How the cost of living crisis will effect your Christmas

Christmas is almost upon us and for most it is a time for celebrations, a big family get together, Christmas dinner and loads of presents. Unfortunately for some, the cost of living will change how their Christmas goes ahead with nearly a fifth of families considering cancelling Christmas altogether.

Everybody is feeling the pinch and if cancelling Christmas hasn’t crossed your mind then you might have thought about how you are going to afford to celebrate the big day, perhaps you have family in another country or have extended family who will be expecting presents, for these people Christmas might look very different this year.

A Survey found that 41% of people are worried that their financial situation would crush their seasonal plans, with some thrifty brits finding other means to pay for the holidays. Nearly half are buying pre-owned products for gifts this year with 31% of people saying that they will opt for a buy now pay later method or loans to fund their Christmas shopping.

Parents are making the sacrifice this Christmas with 42% saying that only their children would be buying Christmas presents this year and a staggering 75% of shoppers said that they will purchase cheaper gifts this year. Meanwhile those families who don’t want to sacrifice their Christmas have said they will be cutting back on other aspects of their lives with 42% saying they would cut back on socialising, 17% will be cancelling Netflix and Amazon subscriptions and 24% have been selling their possessions online.

63-year-old retail worker, who wanted to stay anonymous, said “It’ll be cheaper gifts, and we’ll only be buying gifts for the children. It’ll just be us as other family members live in America and all over the place, that’s the compromise, we’re just buying for the children.”

Chloe Chan, a 23-year-old junior pharmacist, had this to say “At this point in time I will consider getting something slightly more affordable for myself, I have this habit of spending within my means, so I appreciate that with the cost of living crisis, I do not see myself getting any loans or instalments to pay for Christmas presents. My family is based in Malaysia so in terms of any plans for Christmas I’m not so sure I will have any in place, I will just be having a Christmas with my housemates”.

50-year-old retail worker, who wanted to stay anonymous, said “I’m not a Christian so I don’t get involved in Christmas the same way, but we do get involved in Christmas. I think for me I don’t like the commercialism of Christmas, about 20 years ago I went to Australia with my kids and there it was much more low key and much more about family and less about buying people stuff. That was a real lesson for me, was really enjoyable, so when I came back, I said to the family, “let’s just buy presents for the kids, let’s not buy adult presents, let’s not do this anymore” we stopped then and it really took the pressure off. My children are adults now, we exchange one gift, we don’t make a big deal about it. We cook dinner at home and have a family meal. So, in a way it’s not really affected me in the same way it may affect other people and I certainly understand that for people with young children it may be really hard this year.”

Lucy Ashford, 54-year-old student and part time vineyard worker, had this to say about the cost-of-living crisis “I think I am definitely going to try and reduce it this year, hopefully reduce it by a few of hundred pounds and now that my children are older I know I should because I think it is frivolous really spending a lot when it cost so much for fuel. So, the extra money I am getting back for my fuel rebate, I’m putting in a pot and that is going to be for Christmas so by December I will have three payments, so I will have £200 which I am going to try to stick to that for my Christmas presents. I don’t think I’ll do it but I’m going to try.”

Christmas is one of the few times where everybody comes together as a family, while families are still planning a Christmas it may look a little different this year. A cold house, a smaller dinner or less presents, this is what people are expecting to see and is what they’re planning for their own Celebrations.

This is not surprising as heating and electricity has more than doubled in price in recent years with it expected to be tripling in price in April 2023. Petrol prices hit record highs this year and everybody has noticed food increasing in price. If you’re lucky enough to have paid off your house then you may not have to worry about interest rates on mortgages or loans but that may not be the case for everyone, even those who are renting having their rent increased, those with a mortgage have seen their mortgage rates increase from 1.7% to 5.59%, which takes some peoples mortgage rates increase by hundreds of pounds of month.

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