Spending on a loved one may see consumers developing financial difficulties, it has been suggested.
In research released by Abbey, typical Britons splash out hundreds of pounds on their partners every year. However, with an average of 1,569 pounds being spent per annum those who do not plan their budgets wisely may well see their ability to manage their money come under strain as they struggle to meet other demands on their day-to-day spending, for instance credit cards, personal loans and overdrafts. The study also indicated that 5.9 million people believe that their partner does not spend enough money on them, with 792,000 splitting up for this reason.
According to the firm, a “staggering” 1,040 pounds is taken up via eating and drinking, both out and at home, while some 224 pounds per year is spent on dates such as trips to the cinema, theatre and day excursions. Meanwhile, Christmas and birthdays – perhaps obvious times for spending on loved ones – account for 133 pounds and 95 pounds respectively.
Commenting on the figures, Steve Shore, head of banking for Abbey, said: “Love doesn’t come cheap. It costs over 1,500 pounds a year to be in a relationship and love keeps on getting more expensive as you get older.”
Research from the financial services firm also revealed that those living in the south-east of England could be set for the most pronounced difficulties in meeting loans and other borrowing repayments as a result of spending on their loved ones. Consumers from this part of the country were revealed to be splashing out the most at an average of 2,031 pounds. This compares to people living in the north of England, who with a typical expenditure of 1,285 pounds per annum, are spending the least amount of money on their partners. Meanwhile, money management problems may be rising for men as they are paying out 1,830 pounds every year. Women, on the other hand, have a typical expenditure of 1,307 pounds for their loved ones.
As a result, those people who are worried that their loved ones and other demands on their spending are causing them to struggle in managing their finances may wish to consider opting for a personal loan. Earlier this year, Sean Gardner, chief executive of MoneyExpert, advised that although few Britons are likely to get into debt difficulties due to spending a high amount of money solely on presents, “it’s worth considering whether it’s really necessary to buy expensive gifts when a small gesture can go a long way”.
And with consumers said to be “coughing up more than ever before” he urged them to take a moment to ponder their capacity to manage their money when considering buying a gift. His comments come after research from the company showed that the typical Briton spends 3.5 per cent of their salary on their partner. Watches, computers, digital cameras and jewellery were revealed to be some of the most popular gift choices. Once again, men were revealed as potentially having the greatest difficulty in servicing their finances due to gift buying, as they splash out some 71 pounds per month, with a low-rate loan one way of helping them to manage their spending.