Australians are pulling back on spending this festive season as the cost of living continues to rise, with shoppers expected to spend $1.6 billion less than last year, new data shows. New research from Finder found the average Australian plans to spend $1,357 over Christmas, equivalent to $28.4 billion nationally. That’s down 8% from $1,479 in 2023 ($30 billion nationally), the data shows).
Australians are cutting back on spending over the festive period this year. (Edwina Pickles) Finder personal finance expert Sarah Megginson said households cut $122 from their Christmas budgets due to money worries. “The festive period can be financially stressful, especially after a tough few years with inflation and high interest rates,” Megginson said. Australians are expected to spend $359 per person on gifts alone this year, but that’s down 4 per cent from $373 last year. In total, $7.5 billion will be spent on gifts, with 72 per cent of respondents planning to buy presents.
New research from Finder has found the average Australian plans to spend $1357 on Christmas. (AAP) Food and dining are also top of the list for Australians over the festive period this year. Finder found Australians plan to spend $244 on food, $173 on dining out and $145 on alcohol. Surprisingly, Australians are expected to spend 30 per cent more on dining out than they will in 2023. Ms Makinson said it was important to plan ahead and create a realistic budget to meet expectations this Christmas. “Rather than buying gifts for everyone in your life, consider tweaking traditions like attending a Secret Santa or contributing to a potluck, or giving gifts in the form of ‘services’ – cooking a special meal, babysitting the kids for the evening or helping out with the garden,” she said. “While Christmas may look a little different for many people this year, you can still celebrate without going into debt or financial stress.” To save money this Christmas, Finder recommends offsetting higher spending by finding a better deal on car insurance or refinancing to a cheaper home loan. Agreeing on gift spending limits with friends and family or opting for DIY homemade gifts can also boost savings.