Surviving the 2024 Chritsmas Season Without Breaking the Bank
Dec 20, 2024
By Molly Benjamin, founder of Ladies Finance Club
Christmas is a time for joy and celebration—but let’s be real, it often brings a whole lot of financial stress. Between gifts, parties, and all the festive extras, the holidays can leave our wallets feeling the pinch. New research by the St Vincent de Paul Society NSW reveals that more than two-thirds of Australians are worried about the financial strain of the festive season. Nearly three in five are concerned about affording basic essentials, including food.
Adding to the pressure, Australians are expected to spend an average of $800 on gifts, holidays, and celebrations this year. Yet, with the rising cost of living, many households are feeling the squeeze: the Real Struggle Report 2024 shows that 69% of Aussie households are experiencing financial stress. To combat these pressures, 87% of Australians are actively cutting back on spending.
The Financial Impact of the Holiday Season 🎄💸
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Unwanted Gifts: Research estimates that $1 billion worth of unwanted Christmas gifts will end up in landfill this year, contributing to waste and greenhouse gas emissions. A staggering 48% of Australians would prefer not to receive gifts at all, highlighting the disconnect between the tradition of gift-giving and actual desires.
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Funding Festive Spending: 75% of Australians plan to fund Christmas expenses using their savings. However, 31% will rely on credit cards, and 16% will use buy now, pay later services. These methods can lead to long-term financial strain if not managed carefully.
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Generational Spending Differences: Millennials are projected to outspend Baby Boomers this Christmas, with an average spend of $937 compared to $679.
Tips to Reduce Financial Stress This Christmas 🎅💡
The festive season doesn’t have to break the bank. Here are some practical strategies to stay on top of your finances:
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Organize a Secret Santa: In family or friend groups, suggest drawing names so everyone buys one gift instead of many. Set a spending cap to ensure fairness and affordability.
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Create a Christmas Savings Account: Start setting aside money throughout the year. Even small, regular contributions can ease the financial burden when the holidays arrive.
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Give the Gift of Shares: Consider gifting shares or ETFs for a long-term financial benefit. It’s a unique, meaningful alternative to traditional presents.
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Ask What People Actually Want: Skip the guessing game and directly ask loved ones what they’d like. This reduces the likelihood of unwanted gifts.
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Create a Budget: Outline all holiday expenses, set specific spending limits, and stick to them.
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Use Cashback Sites: Save money by taking advantage of cashback offers on purchases.
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Shop Sale Days: Take advantage of major sales like Black Friday and Boxing Day to snag deals.
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Shop Around: Compare prices before buying to ensure you’re getting the best deal.
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Suggest Skipping Gifts: Be honest with family and friends about the stress of gift-giving and suggest skipping presents altogether.
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Try an Op-Shop Challenge: Thrift stores are treasure troves for unique, budget-friendly gift ideas.
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Avoid Credit Cards: Stick to cash or debit cards to avoid accumulating debt.
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Start Shopping Early: Avoid last-minute shopping, which often leads to overspending.
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Limit Self-Gifting: Focus on your gift list and resist the urge to buy unnecessary items for yourself.
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Be Cautious with ‘Buy Now, Pay Later’: Use this option sparingly to avoid future financial strain.
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Avoid Impulse Purchases: Stick to your shopping list and avoid temptation.
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Opt for Alternative Gifts: Handmade items, experiences, or offering your time can be more meaningful than material gifts.
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Set Clear Expectations: Discuss budgets with loved ones to set spending limits or organize gift exchanges.
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Monitor Spending: Regularly track expenses to ensure they align with your budget.
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Reflect on Habits: Evaluate your spending and adjust your approach to avoid unnecessary costs.
Plan Ahead for a Stress-Free Holiday 🗓️🎁
By implementing these tips, you can keep holiday stress at bay and focus on what truly matters—spending time with loved ones. A little planning and creativity can make this Christmas both joyful and financially sustainable.
