debt.”
If you live in Scotland and are struggling with debts, then it’s important that you get helpful and confidential debt advice.
For many people, it’s worth contacting Scotland’s Trust Deed to discuss what potential debt solutions are available so you can get back to better financial health and have enough money to pay for next year’s festivities without having to plunge into debt when doing so. Call the friendly team today on (0141) 297 1178.