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Australians are tightening their spending this festive season, with shoppers expected to spend $1.6 billion less than last year as the cost of living continues to bite, according to new data.
The latest research from Finder found the average Australian planned to spend $1357 on Christmas – equivalent to $28.4 billion nationwide.
The figures show that's an eight per cent decrease compared to $1479 in 2023 ($30 billion nationwide).
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Personal finance expert at Finder Sarah Megginson said households were cutting their Christmas budget by $122 due to concerns over money.
"The festive season can be financially stressful, particularly after a challenging couple of years marked by inflation and high interest rates," Megginson said.
Australians this year are projected to spend $359 each on gifts alone, but spending is down four per cent compared to last year's spend of $373.
In total, $7.5 billion will be splashed on gifts, with 72 per cent of respondents planning to buy presents.
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Food and dining is also a priority for Australians this festive season.
Finder found Australians planned to spend $244 on food, $173 on going out and $145 on alcohol.
Surprisingly, Australians are expected to spend 30 per cent more on dining out than they did in 2023.
Megginson said to meet expectations this Christmas, it was important to plan ahead and set a realistic budget.
"Instead of gifts for all the people in your life, consider adjusting traditions, like doing Secret Santa or contributing to a potluck dinner, or giving 'acts as service' as a gift – cooking a special meal, babysitting for the night, or helping in the garden," she said.
"While Christmas may look a little different for many this year, it's still possible to celebrate without accumulating debt or financial stress."
To save this Christmas, Finder recommends offsetting higher spending by finding a better deal on car insurance or refinancing to a cheaper home loan.
Agreeing on gift spending limits with friends and family or choosing DIY homemade presents can also boost savings.
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