The findings reveal creative and determined strategies families are using to make the holidays special, even amidst financial pressures.
The Financial Reality: Rising Costs and Budgets
Parents in London are spending an average of £198 per child on Christmas gifts, highlighting the significant financial outlay that accompanies the festive season. This expense is felt more acutely as 85% of London parents report that the cost of Christmas for their children has increased in recent years.
To cope, many families are taking a more structured approach to spending, with 73% of London parents setting a dedicated budget for Christmas gifts. However, despite these efforts, many admit to exceeding their budgets, underscoring the challenges of balancing festive cheer with financial limitations.
Adapting to the Challenges
The rising costs have prompted families to make difficult decisions. Nearly half (45%) of parents in London reported cutting back on other areas of household spending to afford festive gifts for their children. From reducing dining out expenses to postponing non-essential purchases, these sacrifices illustrate the lengths parents go to for their kids.
Beyond gift-giving, families are finding creative ways to make the season joyful without overextending their finances. Many are prioritising free or low-cost activities, such as attending local holiday events, crafting decorations, or baking together. Others are relying on the support of friends and family for childcare to save money during this busy season.
Tips for Tackling Family Costs
To adapt to the rising costs of parenthood, parents across the UK are sharing resourceful strategies that can inspire other families to make the most of their budgets:
Embrace Free Activities: Over half (51%) of parents find creative, free activities for family fun, proving that some of the best memories don’t come with a price tag. From local libraries to youth clubs, browse your local council website to source free activities.
Seek Second-Hand Finds: From clothes to toys, 37% of parents opt for second-hand purchases, showing that quality doesn’t have to mean brand new. Charities like Oxfam and the British Red Cross offer excellent selections of second-hand gifts.
Tap into Support Networks: For childcare needs, especially during holidays, one-third (33%) of parents turn to trusted friends and family for help, underscoring the power of community support. With rising living costs, many parents are encouraging expectant families to plan ahead. From starting a savings plan to budgeting and taking out life insurance, Legal & General’s survey highlights practical steps families can take today to prepare for the future.
While financial pressures are high, parents remain committed to creating memorable holiday experiences for their children. By setting budgets, cutting back in other areas, and embracing affordable traditions, families are navigating the festive season with resilience and ingenuity.
To learn more, please visit: https://www.legalandgeneral.com/insurance/life-insurance/hidden-cost-of-raising-kids/