The holiday season is upon us once again, and Australians are gearing up for another busy Christmas shopping period. Despite economic challenges like rising inflation and mortgage stress, festive spending is still expected to rise by 2.7% compared to last year, reaching a whopping $69.7 billion. But celebrating Christmas doesn’t have to mean financial stress – with some smart strategies and creative thinking, you can keep your costs under control while still enjoying all the season has to offer.
Budget Before You Buy
The key to avoiding overspending is setting clear spending limits for each person on your gift list. Decide on a budget – whether it’s $10, $25, $50 or $100 per person – and stick to it. Make a list of what you plan to buy for each recipient to keep yourself on track.
Downloading a budgeting app can also help you monitor your spending in real-time. Most banking apps now include budgeting tools, but there are also plenty of standalone apps dedicated to helping you find deals and meet your financial goals. According to research, using a budgeting app can reduce spending by up to 15%.
Take Advantage of Sales & Discounts
Nearly two-thirds of Australian shoppers begin their holiday shopping in November to capitalize on major sale events like Black Friday and Cyber Monday. Online retailers like Amazon, eBay and The Iconic now attract more Christmas shoppers (69%) than traditional department stores (59%).
To score the best deals, do your research ahead of time. Compare prices online, set alerts for products you want, and always search for discount codes before checking out. Don’t forget to leverage loyalty programs and free shipping offers to maximize your savings. Booking a trip? Check out the best airfare deals here.
“I always start my Christmas shopping early and spread it out over a few weeks. That way I can take my time to find the best prices without getting overwhelmed. I also love using cash-back apps to earn a little money on the side while I spend!”
– Sarah, savvy Christmas shopper
Pay With Cash to Curb Spending
Swiping a card makes it easy to overspend without realizing it. Paying with physical cash forces you to be more mindful and stick to your budget since you can literally see the money leaving your hands. The government’s recent move requiring businesses to accept cash is good news for budget-conscious shoppers.
Using the envelope budgeting method is another way to keep your spending in check. Label an envelope for each person or expense category, put the budgeted cash amount inside, and seal it. Once the envelope is empty, you’re done spending in that category.
Get Creative With DIY Gifts
While Australians will spend an average of $660 per person on gifts this year, not everything under the tree needs to be store-bought. Handmade gifts and decorations add a unique, personal touch that’s often more meaningful than anything you can buy.
- Create a photo album or scrapbook of special memories
- Bake festive treats like cookies, fudge or gingerbread
- Sew fabric garlands or ornaments for the tree
- Make scented bath salts or sugar scrubs in decorated jars
- Craft pine cone ornaments or wreaths with natural materials
Organizing a Secret Santa gift exchange is another affordable gifting idea that takes the pressure off buying for multiple people. Use an online tool to randomly assign each person a recipient, set a reasonable price limit, and swap wrapped gifts anonymously.
Trim the Fat on Festive Feasts
Food is another major holiday expense, with Australians projected to spend $28 billion on festive spreads, up 4.2% from last year. To cut costs without cutting down on the celebrations:
- Ask guests to bring a dish to share in a Christmas potluck
- Opt for a casual picnic or barbecue to feed a crowd on a budget
- Get creative with leftovers to stretch your food dollars further
- Stock up on discounted non-perishables for next year’s feast
With some smart spending strategies and a dose of DIY spirit, you can celebrate Christmas in style without starting the New Year under a mountain of debt. Focus on experiences and heartfelt gifts over flashy, expensive presents – after all, the real magic of the season lies in the precious memories made with loved ones, not the price tags.
