Finns spending more for Christmas
3.12.2009Finns estimate this year’s Christmas expenses to be about 550 euros, 4 per cent more than last year. The 300 euros spent on Christmas presents last year is the same this year, but Finns intend to spend about 10 per cent more on other Christmas-related purchases such as food and decorations. Nevertheless, the Christmas budget falls far short of the 650 euros Finns spent in 2007.
The Nordea survey shows that the primary sources for Christmas spending are the same as last year: regular income and tax refunds. Every fifth respondent is also planning to use part of their savings for Christmas purchases. Credit cards are favoured by people with high income and big city dwellers at this time of the year.
When it comes to Christmas presents, those planning to spend the most live in eastern Finland. They intend to spend 310 euros, whereas people living in western and southern Finland only intend to use less than 280 euros. The ongoing recession has been most hard felt by respondents with low incomes, who estimate that they are going to use 160 euros on Christmas presents, 8 per cent less than last year. On the other hand, households with average incomes intend to increase the sum they use on Christmas presents by 10 per cent to nearly 310 euros and households with high incomes by 6 per cent to more than 410 euros.
Every fourth Christmas present budget cut by recession
One in four respondents will spend less on Christmas presents than last year.
- A third of them will spend less on presents this year due to lower income. This was especially true for households with low income, ie, those earning less than 30,000 euros a year. Then again, every fourth respondent intending to cut down on Christmas shopping now considers saving money more important than before, says Anu Numminen, Nordea’s Private Economist.
Christmas mood not compromised
Households across all income classes intend to spend more than last year on Christmas cooking, decorations, clothes and other seasonal expenses, excluding presents and travel expenses, but it is households with average or high incomes who increase their spending the most. They plan to spend almost 20 per cent more on Christmas than in 2008. The inhabitants of northern Finland will spend the most on Christmas, about 260 euros per person. The least money is spent in western Finland, 225 euros per person.
- Purchasing power among consumers who have not lost their jobs is actually quite good at the moment. This becomes evident in this survey’s results, too, says Anu Numminen.
- Record-low interest rates have reduced loan costs, and people can use more money on Christmas preparations than last year. At any rate, you should keep in mind when shopping for Christmas that Christmas only lasts for three days. January, however, may feel rather long if you have spent almost all your money on Christmas. The best Christmas mood comes from relaxing and enjoying the company of your loved ones - and this is free of charge, says Anu Numminen.
This survey was conducted by Synovate on Nordea’s commission. Over 1,000 people between 16 and 65 years old were interviewed in Finland, Sweden, Norway and Denmark at the beginning of November.
For further information:
Anu Numminen, Private Economist, +358 9 165 88218
