Yahoo Finance Cost of Christmas cheer: Unboxing Australia's festive spending habits
Putting a cap on how much we spend on Christmas presents is an easy way to rein in the festive budget.
You can buy a lot with $1,500. It’s enough for a deposit on a second-hand car, major dental surgery like wisdom teeth removal, a return flight for a tropical beach holiday or it could even pay off a fair whack of credit card debt.
But, for many Australians, it’s the amount of money we’re planning to spend this Christmas.
A Finder survey of 1,061 respondents found the average Aussie expected to spend around $1,480 each this Christmas – a massive 9 per cent increase on the average spend of $1,361 in 2022. In case you’re wondering, this works out to be a collective $30 billion on holiday cheer.
We’re in the middle of a cost-of-living crisis and mortgages and rents are costing us hundreds – perhaps even thousands – more per month than they were this time last year. But there seems to be an appetite to make sure it’s “business as usual” for Christmas, even if it means stretching the budget to breaking point.
So, where are we planning to spend the most this Christmas?
Average spend | % of survey respondents spending on this | National spend (total) | |
Presents and gifts | $373 | 78% | $7.6 billion |
Flights and travel | $533 | 30% | $10.8 billion |
Catering, holiday meals and entertaining | $249 | 80% | $5.1 billion |
Alcohol | $192 | 64% | $3.9 billion |
Eating or drinking out to celebrate | $133 | 57% | $2.7 billion |
TOTAL | $1,480 | $30.1 billion |
Source: Finder
The festive season is typically an expensive time of year, so these spending estimates are perhaps not so surprising. But we also did some digging into how many people were planning to change their spending habits this silly season, and that unearthed some interesting insights.
For instance, Finder stats reveal 18 per cent of Aussies are implementing a gift-giving limit with loved ones. I am a huge fan of this idea and I hope it’s a trend that catches on for many years to come.
How many of us have opened up a gift on Christmas morning and instantly known the shirt just isn’t your style or it doesn’t fit? Or it’s a fragrance you wouldn’t normally wear? A type of wine you don’t drink, a vase you don’t need or another beach towel to pop into your cupboard that is already overflowing with a dozen beach towels?
Putting a cap on how much we waste, ahem - I mean spend - on Christmas presents is an easy way to rein in the festive budget.
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Paying for peak-season travel
A further 13 per cent said they were skipping trips away and staying at home to curb costs. This can be a little tricky to come to terms with: we generally want to spend the season with the people we love, which can involve some travel. And if you want to spend December 25 with your loved ones, you’re going to have to pay premium prices.
For the one in eight of us forgoing travel this year, it might feel strange to spend Christmas Day doing something different to what we’re used to. The great thing about technology is we can FaceTime or Zoom and still celebrate together in some form, and we can keep family traditions going even if we’re far apart.
And it doesn’t have to mean you skip out on seeing the family altogether. It’s much more cost-effective to nix the pricey peak travel in favour of staying at home on Christmas Day and visiting the family during the low season - from late January through to March - instead.
Overall, Christmas and all the associated costs can be a huge financial stress and, for many, it can lead to an even more stressful January – when the credit card statements and buy now, pay later bills start rolling in.
The last thing you want is a new year debt hangover, so be super mindful about your spending this silly season. And if you have charged a little more than you were planning to on your credit card, January might be the ideal time to apply for a 0 per cent interest balance-transfer credit card.
What better way to start the new year than with a fresh budget and a plan to pay off your debt – and perhaps a savings habit of $20 a week stashed away, so next Christmas is a financial breeze.
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