Australians are due to splurge $9.77 billion on Christmas presents this year, which is up 28%, or $119 per adult, on last year’s expenditure, according to finder.com.au.
The splurging has already begun, with more than five million Australians admitting they’ve started Christmas shopping as of October 2016 or earlier.
The finder.com.au survey asked 2,005 Australians how much they are planning to spend on Christmas gifts this year.
On average, Australians are planning on spending $539, which has lifted from $419 in 2015.
Women are more generous when it comes to forking out on Christmas gifts, spending on average $31 more than men.
Almost one in three (27.6%) have already started their Christmas shopping, with the shopping frenzy expected to peak again in the first week of December with one in five (20.7%) heading to the shops four weeks out.
Interestingly, the survey found males from Western Australia aged 35 – 54 (Generation X) will spend the most out of all demographics this Christmas at $936, which is over 42% the national average.
In contrast, males from Queensland aged 55+ (Baby Boomers) will spend the least of all generations of only $278 per adult on Christmas spending.
Bessie Hassan, Money Expert at finder.com.au, says Australians will spend an extra $2.2 billion dollars on gifts this year.
“With unemployment at the lowest level in three years and interest rates at an all-time low, Australian shoppers are feeling confident and generous, ” she says.
Ms Hassan warns consumers that the festive season is an expensive time of year and many Aussies may end up paying off debt well into the New Year.
“Don’t get bamboozled by all the pre-Christmas sales and hype – make a list and stick to it in order to avoid racking up debt that you can’t comfortably repay,” she says.
State by state:
- New South Wales shoppers are expected to spend the most on Christmas presents – a whopping $607 per adult, followed by West Australians spending on average $575.
- West Australians have also seen a 65% jump in Christmas spending this year – an additional $226 per adult.
- Christmas comes earliest for Queenslanders, with the figures showing 32.84% have already begun Christmas shopping, followed again by West Australians at 30.20%
- Tasmanians will spend the least on Christmas presents ($450), followed closely by South Australians ($473).
- Victorians aren’t afraid to leave their shopping to the last minute with 5% of shoppers waiting until Christmas Eve for a last minute gift grab.
|State||2015 Christmas Spend||2016 Christmas Spend||Difference|
|Source: finder.com.au survey of 2,005 adults|
How to manage your Christmas spending:
- Set yourself a budget. Identify the recipients of your Christmas gifts and allocate a set amount for each person. Having a budget in mind will ensure you don’t get swayed by Christmas promotions. You’ll also be less likely to make last-minute or impulse purchases.
- Get in early (and price check online). Don’t leave your Christmas shopping until the eleventh hour but instead plan ahead and start your shopping early so you can make the most of early Christmas sales. Consider jumping online to see what’s on offer and so you can compare these costs with in-store prices. Buying in bulk is another good way to cut costs.
Be conscious of your plastic spending.
While you may be tempted to increase your credit card limit or to put all of your purchases on your credit card, keep tabs on how much you’re spending and consider doing a balance transfer to pay no interest for a specified period.