As the cost of living continues to rise, Australians are planning to spend less on Christmas this year, with a new study from PayPal revealing that 75% of Aussies will be cutting back on their spending.
Key Finding from PayPal:
- Majority of Australians (75%) planning to spend less this Christmas – up
from 40% last year
- No. 1 strategy for keeping costs manageable is to shop the online sales
- 81% of Aussies will buy gifts online this year
- Half of Australians (49%) say you can still have a great Christmas if you
The top strategy Australians are using to keep Christmas costs in check is to shop online during the sales periods, with 38% saying this is their go-to method. This is followed by half of Australians (49%) who said you can still have a great holiday season if you spend wisely, leverage the online sales and shop sensibly.
This year, most gifts will be purchased digitally with 4-in-5 Australians (81%) buying gifts online and 62% of Australians saying they will buy at least half their gifts online. This reflects that half of Aussies (47%) say the worst thing about Christmas is the overcrowded stores. Other reasons Australians shop the sales online is to have a faster and easier shopping experience (42%) and get better deals and prices (40%).
While 75% of Australians will be spending less this festive season, not everyone is cutting back in the same way. Some will be spending less on gifts (39%), others less on decorations and lights (also 39%), alcohol and drinks (35%) or travel and fuel (34%). A quarter of Australians (25%) say they’re not cutting back their spending at all this year.
PayPal Australia’s Head of Consumer, Jon Ashe, said that the research shows that Australians are still looking forward to Christmas, but they are being more mindful of their spending.
“It’s clear that Australians are feeling the pinch of the rising cost of living, but they are still determined to enjoy Christmas,” Ashe said.
“Shopping online during the sales periods is a great way to save money and get the best deals on gifts. PayPal also offers a number of features that can help Australians manage their spending, such as the ability to set a budget and track their spending.”
The research also found that the biggest concerns for Australians this Christmas are the increased cost of groceries (63%), the high cost of fuel (52%) and the cost of energy and utility bills (51%).
“We understand that many Australians are feeling financially stressed this Christmas,” Ashe said.
“PayPal is committed to helping Australians save money and have a great holiday season. That’s why we’re offering a range of features and benefits to our customers, such as PayPal Honey, which can help them find discount codes and offers, and PayPal PayLater, which allows them to spread the cost of their purchases over time.”