Three in five Brits get creative with thrifty gifts, repurposed decorations and alternative present ideas as they plan for a cost-effective Christmas

  • Cost-of-living means frugal Brits will create their own decorations (28%), buy second hand (17%) hand make gifts (12%) or offer their time (5%) to maximise festive finances
  • Younger Brits are proving extra entrepreneurial, boosting their incomes by selling second hand items (33%) and making money from a hobby (16%)
  • As living costs continue to bite, consumers are opting for some Christmas cutbacks such as buying less expensive food and going out less (both 25%)

Three in five (62%) Brits are planning to get creative to save costs this Christmas, including making their own gifts or decorations, and offering their time instead of buying presents, according to new research by St. James’s Place (SJP).

As the cost of living continues to put pressure on household finances, SJP’s research reveals the steps individuals are taking to be thriftier during the festive season. A third of those surveyed (33%) say they are buying fewer gifts, with the same proportion choosing to buy less expensive gifts or cap costs with spending limits.

A quarter (25%) claim they will embark on fewer trips to pubs or restaurants over the festive period, 13 % say they will work through Christmas to improve their finances, while one in eight (12%) would like to be given money rather than opening parcels on Christmas Day.

Cost of living means consumers get creative at Christmas

More than one in five women (21%) say that they plan to give their loved ones second-hand  or discounted items, but only 13% of men felt comfortable doing the same. One in eight (12%) aim to make their own homemade presents, although it is only 8% of men versus 15% of women who say they will create their own gifts. Others are offering payment in kind instead, with 5% offering a personal service such as babysitting to save on buying presents. 

Nearly one in three (28%) intend to create or repurpose Christmas decorations instead of purchasing new ones, while 11% are agreeing to do Secret Santa with friends and family to minimise the number of presents they buy.

Others will save on postage costs by hand-delivering cards and presents (17%) and sending e-cards rather than buying Christmas cards (12%).

Entrepreneurial younger generation look for extra income uplifts

SJP’s research also found that a substantial number of Brits – particularly younger people - are proactively boosting their income through second jobs, side hustles or monetising a hobby, which will likely help them fund the Christmas season. More than a quarter (26%) are selling unwanted and second-hand items, for example on eBay, Vinted or at car boot sales, rising to 33% of 18- to 34-year-olds. Among this younger age group, 16% have also turned a hobby into a source of income such as selling hand-made items on Etsy and 9% have monetised their social media.

Additionally, 11% of Brits have taken on additional work for income, such as an extra or part time job, and 10% are doing freelance/ad hoc work on the side. A smaller proportion are also house or pet-sitting (3%), taking in lodgers or renting spare rooms (3%) and renting out their driveways (2%).

Some towns and cities are counting the Christmas cost more than others

Across the UK, there is considerable variation for those surveyed in the big towns and cities when it comes to both cutting back and also finding ways to give. While around one in four, including those in Swansea (26%) Belfast, Brighton, Cambridge, Dundee and Oxford (23%), said they would be giving second-hand item or those on sale or discounted, less than one in ten (9%) in Milton Keynes said they would do so, and only 13% in Newcastle.

When it comes to festive trips to pubs and restaurants, almost two in five in Belfast and Swansea (38%) claim to be cutting them back, but only around one in five in Reading (18%) Plymouth (20%), Newcastle (21%) and London (22%) say they will be going out less to celebrate.

Alexandra Loydon, Director of Engagement and Consultancy at St. James’s Place, says:

“Rising food prices, household bills and mortgage and rental payments mean that, for many people, 2023 has been a tough year in terms of personal finances. While inflation now sits at 4.6%, the lowest annual rate since November 2021, households will continue to feel the pinch for some time, and especially at Christmas when there are extra costs to accommodate.

“Clearly many people are taking matters into their own hands to cope with the cost of Christmas and have come up with creative ways, to be as cost-effective as possible, without stripping back the celebrations too much. Younger people are being particularly entrepreneurial, looking for alternative ways to boost their income, which could help with managing the festive costs as well as budgeting for the year ahead.  It’s inspirational and reassuring to see.

“If you are concerned and struggling to budget, try mapping everything out and setting a festive spending limit. You’ll, be able to manage any unnecessary spending and see where you can cut back, without limiting the fun of Christmas and avoiding a start to the New Year with extra debt.” 

 

 

Notes to Editors

1 - Research conducted for St. James’s Place by Opinium, among 6,000 UK adults between 16th – 25th October 2023.

All results are weighted to nationally representative criteria.

 

About St. James’s Place

St. James’s Place (SJP) is a leading UK wealth management organisation. Founded in 1991, SJP was listed on the London Stock Exchange in 1997 and is a FTSE 100 company with over £157.5 billion funds under management. The company provides face-to-face advice to clients based on their individual needs and circumstances, adapting the advice as requirements change over time to ensure that recommendations remain appropriate.