This festive season, Australians are significantly reducing their spending, with a projected decrease of $1.6 billion compared to last year due to the ongoing cost of living crisis. Recent research by Finder indicates that the average Australian plans to spend around $1,357 this Christmas, amounting to a national total of approximately $28.4 billion—an eight per cent drop from 2023’s $1,479.
Personal finance expert Sarah Megginson notes that households are trimming their Christmas budgets by an average of $122 due to financial anxieties. While spending on gifts is expected to reach $7.5 billion, the average expenditure per person will fall to $359, down from $373. Interestingly, spending on dining out appears to buck the trend, with Australians planning to spend 30 per cent more than last year.
Megginson advises planning ahead and setting realistic budgets to manage festive expenses better. She suggests alternative gifting methods, such as Secret Santa, potluck dinners, or offering personal services to loved ones. Finder also recommends offsetting higher expenses by seeking better deals on insurance or refinancing loans, and encourages families to agree on spending limits for gifts or consider homemade presents to enhance savings this Christmas.