Instead of saying “Christmas. Bah Humbug” like Scrooge in a Christmas Carol, it seems Australian are saying “Bah Humbug” to inflation as we approach the festive season.
According to a new survey from online finance brokers Savvy we are set to drop an incredible $14.9 billion on Christmas this year, spanning gifts, food, drinks and travel.
This means that the average Australian will spend $767 on Christmas.
Based on the survey of 1000 people, it seems women are more generous than men, or perhaps it’s because they are buying presents for more people. They survey shows women will spend $848, with men spending an average of $705.
The data shows that 50% of Australians plan to spend between $100 and $600 this Christmas, while 19% are intending to spend over $1000. Only 8% of shoppers will put $100 or less towards their Christmas spending this year.
Those in the 35 to 54-year age bracket are set to be the biggest spenders, with 27% of 35 to 44-year-olds and 25% of 45 to 54-year-olds planning to spend more than $1000. In comparison, only 16% of 25 to 34-year-olds and 11% of 18 to 24-year-olds are looking to splash that amount.
Maybe that is because the 35 to 54 year olds are parents, with kids to buy for!
So, how will this be funded?
The majority of will be primarily funding their Christmas spending with their savings, with 76% stating they would mainly be utilising their own money to do so.
However, the number of Australians who plan to use either a credit card or buy now, pay later service as a main source of funding for their Christmas shopping has increased, with credit cards rising from 16% to 28% and BNPL from 6% to 17%.
Apparently the survey shows that the Christmas spending will be down slightly on last year, so inflation must be having something of an impact.
If you are feeling the pinch and still want to be generous this year, there are a few tips to help you get more bang for your Christmas buck.
Firstly, if you can help it, use your savings and not the credit card. Who wants credit card bill shock in January, just as you are about to go back to work?
Setting a budget is a good idea, and how about buying for less people? My mother used to buy surplus presents and had them on hand in case there were any unexpected guests drop in, and probably spent around $100 a year on this in today’s equivalent each year. It was a waste!
Have a think about who you really want to buy for, and even have a chat with other families and strike an agreement that you won’t buy for each other. Surely they will understand?
Other tips are to buy online, shop the sales, and even buy the smaller gifts at the two dollar shops or at op-shops. In this era of sustainability, re-gifting is cool!
Lastly, check those reward points that have been building up the whole year. A lot of us aren’t going away overseas or interstate this year because of the high airfares, so why not cash some of those rewards in on presents?
Everyone will love you, and it won’t bust the bank.