Over the years, collectively our spending habits for the Christmas period have been increasing as the years go by. The UK is one of the big spenders with an average spend of £567 over Christmas, according to a survey conducted in 2018 by Deloitte.
The UK spends 42% more than the European average of £400. This was the highest amount next to Spain (£526) and Austria (£475). But where exactly is our money being spent?
The season of giving
More than half of all UK Christmas spending will go on gifts. While in the past the most popular Christmas presents consisted of Rubik’s cubes, Tamagotchi’s and BMX bikes, nowadays teenagers tend to favour more expensive technology including smartphones, computer consoles/games and interactive children’s toys. The most popular gifts amongst adults are expected to include chocolate, books, cosmetics and perfume.
The cost of buying gifts has also risen over time. While 30 years ago the Millennium Falcon Star Wars toy would have set you back £20, nowadays it retails for around £75. Even taking into account inflation figures, this would still be around 42% less than today’s price in relative terms.
In December 2018, the UK collectively spent approximately £446,000 every minute of every day on gifts alone.
The UK’s second highest expenditure is, perhaps unsurprisingly, on food and drink.
Getting prepared in advance
UK residents are an organised lot which is why nearly half of our seasonal spending takes place in November. More than half of UK shoppers prefer to get organised in advance with 53% of customers doing the majority of their shopping in November and 37% getting it all done and dusted in November alone. Only 12% leave it to the last minute and do their spending the week before Christmas.
Taking it online
Nowadays, online spending accounts for £1 in every £6 that we spend. Its thought that the pandemic will have only made this figure even higher with store closures due to coronavirus restrictions. Cyber shopping will make up 42% of UK shoppers overall spending activity, and with the increasing popularity of Black Friday and Cyber Monday, consumers are encouraged to take advantage of online deals early and even outside of these dates.
Protect yourself with home insurance
With the amount of money that’s spent over the Christmas period, it’s wise to ensure your gifts are properly protected while stored in your home.
The sad fact is that the number of break-ins can rise by up to 20% throughout the winter season, so you need to ensure your Home Insurance is up to scratch. For a review of your existing cover, get in touch with Jukes Insurance Brokers on 01527 874092.
