Balancing Cost-of-Living Pressures with Festive Cheer this Christmas

As the holiday season approaches, Australians are facing tough decisions when it comes to managing cost-of-living pressures while still trying to celebrate Christmas. According to a national survey by Pureprofile, 68% of people are influenced by cost-of-living pressures in their Christmas choices this year. Many are cutting back on spending, with younger generations feeling the impact the most.

Despite 74% of people setting a festive budget, 44% admit to regretting their spending in previous years. Balancing the desire to give loved ones gifts and enjoy the holiday season with financial constraints is a challenge that many are facing. With sales tempting people to overspend, sticking to a budget can be difficult, leading to potential debt traps.

Christmas travel plans have also been affected, with 51% of under-45s and 38% of over-45s saying their decision to travel has been impacted by the cost of living. However, some Australians prioritize travel as a non-negotiable expense, highlighting the importance of being with family and friends during the festive season.

According to Moneysmart, adults plan to spend an average of $783 on Christmas this year, with many using savings, credit cards, or buy now, pay later services to fund festivities. While some plan to spend less, others intend to spend the same or even more compared to last year. Cutbacks are expected in areas like gifts, holidays, and decorations.

However, for many Australians, making cutbacks is not an option as they struggle to survive. The Salvation Army warns that this Christmas will be especially hard for individuals and families facing financial hardships. Charities like the Salvation Army are gearing up to support those in need, with the annual Christmas Appeal aiming to raise $27 million to help those who are less fortunate.

As the holiday season unfolds, it's essential to set and track a realistic budget, avoid unnecessary debt, monitor spending, and be cautious of scams. Seeking help from resources like the National Debt Helpline is crucial if financial assistance is needed.