Don’t let the holiday season end in a financial hangover
The festive season may be upon us but watch out that celebrating the season of giving doesn’t land you in unmanageable debt.
Whether it is buying presents or getting the drinks in at the office party, there can be a temptation to keep spending just to keep up.
Research by online bank Marcus by Goldman Sachs has found pressure from social situatons has forced 13% of people into debt.
Its survey found 59% of adults in the UK feel under pressure to overspend in social situations – costing them an average of £270 in the past year.
Furthermore, fear of missing out (FOMO) costs £526 a year on average.
This number rises to £771 for men, compared to £286 for women.
It’s the 45-54 year-old age group who spend the most because they fear missing out, shelling out an eye-watering average of £910 a year, compared to £688 for 18-24 year olds, £477 for 24-35 year olds, £247 for 35-44 year olds and £437 for over 55s.
The research compiled the top 10 social spending regrets:
- Paying a service charge despite poor service (30%)
- Splitting a restaurant bill equally after deliberately choosing cheaper food/drink options (25%)
- Buying a large round of drinks (20%)
- Going on a night out (20%)
- Contributing to gifts for work colleagues (19%)
- Buying a fundraising or raffle ticket out of obligation (19%)
- Paying for a taxi when public transport would have been preferred (17%)
- Buying someone a present (16%)
- Not asking for petrol money when driving friends/ family (12%)
- Attending a wedding (9%)
One golden rule when it comes to spending is to ask yourself if you can afford it and even if you can, do you need it and will you use it.
It is important to have fun over the festive period but just make sure your holiday fun doesn’t end up with a financial hangover come the new year.
