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MBNA news

Date: 21st Dec 2015 | Posted in: Financial News, News

Grandparents set to spend almost £3 billion on gifts this Christmas

  • Up to £3 billion1 could be spent by the nation’s 14 million grandparents on gifts for grandchildren over the festive period in 2015, study shows
  • Grandparents will spend an average of £74 on Christmas gifts for each grandchild

The nation’s 14 million grandparents could spend as much as £3 billion on presents for their grandchildren this Christmas, a new MBNA study reveals. 

Grandparents polled across the country say they will spend an average of around £74 on each of their grandchildren this year.

Londoners top the spending poll, averaging more than £111 per grandchild, followed by the North East (average spend of £100), Scotland (£93), the East Midlands (£82) and Wales (£79).

“Our research shows that significant sums will be spent by the country’s generous grandparents this year, much to the delight of many grandchildren no doubt”, said Richard Whatmough, director of Marketing and Digital at MBNA. 

More than 14 per cent of grandparents say they plan to spend more in 2015 than they spent in 2014, with only 5 per cent looking to cut back on last year’s spending.

The in-depth study of grandparents’ spending habits2 was commissioned by MBNA to promote its Everyday Plus American Express® Credit Card, which was launched earlier this year to help make life easier for consumers to manage their finances throughout the year.

The survey shows that grandparents plan to spend around £683 in total on Christmas this year. Many will opt to pay for presents for family and friends using their monthly income, savings or a combination of both this year, with around 20 per cent planning to spread the cost of Christmas using a credit card. 

“If spreading the cost of Christmas is important this Christmas, then we hope people will take the time to consider the range of products and services we provide at MBNA,” added Whatmough.

The MBNA Everyday Plus American Express® Credit Card has no annual fee and there are no fees for money transfers, balance transfers and ATM usage in the UK or abroad. It is among a number of credit card options available to apply for now at https://www.mbna.co.uk/.

Representative example: 7.4% p.a. (variable) on card purchases. This is equivalent to 7.4%APR representative (variable). Based on a credit limit of £1,200.

MBNA’s eligibility check allows customers to check how likely they are to be accepted for the card before completing the full application. Alternative products at either 9.9 per cent p.a. or 12.9 per cent p.a. may be offered, subject to status.

The card is part of a commitment by MBNA to offer a broad range of products that help make life easier for consumers to manage their finances. Credit is available, subject to status, to UK residents aged 18 and over.

1 Source reference for “14 million grandparents” is The Grandparents Association: http://www.grandparents-association.org.uk/grandparenting/grandparenting.html
Average number of grandchildren in the MBNA survey is 2.88; the average amount spent by grandparents per grandchild in MBNA study is £73.96; and the number of UK grandparents is 14 million (2.88 x 73.96 x 14,000,000 = £2,982,067,200)

2 Consumer Intelligence conducted the grandparents Christmas spending research study of 1,281 UK grandparents between 5 and 15 November 2015 on behalf of MBNA.