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Australian consumers are set to spend an average of $800 each to fund Christmas gifts, holidays and celebrations, according to recent research from ASIC’s Moneysmart.
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Consumers warned to avoid post-Christmas ‘spending hangover’
13 December 2024
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Moneysmart has cautioned consumers to watch their spending over the Christmas period to avoid a post-Christmas spending hangover.
ASIC’s Moneysmart revealed only 29 per cent of those who set themselves a budget managed to stick to it by utilising savings, credit cards and Afterpay options to fund the festive season expenses.
ASIC commissioner Alan Kirkland said although many consumers planned to be careful with their spending, research showed many were also willing to blow their budget during the holiday period.
“When it comes to buying gifts, it really is the thought that counts – plan your spending, stick to your budget and avoid entering into high interest debt,” he said.
“Even with the best intentions, sticking to a budget can be especially challenging during the festive season, leaving many at risk of falling into costly debt traps.”
In comparison to 2023, one-third of Australians said they intended to reduce their spending this year, while 49 per cent were planning to spend the same amount and 16 per cent planned to spend more.
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According to Moneysmart data, adults in Australia spend an average of $783 on Christmas each year, with men spending more each year than women.
It was also found that Millennials were more likely than Baby Boomers to budget their Christmas spending, with 78 per cent compared to 71 per cent.
Kirkland said those who had planned to increase their spending could lead to costly decisions such as putting too much on credit or entering unnecessary debt.
“If you do find yourself with too much debt there are steps you can take to get back in control,” he said.
“This includes setting up a repayment plan, credit card balance transfers or, if you are unable to make repayments, applying for financial hardship assistance through your bank or credit provider.”
ASIC provided a checklist for consumers to ensure spending didn’t get out of control, especially in the current tough economic climate.
ASIC’s Moneysmart tips for Christmas included setting a realistic budget, being aware of credit use, regularly monitoring accounts, being mindful of bad deals or scams and seeking help if needed.
Kirkland said that based on past years, a notable amount of people have often experienced regret towards their Christmas spending and had struggled to make the money back.
“ASIC’s Moneysmart website has information and support for Australians to help avoid a post-Christmas spending hangover and to help get debt under control.”
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