Prioritising Presence Over Presents in 2025: A Changing Christmas in Scotland
New research from financial wellbeing brand Loqbox has revealed a significant shift in how families across Scotland are approaching Christmas 2025. With cost of living pressures continuing to shape household budgets, many Scots are rethinking what matters most during the festive season. The result is a Christmas that feels more meaningful, intentional and focused on people rather than purchases.
According to the data, four in ten adults in Scotland plan to buy fewer gifts this year. A quarter say Christmas has become too materialistic. Rather than diminishing the festive spirit, this shift highlights a desire to return to the heart of the season. When asked what truly makes Christmas feel special, only 7% said presents. A much larger 63% said quality time with loved ones mattered most.
How Scots Are Coping With Rising Costs This Christmas
The findings show how households are trying to balance enjoyment with financial pressure. Forty one percent of Scots plan to reduce the number of gifts they buy. Another 40% will look for more budget friendly alternatives. A further 40% say rising costs for gifts, food and travel take the shine off Christmas.
Many people still enter the season without a clear spending plan. Six in ten Scots do not set a Christmas budget. This helps explain why 57% turn to credit cards, loans or Buy Now Pay Later products to cover costs. Hosting brings additional strain. One in three Scottish hosts spend more than £200 on Christmas meals. Only one in five non hosts spend the same.
Despite these challenges, people are not withdrawing from the season. They are adapting instead. One in four are trying options such as Secret Santa, homemade gifts and preloved presents. More than a fifth are cutting back on social events to protect time with the people who matter most. Across Scotland, the message is clear. Presence is valued more than presents.
Financial Stress and Stigma Throughout the Year
The emotional weight of financial worry does not appear only at Christmas. Research from the Money Advice Trust found that 31% of adults feel ashamed or stressed because their financial situation holds them back. This sense of embarrassment can affect confidence, relationships and social participation.
Many people are also uncomfortable talking about money. The research shows that adults across Scotland are often more willing to discuss politics, religion or serious health issues than their personal finances. Only a minority feel fully at ease speaking about money with family or friends. This reluctance can reinforce feelings of isolation. It can also prevent people from seeking support or sharing budgeting ideas that might reduce pressure.
Financial stigma also shapes behaviour. Some individuals avoid social events because of cost worries. Others spend money they cannot comfortably afford so they do not feel left out. These experiences show that financial stress affects emotional wellbeing as much as practical decision-making.
Our own 2024 survey reflects this wider picture of financial strain in Scotland. When we asked people what actions they had taken to cope with the cost of living crisis, thousands told us that everyday sacrifices had become routine. Only 7% said they had not needed to do anything. More than a third had cut back on food, and almost the same proportion had reduced their heating. A significant 66% percent had cut back on socialising or hobbies and almost 50% had reduced other essential living costs.
Many respondents also turned to borrowing. 20% our customers had borrowed from family or friends to combat the cost of living crisis before they approached us for help with their debt, and just over 10% percent took on new debt to pay bills.
Almost 26% worked extra hours or took on a second job. These findings show that financial pressure is affecting almost every aspect of daily life and that many people are having to make difficult decisions simply to stay afloat.
In Scotland, where cost of living pressures continue to impact daily life, recognising these emotional challenges is important. Encouraging open conversations about money can help reduce stigma. It can also increase access to support that may improve financial stability throughout the year.
How Scots Prepare for Christmas
People take varied approaches to planning for December. Around a third save throughout the year. Another 28% begin planning in mid October. Roughly 16% follow a buy now and worry later mindset. For hosts, the financial load is often heavier. Nearly one in five expect to spend more than £500 on gifts. This is almost double the number of non hosts who plan to spend the same. Even so, 58% of hosts say the joy and togetherness of bringing family together make the pressure worthwhile.
Tom Eyre, CEO and Co Founder of Loqbox, explained the shift. He said that “Christmas has always been about being together and that people are reconnecting with this idea. He added that the real magic is not found under the tree. Instead, it is found in time spent with loved ones.”
Looking Ahead: Our Trust Deed Scotland Survey
Now in its 4th year, our annual Trust Deed Scotland and Harper McDermott survey is currently running, with a focus on everyday cost of living pressures. This research looks beyond the Christmas period. It examines how rising prices, household expenses and debt worries affect people in Scotland throughout the entire year.
The survey is open to our Protected Trust Deed and Debt Arrangement Scheme customers throughout December. Findings will be shared in the new year. Our goal is to understand the financial challenges that Scots face in daily life and to use these insights to shape supportive guidance and resources. If you’re a current or former customer of ours and would like to get involved, please contact us today.
If you are feeling the strain of rising costs or struggling with debt, remember that free and confidential advice is available. Taking the first step towards support can make an important difference.