Christmas is a wonderful time to be enjoyed with family and close friends. It is also a time when we tend to spend a lot of money, and more often than not, stretch our budgets. So many friends… so many relatives… so many gifting events… Spending can easily get out of control.
As a nation, we spend big at Xmas. Last year, Australians spent on average $955 over the holiday season including presents, food & drink and home entertainment, according to a CBA survey. That implies pre-Christmas spending of over $13billion on gifts and entertainment in one single year!
On gifts alone, Australians spend $599 on average during Xmas. While the economy and retailers are thankful for our Christmas spirit, our pocket swon’t. To make sure we do not blow our budgets and face a Xmas debt hangover, here are 7 tips to keep your spending under control:
#1: Make a list of people you’d like to buy a gift for
That should be the first item on anyone’s Xmas checklist – if you don’t’ have one, here is ours. Once you have named all your gift receivers, create short lists of gift ideas for each person and make sure each idea falls within what you want to spend. Do some fishing around to see if any of your ideas is something that may be needed and wanted.
#2: Set a budget and stick to it
You may be surprised to know that 60% of Aussies simply do not set a budget for their Xmas spending. Going with the flow is not a good idea as Christmas advertising, media and shopping is designed to make you spend more than you want. Have a budget for each gift or receiver and also set how much you want to spend on food/drinks and other Xmas supplies.
#3: Shop online whenever possible
Online shopping is often cheaper. It also helps you avoid some of the temptations and traps from shopping malls and department stores.
#4: Avoid last minute shopping
Ideally you want all your shopping done by the end of November. What? That’s right, especially for gifts. Last minute shopping means no discounts available, inflated prices and can also force you to buy something more expensive than you had in mind originally – why? because you are running out of time. That will not only save you money but also stress.
#5: Keep track of what you are spending
As the festive season approaches, make sure you regularly update your Xmas spread sheet and check your bank account every second day. It all adds up as my sister likes to say and it’s amazing how quickly spending may get out of hand.
#6: Encourage group gifting when appropriate
Nobody likes to give something that will not be used or enjoyed. If you are not sure what to get for a person, encourage him/her to share a few gift ideas with you and others so you can all chip in for something the receiver will appreciate. That is also a way of giving something “greater” while sticking to your budget. For gifts for children, the answer is easy: Purposit!
#7: Keep a tight leash on credit card spending
About 40% of Australians fund their gift purchases with credit card or loans as reported by ASIC. By the time the holiday season is over the average credit card debt is $1,666. Yes, triple 6! A sign of what’s to come if you don’t make sure you repay your card fast and do not pay interest. Afterpay is a good option as a budgeting pay tool as long as your spending does not increase on the back of it.
These are some simple rules my husband and I try to apply when planning our holiday season. What about you? Any planning or savings tips you’d like to share?
Are you ready to use Purposit for Christmas?
Purposit is a free, easy and secure platform where parents manage events- like Xmas and birthdays – and fund meaningful gifts for their kids with the help of friends and family.
With Purposit, mums and dads share gift ideas for their kids so family and friends can chip in for any of the gifts chosen, from a skateboard to swimming classes to movie tickets to a camping trip. Perfect for those many friends who are unsure what to get, are short of time or live far away.
