Special report: Christmas and New Year 2016

End of year celebrations at Christmas and New Year represent a time of joy and peace for many people. For others, this season can become rather stressful – not least because of the potential shock to the wallet. Our Christmas and New Year 2016 report reveals a certain share of the population can be tempted to stretch finances almost to breaking point for festivities.

Forever in your debt?
One of the more interesting findings is that the UK and Romania are the countries in Europe most likely to save for Christmas and to spend more this year on presents.

People in these two countries are also more likely to go into debt to do so. In Romania, 16% agree they went into debt to pay for Christmas 2014. In the UK, 15% agree with the statement. More positively, only nine percent of all the people polled say they went into debt for Christmas 2014.

In terms of what individuals plan to spend this year on presents, the amounts cited are little different to the figures from last year’s report. The UK comes out on top, with a median planned spend of EUR420. The US – included for the first time this year, along with Australia – is second overall, with a planned spend equivalent to EUR360. Luxembourg is not too far behind, with a median gift budget for Christmas 2015 of EUR300.

Young people aged 18 to 24 appear to be slightly more frugal than their elders when it comes to buying Christmas presents. Men are somewhat (20%) more likely to say they will pay more on Christmas 2015 than women (13%).

Resolve to succeed financially
Another striking finding is that more than seven in 10 people in Europe who plan to make New Year resolutions for 2016 will include a financial goal. By far the most popular choice of resolution is “I want to save more” – 41% of people in Europe who plan to make a resolution for 2016 selected this option.

Second choice among people in Europe, the US and Australia is “I want to reduce my debt”. Money resolutions are most popular in Turkey, where 86% of people polled who say they’ll mark New Year 2016 this way choosing to do this. The Netherlands takes a number-two spot, with 82% of resolution-makers planning to focus on money matters in January 2016. People in Spain appear the least likely to opt to make a finance-based New Year resolution for 2016.

Could making a resolution be a good way to improve one’s financial situation? About 52% of people in Europe say they managed to keep financial New Year resolutions made in 2015, while 48% admit they did not. A New Year resolution may be just one way of using a special occasion for “mental accounting” to make a plan or a fresh start – and the value of such goal setting is well known.

Our survey does confirm that many people in Europe, the US and Australia aim to plan well ahead of time for this typically busy time of year. This suggests a great many people are in fact rather prudent and careful about festive finances.