A new survey has found that, despite cost-of-living pressures, more than a third (35%) of Australians will be spending more over Christmas on alcohol, food and gifts than last year, with Millennials and Gen Z leading the charge.
Non-bank lender MONEYME commissioned the survey, which found Aussies anticipate spending, on average, $1136 more this festive season compared to last year.
Nearly half (49%) of Millennials are expecting to spend an average of $1531 more during festivities – compared to just 28% of Baby Boomers at $420. Gen Z isn’t far behind, with 38% expecting higher spending – an average of $1294 – compared to last year.
The Christmas spending casualties
However, higher inflation is forcing many Aussies to rethink their Christmas plans. Nearly two-thirds (64%) are cutting back, with dining out (33%) and certain grocery foods (37%) topping the list of sacrifices. Also on the chopping block are travel (25%), alcohol (24%) and even gifts (24%).
The alcohol spending results show:
- 24% of Aussies say they will forgo or cut back on alcohol this Christmas to save money
- Baby Boomers are the least likely to forgo alcohol (18%), compared to Gen X (28%), Millennials (27%) and Gen Z (25%)
- Interestingly, unmarried Aussies are more likely to cut back on alcohol than their married counterparts (27% vs 23%)
- While those with children are more likely to cut back or forgo drinking, compared to those with children under 18 (28% vs 23%)
- Western Australian residents are the most likely to forgo or cut back on alcohol this Christmas due to cost of living pressures (31%)
- Residents in Victoria and Queensland are the least likely (22%)
- Households with an income between $50,000 to $99,000 are most likely to cut back or forgo alcohol (28%) vs households earning $100,000 to $149,000 (19%)
Dining out is another casualties of rising costs, with Millennials, Gen X, and Baby Boomers all significantly more likely to cook at home compared to Gen Z (34% vs 24%).
Cost-of-living squeezes traditional Christmas foods
The financial pinch is reshaping Christmas menus across the country. According to the survey, these festive foods are most likely to be cut in 2024:
- Oysters (16%)
- Prawns (14%)
- Turkey (13%)
- Red meat (11%)
- Ham (10%)
- Desserts (10%)
- Pork (excluding ham) (8%)
- Fresh fruit (9%)
- Chicken (8%)
- Vegetables (6%)
Generational differences also emerge. Baby Boomers are the most likely to cut oysters (21%), while Millennials (15%) lead in trimming turkey. Gen Z is the group most likely to reduce spending on vegetables (11%). The younger generations are also more likely to cut back on their groceries (Gen Z: 43% and Millennials: 41%) compared to older generations (Gen X: 32% and Baby Boomers: 35%).