A third of Brits look set to spend nearly 10 per cent of their savings on Christmas this year, according to new research by Abbey Savings.
In the lead up to the festive season, Abbey suggests that 32 per cent of savers will spend a total of £3.45billion on their Christmas shopping, which is an average of £221 each.
However, while a proportion of Brits intend to use their savings to cover the cost of Christmas, 59 per cent of Brits intend to cut back on their spending this year, with gifts for family and friends first on the list of cut backs.
Second on the list is socialising, with almost a quarter of people saying they plan to reduce their spending on drinks, parties and meals.
Meanwhile, in a further bid to reduce the financial burden of the festive season, almost one million Brits have said they intend to return gifts they receive in exchange for cash.
Commenting, Reza Attar-Zadeh, director of savings & investments at Abbey Savings, said: "It's clear that many people are planning ahead and scaling back this Christmas in an effort to reduce their spending, which seems a sensible move.
"We know that people still rely on their savings to cover many of their Christmas outgoings but savings shouldn't just be for Christmas, and we encourage people to keep a healthy balance, so that they're starting the New Year from a good base."
However, while many people are using their savings to help cope with the added costs that Christmas brings, Abbey has found that nearly 40 per cent of Brits are currently saving nothing at all, while one in five people claim to have no savings whatsoever to fall back on.
Urging people to save, Reza Attar-Zadeh added: "Whether savers decide to put their money aside for the long term, for a specific purpose such as a Christmas or a holiday, or for emergencies, the most important thing is to work out a plan of action that works for them – then choose the right accounts to suit their needs."
© Fair Investment Company Ltd