Parents ‘to cut debt by concentrating on kids’

Parents will be tending to reduce what they spend on most family members in order to maintain their giving to children this Christmas, a new survey has found, something which may help those in debt.

Insurer LV= revealed 27 per cent of parents are feeling less well off than a year ago, yet 53 per cent intend to spend at least as much on their children in the festive season as they did in 2009.

The average amount is £168, with north-eastern parents the most generous at £226 and those in the east Midlands the least at £151.

Many will ensure they maintain this by spending less elsewhere, with 62 per cent reducing what they spend on other items.

However, there will be some who do cut back, with 36 per cent saying they are doing so and nine per cent having already advised their children to expect less.

Head of protection at LV= Mark Jones noted children should still have much to look forward to, but advised good budgeting is not just for Christmas.

“Many families will be feeling the financial strain of keeping their kids happy this Christmas, so it’s important that parents try and look beyond the short term and also ensure that they have suitable budgets and long term financial plans in place,” he remarked.

Such planning may help those keen to get debt free in the long run.

The Co-operative Bank also found many people are looking to make spending cuts this Christmas.

Its poll – published this week showed – 70 per cent of people looking to lower their overall festive outlay, although only 18 per cent planned to do this by trimming present spending for their family.

By Joe White