Christmas savers are benefitting from careful spending this festive season, surveys have recently revealed.
Britons are planning to slash expenditures by a fifth this year by cutting back on luxuries and giving hand-made presents instead.
A National Savings and Investments survey showed that over half of the people questioned hope to save money by decreasing unnecessary spending such as buying lunch at work or taking taxis, hopefully marking an increase in Christmas savings this year.
Meanwhile 34% plan to make presents, decorations and cards themselves and the majority deem a present spending limit the most effective way to save money. According to the survey, 65% said they had agreed to buy fewer gifts this year.
In an alternative bid to increase savings this Christmas, 22% of people are using personal hobbies to earn money.
According to NS&I, around 61% of people hope to increase their Christmas savings this year by an average of £109.
Savings spokesman at NS&I Tim Mack said “By planning and being more resourceful, our research show that people could save around 20% of their Christmas spend.
“Shopping smarter or setting a spending limit can ensure you still have a merry christmas without a financial hangover.”
John Hughes, director of retail products at The Co-operative Bank commented: “It’s no surprise that consumers are tightening their purse strings this Christmas, but the scale of the cut backs is perhaps surprising.”
Despite these positive statistics, around 5.5 million Britons will be overspending this Christmas; only 20% of the people questioned had set aside money to cover the expense of the festive season, dropping substantially from the 29% result in 2008.