The average budget of Slovaks for Christmas gifts this year fell to 216 euros, which is almost a fifth (17%) less than last year. This is the most significant reduction of the Christmas budget in the past ten years. This follows from the current edition of a representative survey by the Focus agency for the company Partners, which annually monitors how Slovak households experience the most expensive holidays of the year.
“Christmas remains, but financial security is waning. The decline isn’t that people want to have a more modest holiday, but rather that financial concerns have pushed traditional holiday generosity to the back burner. When people perceive risk, they tend to cut back on big purchases, choose more practical gifts and plan ahead more,Martin Slosiarik, director of the Focus agency, said on Friday.
The survey also showed differences according to income groups. Households with a net monthly income of up to 1,000 euros plan to spend 156 euros on gifts, while those with a higher income plan to spend approximately 266 euros. “We see that even households from the middle income range today approach the holidays more moderately. This shift to a more frugal regime is typical for periods of recession or increased economic uncertainty,” he explained.
Slovaks stick to traditional gifts when shopping this year as well. According to the survey, they most often plan to donate cosmetics, clothes and cash, which is stated by about a quarter of the respondents. The first five are completed by books and toys, which less than a fifth of people want to donate. A fifth of the respondents do not yet know what to donate, or do not donate anything.
The way Slovaks buy gifts has also changed. Up to 40% of respondents plan to shop online, while 39% in brick-and-mortar stores. This is the largest shift in favor of e-shops in history, and for the first time in the history of the survey, online purchases have overtaken those in brick-and-mortar stores.
The survey also includes a Christmas shopping basket, which from 2020 maps the development of food prices and other items associated with the preparation for the Christmas holidays. “Inflation and the increase in food prices were also reflected in Christmas costs this year. Our Christmas basket shows that the costs of classic holiday preparation – baking, dinner and decoration – have increased by approximately 4% this year and reach an average of 352 euros,” explained personal finance expert from Partners Ivana Mikitová.
From the point of view of financing, this year, according to the survey, Slovaks approach Christmas with more caution, plan more and spend more carefully. Almost half (45%) of those questioned save for gifts in advance, another third (35%) pay for them from their paychecks and a quarter (27%) from their savings. Only a few (3%) plan to borrow.
“This year it’s all about moderation and balance – less money, more planning, minimal debt. It turns out that responsible financial habits are slowly but surely taking root even during the Christmas season. We see a shift towards responsibility – people spend wisely, prepare in advance and don’t want to find themselves at zero after the holidayse,” assessed Mikitová. The survey confirmed that up to 71% of households plan to keep at least a basic financial reserve after Christmas.
