Research from ASIC’s Moneysmart has revealed Aussies will spend on average almost $800 each to fund gifts, holidays and celebrations in 2024.
The research reveals 74% of people set a budget for Christmas but more than four in ten (44%) have regretted their spending in previous years. Just 29% manage to stick to their plan, with savings, credit cards and buy now pay later (BNPL) services used to fund the festive spend.
Around one third of Australians (35%) intend to reduce their spending this year compared to 2023, but more people are planning to spend the same amount (49%) and a sizeable number (16%) are planning to spend even more this Christmas.
On average, adults in Australia estimate they will spend $783 on Christmas this year. Nearly half (46%) plan to spend less than $500, 21% plan to spend between $500 to $999, while 34% of Aussies plan to spend $1,000 or more.
- While 35% of people indicated they plan to spend less this year, 49% said they would spend the same as last year and a sizeable 16% planned to spend more than 2024.
- Of those looking to make savings, the areas people plan to reduce spending are gifts 47%, holidays 39% and decorations 38%.
- Men are more likely than women to plan to spend big with 39% indicating they would spend $1,000 or more compared to 29% of women.
- Millennials will outspend Baby Boomers this year, with their estimated spend $937 compared to $679.
Most likely people to have Christmas budgets
When it comes to budgeting for Christmas, 74% of Aussies claim to budget their Christmas spending, although only 29% tend to budget every last cent and stick to it.
Millennials are more like than Baby Boomers to budget their Christmas spending – 78% compared to 71%.
And in a competition of the younger generations, Millennials are more likely than Gen Z to budget every last cent and stick to it – 32% compared to 20%.
It follows research by non-bank lender MONEYME, which found Aussies anticipate spending, on average, $1136 more this festive season compared to last year.
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%)
Learn more about the MONEYME results here.