More modest Christmas budget for young Finns this year

Nordea's survey indicates that Finns calculate on spending some EUR 530 in the
forthcoming holiday season. Finns plan to spend around EUR 300 on Christmas
presents, but compared to last year, 10 per cent less will be spent on food,
decorations and other Christmas-related shopping. The Finns will clearly be
spending less than in 2007, when the seasonal average was EUR 650.
 
Money for Christmas spending comes mainly from regular income and tax returns,
though one in five of the respondents will use savings.
 
The people in eastern Finland will spend the most on Christmas presents, almost
EUR 320, while residents of western Finland will only spend just over EUR 270.
Those aged 16 to 25 years have the tightest present budgets, and plan to spend
EUR 106 on presents - over 30 per cent less than last year. There are budget
increases, however, mainly in households of 26-39-year-olds who estimate to
spend 12 per cent more than last year on presents
 
- Unemployment of young Finns is a probable cause of the dramatic drop in the
youngest age group, says Anu Numminen, Nordea's Private Economist.
 
Christmas can still be celebrated on smaller budgets
 
In all income categories, less money than last year will be spent on food,
decorations, clothing and other Christmas expenses (excluding presents and
travel).
 
- Surprisingly however, the survey shows that high-income earners will cut their
costs the most, says Anu Numminen.
 
Inhabitants of southern and western Finland intend to spend the most on
Christmas celebrations, about EUR 230 per person. People in northern Finland
plan to spend the least, ie EUR 214 per person. The drop in northern Finland is
significant, since this region spent the most last year at Christmas, about EUR
260 per person.
 
- I believe that the general instability in the market is to some extent
reflected in consumer behaviour as well. The currently huge loan packages
featured in the news, aimed to help the excessively indebted countries, worry
some consumers and may indicate a tightening of belts in many households, just
in case, says Anu Numminen.
 
This information is revealed by a survey commissioned by Nordea from Synovate,
for which over 1,300 Finns aged 16-65 years were interviewed. This sample
reflects the consumption intentions in Christmas 2010 of more than 3.5 million
Finns when proportioned to the entire population.
 
For further information:
Anu Numminen, Private Economist, +358 9 165 88218,anu.numminen@nordea.com
Anni Kuusisto, Group Identity and Communications Finland,
+358 9 165 42653,anni.kuusisto@nordea.com
 
[HUG#1468013]
 
Christmas budget 2010: 
http://hugin.info/3068/R/1468013/405607.pdf
 
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Source: Nordea (Finland) via Thomson Reuters ONE