Key Points
- Around 8 per cent of surveyed Australians said they would cancel Christmas due to rising costs.
- A further 43 per cent said they would wind back celebrations and spend less.
- There was a generational difference in those cutting back spending.
Christmas is often a time for generosity, indulgence, and celebration.
But rising costs are causing many Australians to change their plans for the festive season - or cancel them altogether.
A nationally representative survey of 1,063 people conducted in October by comparison website Finder revealed 8 per cent of Australians - equivalent to 1.6 million people - were scrapping their Christmas plans due to the cost of living.
A further two in five (43 per cent) said they would be buying less than they typically do, while 41 per cent were planning to mark Christmas in the same way they did every other year.
Source: SBS News
For Gen X and baby boomers, that figure was 47 per cent and 31 per cent, respectively.
Women (52 per cent) were also more likely than men (34 per cent) to say they would be buying less this Christmas.
Source: SBS News
Tips to reduce Christmas costs
Sarah Megginson, personal finance expert at Finder, said while the festive season was "notorious " for being an expensive time of year, high inflation and interest rates were making it especially challenging for many.
The Consumer Price Index (CPI) , while the Reserve Bank of Australia last month .
"With mortgage repayments now costing thousands of dollars more per year than they did this time last year, Australian households have to look really closely at their budgets and they're having to make sacrifices," Megginson said.
While you might feel obligated to go all-out over the holidays, Megginson said taking care of your own finances was more important.
"Christmas is about spending time with your nearest and dearest; it's a time to unwind and refresh before the New Year," she said.
"It's not about getting into debt so you can afford to buy presents and perhaps still celebrate the way you have in the past."
Megginson's Christmas cost-saving tips include:
- Doing Secret Santa or Bad Santa instead of traditional gift-giving
- Splitting the costs of presents and food with others
- Making homemade gifts and
- Skipping presents in favour of giving your time and services to others
If you still want to spoil your loved ones and celebrate as you usually would, she suggested taking advantage of pre-Christmas sales.
"Just make sure you don't get caught up in the spirit of festive giving — spend what you can afford, and keep to a budget," she said.
