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Savings to dwindle as Christmas approaches

06 November 2010 / by Rachael Stiles

Savers are not hopeful for the prospects of their savings balances in the run up to Christmas, according to research from NS&I.

The British population is feeling "pessimistic" about its ability to save money for the rest of the year, a survey found, with a quarter admitting that they are less likely to save in the autumn months.

Seven per cent of those feeling pessimistic said they are much less likely to pay into their savings accounts as Christmas approaches, bringing with it the usual expense of presents, food, and entertaining.

But, there is less pessimism about saving now than there was this time last year, when more than a third said they were less likely to save in the last few months of the year.

Tim Mack, savings spokesman at NS&I, urges Brits not to leave all their Christmas shopping until December, but to spread the cost over a few months to ease the financial burden.

"It's daunting to think that there are just two months to go until Christmas. However, it is best to try not to pay for everything out of December's pay packet and instead to plan early, agree the priorities for a good festive season and spread the financial outgoings over a longer period," he said.

Almost a third of respondents confessed that they overspend every month, so Mr Mack suggests reining in spending now to put aside a bit extra, to "help the festive celebrations be more financially manageable this year."

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