Australians are set to spend $23.9 billion this festive season on presents, food, alcohol, and travel, according to Finder’s recent spending statistics. Crazy, right? What if we told you this flabbergasting amount is a 38% increase compared to last year’s estimated $17.3 billion spend?
The average Australian is expected to spend $1,232 this Christmas, with Victorians taking the lead on who will be spending the most ($1,373), followed by New South Wales residents ($1,361).
Don’t get us wrong, we love the festive season – with the exception of some Grinches – but we all know Christmas can be a well-known budget-buster.
According to Finder, 23% of Aussies will have to go into debt to cover their Christmas costs. Out of those, 14% will be relying on their credit card, 7% will use buy now pay later services and 1% plan to takeout personal loans.
How to save money this Christmas
You don’t have to be an economist to figure out that going into debt to cover Christmas costs is not good. Therefore, we have selected some of the best tips we could find to help you cut down on spending this year:
Set a spending limit for all your gifts.
Don’t go shopping without this list, or you may end up spending $100 on a secret Santa gift because you thought it was lovely. Be specific and set a limit for everyone you’re buying for based on your budget. Some experts recommend spending about $100 on partner’s gifts, $75 on presents for parents, and $50 on a brother or sister’s gift. When it comes to friends, $15–$25. Needless to say, you should adapt it according to your own budget.
Christmas potlucks are cool again.
If you’re hosting, ask people to bring something. It all adds up, and this can save you not only money but also effort and time.
Many retailers offer around 10 to 20% discounts for first-time customers. Do your research before buying anything.
Reuse and recycle.
Look around the house and see what can be recycled. You don’t need a new tree, new decorations, and a new wreath. Be strong.
Make homemade gifts.
Rachel and Monica from Friends have done it. So can you. From tasty homemade food gifts to snazzy bubble bath gift boxes, homemade gifts have that special personal touch. Taste has selected some incredible recipes that are sure to rival what’s under the tree.
Open a Christmas savings account.
This is a tip for the new year. A lot of banks these days allow you to open multiple savings accounts. ING, for example, gives you the option to open up to 9 separate accounts for each of your savings goals. So if you add $50 to it every month for the next 11 months, you’ll have $550 by the time Christmas arrives again next year.
Do you have any other tips for saving money at Christmas? Email us with your best suggestions.
At UFinancial, we’re passionate about financial wellbeing. So whether you need help managing your money, consolidating or developing a financial plan to meet your life goals, we’re here for you.
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