Are young Australians ‘saving’ Christmas?
They’ve been called unmotivated, self-obsessed and even ‘snowflakes’ but Generation Z may just have the most holiday cheer of all!
Homeloans’ annual Christmas Spending Survey is providing insight into the financial impact of the busy holiday season. While the survey reveals consumers of all ages plan to trim back on Christmas spending this year, it’s the youngest Australians who are doing the most throughout the year to make seasons bright.
Around four out of 10 Australians aged 18 to 24 actively save during the year to minimise Christmas costs (39 percent). Only around 20 per cent of those 45 and older do the same. In total, only one in four Australians is actively save or setting money aside in preparation for the holidays.
What’s more is that younger Australians buy gifts for a similar amount of people as older Australians and plan to spend a similar amount.
“The demands of the holiday season increase every year. Lists are getting longer, with around 60 per cent of Australians buying presents for five or more people. Shoppers are looking for creative ways to minimise the cost, but many are missing out on the opportunity to save when the demands aren’t quite as high,” says Will Keall, Head of Marketing, homeloans.com.au.
Tightening Santa’s belt
The majority of Australians (64 per cent) plan to spend less on Christmas this year. Keall says the rising cost of living remains a driving factor in the decision.
“Many of those surveyed cited growing families with more expensive wish lists, tight budgets and other financial stresses as the reason they want to reduce their spending. Families are also purchasing gifts during sales at other times of the year to save money during the holidays.”
In fact, more than half of Australians are picking up presents at other times of the year. This is especially true for shoppers in Victoria and New South Wales, where 60 per cent buy in advance.
‘Tis the season for spending
Despite most consumers wanting to cut back on seasonal spending, many still plan to spend over $500 on Christmas presents for those on their nice list. Nationwide, around 35 per cent plan to spend $500 or more on gifts. Many consumers will also rely on credit cards to cover Christmas shortfalls.
“Managing cash flow can become a challenge for growing families, especially during the holidays. This may explain why half of those aged 45 and older will rely on plastic, compared to just 27 per cent of younger Australians,” adds Keall.
Regardless of how much shoppers drop on gifts, more are turning to ‘clicks’ instead of ‘bricks’ to tick off their lists. Not surprisingly, Australians ages 18-34yo are the biggest online shoppers, with 58 per cent expecting to complete at least half of their Christmas shopping online. That’s in stark contrast to just 33 per cent of those aged 45 and older who say the same.