Money v gifts for family and friends

Almost half (46%) of Irish consumers would prefer to send money to family/friends so they wouldn’t have to buy gifts this Christmas. This preference was most popular among Gen Z respondents (50%).

The research from PayPal found that more than three-quarters (78%) would prefer to spend quality time with friends and family rather than buying them gifts this Christmas.

This time, Gen X was most inclined to express this sentiment (81%).

Despite the implied desire to move away from the tradition of buying Christmas gifts, the average expected spend per person on presents came in at €525. When it comes to the counties, people from Carlow (€780), Kildare (€692), and Meath (€674) expect to spend most. In Cork, the average spend on gifts is expected to be €462.

Furthermore, 49% of people surveyed feel under pressure to spend more than planned/budgeted based on what others are spending.

It also appears people are eager to get their Christmas shopping, with two-thirds (66%) predicting they will have theirs finished by the second week of December. Just 14% appear to be last-minute shoppers, completing their purchases during Christmas week or on Christmas Eve.As well as gifting, 47% of Irish consumers surveyed expect to spend more on social events and gatherings this festive season.

The average anticipated spend was estimated to be €339, with respondents from Kildare (€428), Dublin (€385) and Mayo (€376) set to spend most on such outings.

In Cork, the average spend on social outings is expected to be €353.

Sharing is caring

Given the expectations around spending, there seems to be a shift towards sharing the load – and cost – when it comes to gifting. 63% of Irish consumers surveyed will engage in bill-splitting or group purchases. The top bill splitting activities were revealed to be nights out (47%), family gifts (37%), and Christmas dinner (35%).

At the other end of the scale, 45% revealed that they have previously not been paid back by friends or family for a gift or activity during the festive season. Moreover, 58% felt too awkward to ask for money they were owed!

Something people aren’t feeling awkward about is loud budgeting or being honest with others about their finances – with 47% saying they would feel comfortable telling friends or family they haven’t budgeted for a specific activity or gift and almost a third (32%) having told friends as much previously over the festive season.

Jonas Breding, General Manager Northern Europe, PayPal, said: “While it is a time of year when people are spending and when some are feeling more financial pressure than usual, people’s preferences and behaviours are changing. As well as more convenient and cost-effective ways of treating friends and family at this time of year, people are also opting to do activities with, rather than buying things for their loved ones.

“Consumers in Ireland want to make the most of the festive season, but they also want to be smart and realistic regarding their budgets. We know that being able to send money or split bills via person-to-person payments is important, as well as feeling empowered and vocal when it comes to priorities for this festive season.”