A frugal festive season

Cut-price frivolity amid cost-of-living pressure

RESEARCH has revealed the cutbacks and sacrifices Australians will make this Christmas to survive the country’s ongoing economic crisis.

While the festive season is usually the time when families like to splurge on extravagant gifts for their loved ones, a harsh reality has set in that they cannot afford as much this year.

A survey from Compare the Market found that more than 40 per cent of Australians believed they would spend less this Christmas than they have in the past.

In addition, 8 per cent said they would pay closer attention to sales and discounts during the holidays.

Respondents cited the Reserve Bank of Australia raising interest rates for the sixth consecutive month earlier this week and rising cost-of-living pressures as reasons why they would be tighter with their wallets.

Compare the Market spokesman Chris Ford said it was understandable consumers were taking a more conservative approach with the cost of essentials such as groceries and fuel continuing to go up.

“It’s shaping up to be an expensive end to 2022 and with Christmas fast approaching, Australians will be looking for ways to reduce financial stress this festive season,” Mr Ford said.

“We’ve seen energy bills skyrocket, the price of groceries hit new highs, the halving of the fuel excise end and our insurance premiums increase – it’s hardly surprising that around half of Aussies will be spending less or looking for savings this Christmas.”

Australians are not only changing shopping habits, however, but are also looking at the decisions they can make to help make ends meet.

More than 35 per cent of households will not put up Christmas lights or will put up fewer than they did in the past this summer.

This was accompanied by 23.8 per cent saying they will run the aircon less, while 10.7 per cent will ditch the extra fridge or freezer.

“Some electricity bills around Australia have doubled in the past few months due to the worsening energy crisis, and things like switching off unused appliances or ditching the spare fridge can have a significant impact on lowering your overall bill,” Mr Ford said.

“Switching off that spare fridge or freezer can save as much as 13 per cent on your bill, while we know unused appliances can add around 10 per cent to your bill.

“Making these small changes is one of the easiest ways to save as we head into one of the most expensive times of the year.”

On average Australians will spend $716 on Christmas this year, though that amount varied greatly when broken down by state.

Mr Ford said people in different states had differing amounts that they could afford over Christmas.

“Those in NSW will spend around $100, or 14 per cent more than the national average, this Christmas, while Victorians and South Australians will spend slightly more as well,” he said.

“Conversely, it’s looking like a frugal Christmas for West Australians, with the average spend around $100 less than the national average.

“Respondents from the Sunshine State anticipate spending 11 per cent less than the national average.”