Families around the world spend 156% of monthly income on Christmas - WorldRemit Data (2024)

LONDON, Nov. 17, 2022 /PRNewswire/ --Families around the world will spend up to 156% of their monthly income on Christmas this year, according to latest results from the WorldRemit Cost of Christmas study. The study found that households in Lebanon will pay the highest amount compared to their average monthly income (688%) while families in The Netherlands will be least financially impacted, with costs only accounting for 19% of the average household's monthly income.

In its second year, the findings are part of WorldRemit's 2022 Cost of Christmas Study, which observes how the changing macroeconomic environment affects the cost of standard Christmas elements, including the main holiday meal, average gift spending and decor, across 23 countries. In addition to the 14 countries from the initial study, 9 new countries were observed this year to further understand the ways different cultures celebrate, and budget for, the global holiday.

Year-over-year findings

The 2022 findings reveal the average seasonal increase across the five developed countries observed was 33%, with the UK seeing the greatest change, as prices rose more than 60% year over year. This cost is brought on by the drastic and sudden increase in inflation, which has forecasters predicting more extreme costs this season.Of these nations, France is the only country expected to save this year, with an 11% cost reduction across items observed.

Of the remaining nine countries indexed, the average costs increased by 9%, while changes varied widely. While India (-2%), Kenya (-17%), and the Philippines (-38%) saw a reduction in costs, Cameroon (+56%) and Uganda (+34%) will see substantial increases. Of these countries, India was the only nation that can expect to spend less than an average month of income (99%).

Across the 14 countries observed in both 2021 and 2022, the increase in costs was, in part, attributed to a significant rise in food prices. This categorical change, which saw the highest increase (50%) across categories, means families will likely need to shift their budget to accommodate for the increased meal prices. These findings reflect similar conclusions drawn in WorldRemit's recent Cost of School and Cost of Living studies.

WorldRemit added nine new countries to the annual index this year. Of these, Zimbabwe will be most impacted when compared to their average monthly household income, as most families can expect to pay more than 2.6 times their income on the holiday. In contrast, South Africa will only spend US$172 or 45% of their monthly income, on overage, on the holiday.

Methodology

In the study, WorldRemit looked at the following countries:

• United States of America
• United Kingdom
• Canada
• France
• Australia
• Cameroon
• India
• Lebanon
• Nigeria
• Rwanda
• Uganda
• Kenya
• Philippines
• Mexico
• Germany
• Netherlands
• Zimbabwe
• South Africa
• Fiji
• Spain
• Colombia
• Dominican Republic
• Guatemala

The Christmas items were selected based on desk research of typical Christmas meals, gifts and decorations. We then researched the average price of each item for an average family on an average income. The prices were researched online in late October 2022 - November 2022.

The exchange rate from the local currency was calculated on October 24th, 2022. The percentage figures are percentages of the overall budget in the local currency.

About WorldRemit

We're a leading global payments company and, along with Sendwave, part of Zepz, a group powering two global payments brands.

We disrupted an industry previously dominated by offline legacy players by taking international money transfers online - making them safer, faster and lower-cost. We currently send from 50 countries to recipients in 130 countries, operate in more than 5,000 money transfer corridors worldwide and employ over 1,200 people globally.

On the sending side WorldRemit is 100% digital (cashless), increasing convenience and enhancing security. For those receiving money, the company offers a wide range of options including bank deposit, cash collection, mobile airtime top-up and mobile money.

Backed by Accel, TCV and Leapfrog – WorldRemit's headquarters are in London, United Kingdom with regional offices in the United States, Poland, Canada, Australia, Hong Kong, Singapore, Malaysia, the Philippines, South Africa, Somaliland, Uganda, Kenya, Rwanda, Tanzania, Zimbabwe and Belgium.

www.worldremit.com

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SOURCE WorldRemit