Seasonal strain: Rising costs set the stage for festive tensions
New data reveals how financial pressures are shaping Christmas 2024, with families split over spending and energy use
As Christmas approaches, rising living costs and inflation—now at 2.3% due to surging energy bills—are reshaping how families celebrate. New data from Raisin UK, a leading online savings platform, reveals how these financial pressures are driving changes in household priorities and sparking fresh sources of conflict.
1. Secret spending sparks partner disputes - nearly half admit to hiding spending from their partners
“You’re being stingy about the kids’ presents while splurging on that gadget for yourself!”
Differing spending habits are a common source of tension over Christmas, with 47% of people admitting to lying to their partners about money, and 23% labelling their partner as impulsive.
“It’s important to have honest conversations about what’s realistic and what’s important,” says Kevin Mountford, savings expert and co-founder of Raisin UK. “Agreeing on a Christmas present or festive budget early on can prevent misunderstandings and ensure everyone is on the same page.”
2. Hosting fatigue and travel tensions - a quarter of families hope to skip hosting to cut costs
“I can’t believe we’re hosting again, when we hosted last year!”
Hosting Christmas comes with financial and logistical challenges, leading 28% of families to avoid hosting altogether, while 22% plan to skip visiting relatives to save money. The expectation to spend heavily on travel, food, and decorations has many families reconsidering traditional gatherings.
“Spreading costs over time and simplifying plans can reduce the stress of hosting” Mountford says. “This year, some families are opting for simpler, more intimate gatherings, focusing on quality time rather than extravagant celebrations.”
3. Thermostat war: heat vs cost - 20% expect heated debates over thermostat use
“Why are you turning the heating on? We can’t afford to keep it running all day!”
Amidst predictions of a bitterly cold winter, keeping the house warm is causing tensions, with one in five Brits anticipating arguments about heating costs. The rise in energy prices, a key contributor to the latest inflation increase, has made household energy use a sensitive topic, leaving families caught between comfort and cost-cutting.
“Small steps like setting timers, layering clothing, or closing curtains at night can reduce heating costs while keeping the home comfortable.”
4. Gift-giving pressure intensifies - 18% expect disagreements over present budgets
“We agreed on a budget for gifts - why did you spend double?”
Gift-giving is a central part of Christmas, but it’s also a major point of tension. Nearly a fifth (18%) of households are bracing for arguments about spending on presents, with over a third (36%) feeling the pressure to overspend. Managing expectations and focusing on thoughtful rather than extravagant gifts can help families avoid conflict.
“Many families are opting for Secret Santa exchanges or setting limits to keep things affordable,” Mountford suggests. “It’s about prioritising what matters - sometimes, a heartfelt gift means more than an expensive one.”
5. Festive lights under financial spotlight - 15% feel the pinch of Christmas light costs
“Do we really need the tree lights on all night? It’s wasting electricity!”
Christmas lights bring cheer to the long, dark winter nights, but rising electricity costs have prompted concerns. With 15% of Brits expressing frustration over the cost of festive decorations, there’s a growing trend towards energy-saving solutions. Opting for LED lights or using timers can create the magic of Christmas without the hefty price tag.
“LED lights are surprisingly affordable to run. Even if they’re switched on every evening from the first day of Advent (3rd December) to the Twelfth Night (5th January) for eight hours a day, the cost is minimal - ranging from just 37p to £3.10*, depending on the type and amount of bulbs you choose,” says Kevin Mountford. “Switching to LED lights and setting timers allows families to enjoy the magic of Christmas without worrying about electricity bills.”
Navigating festive finances
“Christmas doesn’t have to mean financial strain,” says Kevin Mountford. “With thoughtful planning and a focus on meaningful celebrations, families can embrace the joy of Christmas without the stress of overspending. The key is smarter spending, not sacrifice."
About Raisin UK
Raisin is the world's leading platform for savings and investment products. Founded in 2012, the FinTech connects consumers with banks in the EU, the UK and the US. This gives consumers better interest rates and banks a diversified form of refinancing. Our vision is to offer savings and investments without barriers and thus open up the global +140 trillion euro market. Raisin currently employs more than 750 people from over 65 countries worldwide. Today, the platform holds over 70 billion euros in assets from more than 900,000 active customers, which have accrued over 2 billion euros in interest with their investments.
Methodology
The data was gathered using a combination of UK-specific search data over the past 12 months, focusing on search patterns that reflect consumer concerns about the festive season. These keywords were identified through Answer the Public, which seeks to highlight the most asked questions on Google around specific topics.
Search data was then analysed around these consumer arguments, and the search volumes were compared as a percentage to the average number of UK adults above the age of 18, which is 69 million according to ONS data. The volumes were sourced from UK Google searches via keywordtool.io, and are correct as of 21.11.2024. The data accounts for each Google search being undertaken by an individual UK adult.
*The cost of Christmas lights is based on the current energy price cap of 24.5p pWh and the watt usage by Longacres.