Did you use your savings to pay for Christmas last year?

If so, you are not alone.  Recent research has found that thousands of Brits used money from fixed rate bonds, ISAs and instant access savings accounts to meet the cost of their Christmas festivities in 2010.

Christmas can cost hundreds of pounds

Christmas can be an expensive time.  Research from the BBC found that the average cost of Christmas in Wales in 2009 was £784, and so it is no surprise to see that people have to dip into their savings to pay for gifts, entertainment and the Christmas dinner.

The Daily Telegraph recently reported that a total of £1.9 billion was spent on credit cards before Christmas on presents, food and drink.

Brits using savings to cover the cost of Christmas

According to a recent study published by Birmingham Midshires Savings, Britons covered just under a quarter – 23 per cent – of their entire expenditure over the festive period by dipping into their savings accounts.

However, many other Brits covered the cost of Christmas from their own resources.  Just over a fifth – 21 per cent – indicated that they had no savings at all to help cover the cost of Christmas, while ten per cent of respondents said that they had met the full cost of the season by gradually building up their savings accounts throughout 2010. 

Whether it is for Christmas or for other reasons, a recent Legal and General survey found that 69 per cent of Britons are planning to save money in 2011.

John Bianco, head of products at Birmingham Midshires savings, observed: “It’s encouraging to see savers planned ahead and have started the New Year with confidence.” 

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