Half The Population Likely To Overspend At Christmas
In spite of bleak forecasts for the retail sector, nearly half of us are likely to overspend at Christmas according to a new MORI poll conducted for the British Bankers' Association (BBA).
Forty nine per cent of the population say they will either set no budget at all or at best only a loose budget, while one in ten people say that they will spend "whatever they feel necessary to have a good Christmas". However, a further one in ten claim that they are likely to spend less than their budgeted figure.
Women are more likely to budget tightly for their Christmas spending than men - although they are also more likely to overspend.
The UK regions are notably divided when it comes to 'good housekeeping' - and sticking to good intentions. Sixty per cent of people living in the South West intend to budget tightly while over a quarter of people in Wales and East Anglia will set no budget at all. Perhaps surprisingly, people in the most affluent region, Greater London and the South East are the most disciplined when it comes to sticking to their planned budgets (55%), while 55% of northerners expect to spend more than planned.
Tim Sweeney, director general of the BBA said: "Spending more than we planned seems to be one of the Christmas traditions most of us take for granted, but it's not hard to avoid Christmas festivities turning into a New Year financial hangover - just remember to allow for some leeway for extra spending. Making arrangements with your bank in advance helps to avoid the higher interest rates and charges caused by unauthorised borrowing."
Summary Of Findings
Almost half (49%) of the adult population aged 15+ say that this Christmas they intend to set only a loose budget, or no budget at all. Over one in five (21%) say that they will set no budget at all for how much they spend on presents, food and drink, social occasions etc. With an adult population of 46 million, this means that approximately 10 million people will approach the festive period without a spending target in mind.
Those planning not to budget too tightly this Christmas (49%) are balanced by the 46 per cent who say their spending will be subject to a very or fairly tight budget (46%). The spending of over one in ten (13%) adults will be subject to a Avery tight budget".
Although over 70 per cent say they will have some kind of budget, less than half (49%) expect their spending to go as planned, or to actually under-spend.
Over two-fifths (45%) of those interviewed actually expect to spend more than they originally planned. One in ten (10%) say they will spend much more than planned - "whatever they feel necessary to have a good Christmas". In general it is those budgeting loosely who are the most likely to over-spend (55%). Those setting a loose budget this Christmas are four times more likely to spend "whatever they feel necessary to have a good Christmas" than a those setting a tight budget (16 per cent compared to 4 per cent).
Women (53%) are more likely to budget tightly for Christmas than men (39%). However women are also more likely to exceed their spending limits (48 per cent compared to 42 per cent of men). Men and women are equally likely to spend "whatever it takes to have a good Christmas".
Over half (55%) of under-25s will budget loosely for Christmas; this is the only age group in which a majority will budget loosely.
Perhaps reflecting the prudence required by some pensioners, over three-fifths (63%) of over-55s feel they will stick to or under-spend their budgets. Only 29 per cent of over-55s believe they will over-spend (compared to the overall average of 45 per cent). However, there is no difference between age groups in terms of under-spending; only around one in ten of all age groups are likely to spend less than their self-imposed budgets
Those in the South West claim to be the most prudent at Christmas; this is the only region where a majority of people intend to budget tightly. Three fifths (60%) of those in the South West will set a fairly or very tight budget for their Christmas spending. There are only two other regions where, as in the South West, more people claim to be setting tight rather than loose budgets (these being the West Midlands and Greater London).
The Welsh go against the overall pattern for budgeting this Christmas: 19 per cent will set a very tight budget (6 per cent above the overall average). Over a quarter of people in Wales (28%) and East Anglia (27%) will set no budget at all (compared to an average of 21%).
Those in the South East and Greater London (55%) are the most likely to stick to their planned budgets. Those in the South West (52%) and in Yorkshire and Humberside (51%) are also particularly likely to feel that they will stick to their budgets.
People in the North are, by their own admission, the least likely to stick to their budgeting plans; people in this region (55%) are more likely than those in other areas to spend more than their budget. However, only 3 per cent of people in the North believe they will spend less than their budgets (compared to 9 per cent for Great Britain as a whole).
Christmas budgeting can be especially difficult for families; those with children in their household budget more tightly than those without (50% compared to 44%). The extra spending demand on families is reflected by a majority (55%) of those with children living at home suggesting that they are likely to over-spend. This is 15 per cent more than those without children in their household.
Technical details
The survey was carried out among a nationwide sample group representative of the UK population's general characteristics. MORI interviewed 1,949 people aged 15 and over between 12-17 November 1998.
