Australians will cut holiday spending by $1.6 billion this year.

As the festive season approaches, Australians are taking a closer look at their spending habits. According to recent data, it is projected that shoppers will spend $1.6 billion less this year compared to last year. It seems that the rising cost of living has taken a toll on holiday budgets. The latest research from Finder reveals that the average Australian plans to spend $1357 on Christmas, which amounts to a total of $28.4 billion nationwide. This is an eight percent decrease from the $1479 spent in the previous year.

Personal finance expert at Finder, Sarah Megginson, explains that this decrease is due to concerns over money. She states, "The festive season can be financially stressful, particularly after a challenging couple of years marked by inflation and high interest rates." It's no surprise that households are cutting back on their Christmas budget by an average of $122.

When it comes to gift-giving, Australians are projected to spend an average of $359 each, totaling $7.5 billion. However, this is a four percent decrease from last year's average of $373. Despite this, 72 percent of respondents still plan on buying presents for their loved ones.

Aside from gifts, food and dining are also a priority for Australians this holiday season. The data shows that the average Australian plans to spend $244 on food, $173 on going out, and $145 on alcohol. Interestingly, Australians are expected to spend 30 percent more on dining out this year compared to 2023.

To make the most out of this holiday season, Megginson stresses the importance of planning ahead and setting a realistic budget. She suggests alternative gift-giving options such as Secret Santa or contributing to a potluck dinner, as well as giving the gift of service like cooking a special meal, babysitting, or helping out in the garden. She also reminds us that it's still possible to celebrate without accumulating debt or financial stress.

For those looking to save money this Christmas, Finder recommends finding better deals on car insurance or refinancing to a cheaper home loan. Additionally, agreeing on gift spending limits with friends and family or opting for DIY homemade presents can also help boost savings.

In the midst of all the holiday chaos, it's important to remember to stay on top of our finances and make smart spending decisions. So, let's take a deep breath, plan wisely, and enjoy the season without breaking the bank. And for those who want to stay updated on all the latest news, sports, politics, and weather, be sure to download the 9News app for convenient notifications straight to your smartphone. Happy holidays!

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