'Our finances are tight this year': The tough truth behind Australia’s festive spending
- Replies 46
The festive season is a time of joy and celebration, but it can also bring unexpected pressures and challenges.
As Aussies gear up for the holidays, a growing concern is casting a shadow over the usual cheer.
What’s emerging is a cautionary tale that has left millions rethinking their holiday traditions and spending habits.
A recent Finder study revealed that 30 per cent of Australians—around 6.3 million people—have felt compelled to make purchases to keep up with the lifestyle of friends or family.
On average, Australians have spent $1,309 beyond their means in the past year trying to match others' spending habits.
This trend is likely to worsen during the festive season, as the cost-of-living crisis continues to bite.
A survey from charity Good360 Australia found that nearly half of Aussies (49 per cent) are concerned about affording gifts for their loved ones this Christmas.
Over a quarter fear this will be their family’s hardest Christmas in years.
Adding to the strain, a study from ShipStation discovered that two in five Australians have slashed their 2024 holiday budgets due to inflation and high interest rates.
Last year, Aussies typically spent $1,000 to $2,000 on non-essential holiday shopping; this year, most plan to keep it between $200 and $500—a 75 per cent drop.
Personal finance expert Sally Megginson recommends focusing on practical gifts for kids to manage costs. ‘Think about what they'll need for school next year—shoes, drink bottles, lunch boxes, or school bags,’ she advised.
‘Christmas can be a great time to start back-to-school shopping. It’s also helpful if family members ask what to gift your kids.’
Megginson shared that this approach can prevent waste and ease financial pressure in the new year.
To manage holiday stress, Megginson suggests having open conversations with family, especially kids, about financial limitations.
‘The cost-of-living crisis has made these discussions more common, but they’re important,’ she explained.
'Talk to your kids about how Christmas might look different this year or set expectations with extended family about gift-giving.'
She emphasised the value of honesty: ‘Saying, “Our finances are tight this year,” helps everyone get on the same page. It’s better to communicate early than to face disappointment later.'
In a similar story, we shared how Aussies are embracing creative ways to celebrate Christmas amidst cost-of-living pressures, from prioritising practical gifts to managing spending expectations.
Find out how to host the ultimate Christmas party for 8-10 guests on a tiny budget. Read the full story here.
What are your favourite tips for stretching your holiday dollar while keeping the cheer alive? Share your thoughts in the comments below!
As Aussies gear up for the holidays, a growing concern is casting a shadow over the usual cheer.
What’s emerging is a cautionary tale that has left millions rethinking their holiday traditions and spending habits.
A recent Finder study revealed that 30 per cent of Australians—around 6.3 million people—have felt compelled to make purchases to keep up with the lifestyle of friends or family.
On average, Australians have spent $1,309 beyond their means in the past year trying to match others' spending habits.
Millions feel pressured to keep up financially this Christmas season. Image source: Pexel/Gustavo Fring
This trend is likely to worsen during the festive season, as the cost-of-living crisis continues to bite.
A survey from charity Good360 Australia found that nearly half of Aussies (49 per cent) are concerned about affording gifts for their loved ones this Christmas.
Over a quarter fear this will be their family’s hardest Christmas in years.
Adding to the strain, a study from ShipStation discovered that two in five Australians have slashed their 2024 holiday budgets due to inflation and high interest rates.
Last year, Aussies typically spent $1,000 to $2,000 on non-essential holiday shopping; this year, most plan to keep it between $200 and $500—a 75 per cent drop.
Personal finance expert Sally Megginson recommends focusing on practical gifts for kids to manage costs. ‘Think about what they'll need for school next year—shoes, drink bottles, lunch boxes, or school bags,’ she advised.
‘Christmas can be a great time to start back-to-school shopping. It’s also helpful if family members ask what to gift your kids.’
Megginson shared that this approach can prevent waste and ease financial pressure in the new year.
To manage holiday stress, Megginson suggests having open conversations with family, especially kids, about financial limitations.
‘The cost-of-living crisis has made these discussions more common, but they’re important,’ she explained.
'Talk to your kids about how Christmas might look different this year or set expectations with extended family about gift-giving.'
She emphasised the value of honesty: ‘Saying, “Our finances are tight this year,” helps everyone get on the same page. It’s better to communicate early than to face disappointment later.'
In a similar story, we shared how Aussies are embracing creative ways to celebrate Christmas amidst cost-of-living pressures, from prioritising practical gifts to managing spending expectations.
Find out how to host the ultimate Christmas party for 8-10 guests on a tiny budget. Read the full story here.
What are your favourite tips for stretching your holiday dollar while keeping the cheer alive? Share your thoughts in the comments below!
.png){kind=icon}
