Counting the real cost of Christmas

Christmas can be one of the happiest times of the year for many families, but it can also be one of the most expensive.

The perception about Christmas or this festive season is breathtaking and varies with age.  A survey by Prosper Magazine indicates that the perceptions of the festive season depend on the age, cultures, customs and ones’ responsibilities. The hype and sentiments attached to it also depend on one’s priorities with a belief that it has been commercialised.

At the beginning of the year, it is surprising how little or nothing is said about how much will be saved and spent on Christmas. The thought of the costs to be incurred around the festive season arise as the festivals draw closer.

The cost of Christmas sprouts a debate that might never end but leaves a lot of unanswered questions such as the cost of Christmas. Is it a myth or just the culture? And how much is spent during this time? Is it something that one plans for at the start of the year or it is some sort of bandwagon effect?

Ms Allen Mayanja, a house wife in her mid 40s, and mother of five insisted on reminding her husband to give her money to purchase a gomesi (Buganda traditional wear -suit) for Christmas.

“I need to ask Mr Mayanja for money to purchase a dress for Christmas,” she says, noting that if she fails to purchase one for herself, at least she will try harder to ensure that she buys for her children.

“Without fun or spending, there is no Christmas. It (Christmas) is a spirit and culture bestowed upon us by our great grandparents and has to be passed on to other generations. No matter the situation, it is about family, giving, sharing and merry making,” Ms Mayanja says.

Despite the harsh economic environment worsened by the Covid-19 pandemic, Ugandans have taken trips to their villages for Christmas.

She recalls that back in the days about 80 percent was spent during festive seasons. Today, only 60 percent is spent. 
Expenses have also reduced. 

Some shoppers are turning their backs on huge food budgets that see loads of food either going to waste or being thrown away the folowing day. This is as a result of reduced income. 

Cons of Christmas Costs

The challenge is many people struggle to resist the urge to overspend on food in just a day. But some have found a creative way around it by tucking money away ahead of Christmas. 

“To reduce the costs, our women’s Sacco consisting of eight members within the area, decided to save Shs5000 every weekend for 58 weeks ( for a year). This means that towards the Christmas season, everyone would have saved about Shs280,000,” she reinstates.

This she says will enable everyone in the group to have something to spend whether on food items or any other thing they wish and hence reduce the burden or pressure that comes with last minute wasteful spending.

Whereas a number of people look forward to spending during the festive season, others have to wait a little longer for the coming year to spend.

Mr James Balikuddembe, within the media space, has never thought about spending in December.
 He believes there is a lot of giving and sharing during this time that he can save his money for January when everything is at a stand still and when almost everyone is broke since they spent most of their money during the festive season.

“In December, I try to be conscious with my money. That means I spend less and get more from people willing to help,” Balikuddembe says, adding that the hype is uncontrollable. If you have some money, you can’t  fail to send some to your parents or go to the bar to have some drinks. But as you do this, remember January is around the corner and resources will be limited.

However, to avoid the hassle in January; Mr Balikuddembo watches his consumption habits, finds gigs and ensures that he pays for rent for January, December and February in advance to avoid the hype. I get gigs and pay my rent earlier such that I only spend on transport.

Around January 15, no one is willing to offer help financially because most people are struggling.

Statistics

In line with this exciting time or Christmas holiday and the costs, WorldRemit conducted a multi-country study to determine the true cost of Christmas in 14 countries, mining data to showcase the average costs of traditional Christmas meals, decorations and gifts.

Of the 14 countries observed, data showed Rwandans are most impacted by the disparity between average household income and holiday costs, spending 708% of their monthly income and nearly 60 percent of their annual income on the holiday.

Meanwhile, the study indicates that Ugandans spend 80 percent of their monthly income on festive costs.
 “Filipinos spend 257% of their monthly income on the holiday. In the region, Christmas celebrations begin in September and extend into January, making it challenging for many families to afford the basic costs of Christmas. Without remittances into countries like the Philippines, celebrating Christmas would be near impossible,” reads the study in part.

The report adds: “During the holidays, immigrants and overseas foreign workers are often unable to celebrate with their families in-person, and find themselves working to support not only themselves, but also their families and communities back home.”

It further indicates that Christmas is one of the primary reasons immigrants and migrants send money back to their home country because of the high cost of coveted seasonal items, food, and the overall impact Covid-19 has had on supply chains and inflation, it is vital for remittance senders to support those dearest to them by helping make Christmas a reality for their loved ones.

 For example, of the 14 countries that typically receive remittances, 10 spent more than 50% of their monthly household income on the holiday. A holiday that would be impossible without remittances, the season of giving becomes vital, where the world’s largest send markets typically only spend less than 3% of their annual income on the holiday.

Views 
A number of people, researchers and marketers agree that Christmas should be about spending.
This year is not different. Coming from two years of lockdown due to the Covid 19 pandemic, many believe it is a time worth celebrating.

Mr Jude Kansiime, head of marketing dfcu bank, concurs that it is during such seasons that we see a change in terms of spending patterns especially for our customers.

“We are seeing a spike in this period but that is as a result of the effects of the Covid 19 pandemic. Over the last 18months or so, the consumer levels have been severely affected,” he explains.

He notes that if you are comparing quarter on quarter, you will probably see an increase spent from the consumer point of view but if you are to compare the pre- pandemic period 2019 visa vie 2021, spending will be subdued because generally households have been impacted by Covid-19.

“Consumptive spending tends to go up because it is a seasonal factor. It has been a difficult year for everyone so a little bit of celebration will not be bad as long as they are within limit and following the standard operating procedures to ensure we all stay safe especially now that there will be re-opening of the economy in January,” he says.

Covid 19 disruptions & cost implications
Mr Benjamin Mukiibi, manager, researcher and strategy, Uganda Retirement Benefits Regulatory Authority (URBRA), says the festive season is that time of the year where people really spend their money.

This differs in age. For instance, those with more responsibilities do not spend much because they have obligations such as school fees.

“Many households have had a drop in expendable income. This means their disposable income is low and they must be cautious about their consumption and expenditure habits,” he says. The pandemic and its implications has made people re-think their norms and culture with a view of saving and investing for the future.