Bah humbug! Aussies set to spend $17 billion this Christmas

Even though the Covid crisis has put the breaks on spending in certain areas this year, it’s showing no signs of dampening Christmas, with the average Australian set to spend nearly $900 on the festive season alone.

The new figures come from comparison site Finder, which surveyed more than 1,000 Aussies on their spending habits over the holidays. It revealed that, overall, shoppers are set to fork out $17.3 billion on Christmas this year, which averages out to $893 per person.

Aussies are expected to spend the most on gifts, with each person set to pay $391 on average. And with most domestic borders opening in time for Christmas, travel expenses will make a welcome return to bank accounts, with an expected average of $352 per person spent on heading away from home.

Meanwhile, other expenses won’t have as much festive funding allocated, with charity donations getting just $58, decorations $57, and hampers $35 of the total budget.

When broken down state-by-state, residents of New South Wales are expected to shell out the most this year, with each person looking to spend an average of $1,010. On the other side of the country, Western Australians will be paying the least, with a budget of just $705 over the holidays.

With only one month until the big day swings around, Kate Browne, personal finance expert at Finder, said that the buying season has well and truly begun. Browne added that in light of the turbulent year that’s just passed, it’s best Aussies keep an eye out for the deals that are currently on offer in the market to reduce the “buyer’s stress” that inevitably happens around this period.

“The holiday season is expensive, and the cost of presents, food and decorations can leave a serious dent in the household budget,” she said. “The Black Friday and Cyber Monday sales are almost here, providing a great opportunity to purchase Christmas presents and supplies at a discount. Aussies can expect to find huge savings across fashion, tech, homewares, appliances and more.”

But if your budget isn’t bracing itself for a $900 Christmas, Finder has also provided some foolproof ways to reduce costs and avoid breaking the bank this year. Firstly, it’s important to remember that you don’t have to say yes to everything. If the budget is looking dry after all the important expenses, it’s perfectly acceptable to cherrypick social events and leave the less important invitations by the wayside.

Meanwhile, it’s also a great time of year to use up any leftover store credits or gift vouchers you have lying around to avoid paying out-of-pocket for things such as gifts or decorations. And as many have gone through a similar rocky period with finances this year, it might be time to suggest a gift limit with family and friends, so you don’t have to pay through the nose for every individual present.