Australians set to spend $1,000 each on Christmas

It’s that time of year when stores compete for shoppers’ wallets, and for consumers that can make the holiday season a real budget buster. Research by Deloitte shows consumers are planning to spend an average of around $1,000 each on Christmas this year ¹ .

But faced with tight budgets, we’re searching harder than ever for bargains and discounts.

The Deloitte report found 95% of shoppers say scoring a bargain is the main game this holiday season, and nearly one in three will walk away from a purchase if there’s no discount involved.

So, how can you maximise the bargains?

Easy – and it doesn’t involve being a Grinch. Just try these four ideas to keep a lid on spending while enjoying all the fun of the festive season.

1. Don’t feel obliged to buy everyone a gift

The kid’s teachers, great aunty Ethel, second cousin Simon who you only see once a year…we can feel pressured into giving everyone we know a gift at Christmas.

Here’s the thing.

Not everybody wants to receive a present.

A survey by the Australia Institute found nearly half (48%) of us would rather people didn’t buy them gifts at Christmas ²   . So, if someone tells you not to bother buying them a gift, chances are they mean it. So, why not take the hint and save the cash?

2. Tech the halls to snag the festive deals

With Christmas fast approaching, online shoppers can make the most of comparison tools to find the best deals for the festive season. If you’re a regular Amazon shopper, for instance, check out CamelCamelCamel, an Amazon price tracker that offers price drop alerts and detailed price history charts for Amazon products.

Each product page features graphs displaying price fluctuations over time, including high, low, and average prices.

There are also a variety of apps such as ShopSavvy and Price.com that allow you to compare prices across major retailers by simply scanning a barcode or snapping a photo of an item.

3. Unwrap the smarter choices for Christmas gifting

A survey from Shop reveals that nearly half (47%) of Australians plan to buy clothing and shoes as gifts this Christmas, with books (46%) and gift cards (45%) also high on the list of popular choices for 2024 ³

However, Monash University research shows these gifts may not always hit the mark. Last holiday season, clothing, footwear, and accessories topped the list of most returned items (55%), followed by books and stationery (35%) and consumer electronics (20%) ⁴ .

Gift cards remain a popular choice, offering a simple solution when you’re re unsure of what someone truly wants or needs. Yet even this gifting strategy doesn’t always hit the mark with one industry survey revealing Australians have a whopping $1.4 billion worth of unused gift cards ⁵ and that 35% of us have at least one gift card sitting unused in our homes and wallets. 

4. Keep the festive cheer debt free

Between buying gifts for friends and family and juggling festive season catchups, it’s easy to lose track of your budget and overspend. This can quickly lead to reaching for a credit card or using buy now pay later (BNPL) to cover holiday season expenses.

A YouGov survey revealed that last Christmas, one in four Aussies relied on their credit card, while 16% turned to BNPL options ⁶  . At the same time, over half (52%) of Australians reported dipping into their savings to cover the costs of Christmas.

As you plan your Yuletide celebrations, consider leaving the credit card at home and using a debit card. After all, nothing dulls the holiday cheer faster than waking up on January 1 with a sizeable Christmas debt hangover to manage ⁷  . So, aim to keep the season joyful by spending within your means. 

1 https://www.deloitte.com/au/en/about/press-room/holiday-shoppers-tighten-purse-strings-cost-of-living-challenges-bite-170924.html

2 https://australiainstitute.org.au/post/oh-you-shouldnt-have-christmas-gift-waste-expected-to-top-900-million/

3 https://www.shopassociation.org.au/sites/default/files/uploaded-content/field_f_content_file/2024-australian-christmas-shopping-intentions-research-report-cpmaustralia-retailsafari-1.pdf

4 https://lens.monash.edu/@business-economy/2024/02/05/1386435/the-cost-of-christmas-cheer-christmas-gift-returns

5 https://www.skynews.com.au/australia-news/new-finder-survey-reveals-australians-have-14-billion-worth-of-unredeemed-gift-cards-with-average-of-198-per-person/news-story/47bac34f12d5e143e54d24b67112e135

6 https://au.yougov.com/consumer/articles/48217-baby-boomers-and-gen-z-to-cut-back-on-christmas

7 https://www.finder.com.au/news/aussies-in-christmas-debt-2024?timestamp=1731900036747