Average cost of Christmas for people in Wales is £784

The Principality thinks Wales is 'out of step' with UK Christmas spending

People in Wales are planning to spend an average of £784 on Christmas this year, according to a financial survey.

More than 25% of people will spend between £1,000 and £5,000, while 40% plan to spend more than a year ago.

The savings and spending survey by the Principality building society looked at how, or if, people were budgeting for Christmas spending.

The British Retail Consortium said there was unlikely to be a "spending bonanza" in the current climate.

The survey is the first of a quarterly questionnaire commissioned by the Cardiff-based Principality to give regular snapshots of saving and spending habits in Wales.

Researchers questioned 607 people in Cardiff, Swansea, Newport and Wrexham.

They found people were not letting the economic downturn ruin their Christmas festivities.

Fewer than five in 100 reported they were likely to spend less on the festivities than a year ago.

Kate Murray is spending £350 on one present alone

More than half of people will either put money aside regularly to pay for Christmas or dip into existing savings, rather than use credit cards.

Graeme Yorston from the Principality said Wales was "slightly out of step" with UK Christmas spending reports.

"Christmas is a time when we all want our families to look good, eat well and have a good time, but it's encouraging to find that people are content to spend within their means rather than turning to loans or credit cards to fund this expensive time," he said.

"Preparation is key, and putting money aside regularly throughout the year really helps to ease the burden."

One person who has followed this advice is Kate Murray, a 22-year-old financial services worker from Cardiff.

She explained: "Last Christmas I didn't get everything I wanted to get so I opened a regular saver account in readiness for this year."

Kate, who lives in her own property, put around £50 into the account each month, giving her an extra £600 to spend this time round. She has also had a promotion in work, which has helped her financial situation.

She is expecting to spend around £1,500 this festive season, with £1,200 of that going on presents.

She will be buying for more than 10 people, explaining that with her parents having separated years before, she has brothers and sisters on both sides, and will also buy for her boyfriend and friends.

It would be surprising given just how poor sales were last year if sales this year weren't up Richard Dodd British Retail Consortium

The largest single spend will be £350 on one present. She will also buy some food and drink for the festive period, although will have Christmas Day at her mother's.

On the social side, she added: "I have got four Christmas parties - I have family, friends from school and a couple of different ones from work."

And does she expect to receive gifts equal in value to the amount she is spending?

She admitted: "I'm quite spoilt by my parents if I'm honest and I'm sure my boyfriend will spoil me."

But Richard Dodd from the British Retail Consortium sounded a note of caution.

"It would be surprising given just how poor sales were last year if sales this year weren't up," he said.

"But that doesn't mean we're going to have any kind of spending bonanza because customers are still worried about things like jobs and what's going to happen to housing costs as a result of interest rates."

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