More than 2,000 UK consumers were polled for Sitecore’s Holiday Shopping Trends report, which found that 41 per cent were worried a lack of funds would crush their seasonal plans.
The majority of UK shoppers (75 per cent) have said they will purchase cheaper gifts, while 42 per cent of parents admit that they are only planning on buying presents for their children this year.
Elsewhere, 42 per cent are cutting back on socialising, such as eating out with friends, a figure that rises to 47 per cent (nearly half) for millennials.
Nearly a quarter of adults (24 per cent) are selling personal possessions on online marketplaces, such as eBay, while 17 per cent are cutting back on subscription services such as Netflix and Amazon Prime.
And more than a third (34 per cent) of Gen Z, and 23 per cent of millennials, are taking a second job or working more hours to pay for Christmas costs.
Despite the cost-cutting, Brits refuse to scrimp on alcohol (47 per cent), a turkey (44 per cent), and spending time with the family (44 per cent), however.
It’s estimated that spending on non-essentials this Christmas will plummet by £12bn this year.
The news follows a report by The Prince’s Trust which found that nearly half (46 per cent) of young people are worried they won’t be able to afford food this winter.
Of those polled, a quarter admitted to skipping meals to cut back on spending, while 14 per cent said they had used a food bank at least once in the past 12 months.
And a third of primary school teachers are struggling to afford food, with nearly 30 per cent stating that financial pressures are impacting their ability to do their job well.
New data shared by the Office for National Statistics shows that a staggering 91 per cent of adults have reported an increase in their living costs compared with a year ago, while almost three-quarters (73%) say that costs have become more expensive in the last month alone.