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How Australians are spending their money this Christmas
More than half of Aussies are refraining from big purchases this Christmas
as rising living costs impact holiday spending
Written by
Sarah Grealy
Edited by
Ellie GarranA survey conducted by comparison site iSelect in November 2024 of over 1,500 Australians revealed that more than half (65%) of Australians are not planning to make any major purchases this holiday season. Given the ongoing rise of living costs and widespread economic uncertainty, the findings highlight a growing trend of cost-consciousness, with many Australians opting to scale back on extravagant Christmas spending.
Spending trends by generation
The survey also shed light on the generational differences in Christmas spending. Of those surveyed who are planning big purchases, baby boomers are expected to spend an average of $1,042.50, the highest of any age group.
In contrast, millennials are predicted to spend an average of $801.70, while gen Z anticipates spending the least of all, with an average of $571.10. Gen X falls in between, with an average spend of $654.20.
What Aussies are buying
While many Australians are tightening their belts, there are still a number of big-ticket items on their Christmas shopping lists. Some of the more extravagant purchases include luxury items such as cars, diamond rings, and jet skis. Air fryers continue to be a popular gift this year, along with other electronics like smartphones, TVs, and laptops. For the more tech savvy, items such as cryptocurrency and Virtual Reality (VR) headsets are on the shopping list.
Millennial Christmas spending
For millennials, nearly half (49%) are choosing to forego large gifts as they try to save money, with 37% of them prioritising savings over shopping. Eleven per cent of millennials can barely afford living expenses and are adopting a more cautious approach to spending over the holiday break, in line with broader economic challenges as many Australians navigate rising living expenses.
Cost-of-living struggles
The survey results reveal that many Australians are struggling with the ongoing cost-of-living crisis. A notable 12% of survey respondents reported having difficulty affording basic living expenses, signaling that financial pressures are significantly shaping holiday spending decisions.
This year, Christmas spending in Australia presents a mixed picture. The overall trend, though, is one of restraint, with many Australians, particularly millennials, scaling back on big-ticket items due to financial concerns. The survey suggests that the ongoing cost-of-living challenges are a central factor behind this cautious approach to holiday shopping.
iSELECT’S TOP TIPS FOR SAVING MONEY THIS CHRISTMAS
Review your plans and policies regularly
Needs and circumstances change over time. When it comes to insurance (such as health insurance, home and or contents insurance or car insurance), regularly ask yourself what you need to be covered for and whether your current policy or plan stacks up. You could be paying for things you don’t need, and not covered for things you do.
Check your health insurance extras
Most policies for health extras cover are set to reset on 1 January 2025. If you do have health insurance, check whether you have used all your extras cover. A recent survey revealed that the vast majority (86%) of Australians who have health insurance haven’t used all their extras.1This data was drawn from a commissioned survey executed by Pure Profile, conducted on behalf of iSelect in October 2024. We surveyed 1,003 Australians to ask whether they had used their extras benefits at the time of response.
Shop around
Some Aussie households may think ‘loyalty’ is rewarded when it comes to insurance and or utility providers, but that’s not always true. In fact, providers often offer better rates or premiums to attract new customers than those available to existing customers. Whether it’s your energy plan, home and contents insurance, health insurance policy, or home loan deal, a comparison service such as iSelect can see if we can help find you any lost savings.
Consider the other ways you could save
Some insurance companies may give you a discount on your premiums if you opt for a higher excess. Also, around certain times of the year, insurers (particularly health funds) may offer incentives, and that could be a good time to shop around and take advantage of any deals and offers. Remember, though, a good deal doesn’t necessarily mean the cheapest. Make sure any policy or plan is suited to your needs.
About the Survey
This data is drawn from a survey executed by i-Link, conducted on behalf of iSelect in November 2024. It is a nationally representative sample of 1,500 Australian consumers, aged 18 years and older.
The data about health insurance extras was drawn from a survey executed by Pure Profile, conducted on behalf of iSelect in October 2024. We surveyed 1,003 Australians to ask whether they had used their extras benefits at the time of response.
iSelect does not compare all health insurance providers or policies in the market. The availability of policies will change from time to time. Not all policies available from its providers are compared by iSelect and due to commercial arrangements, your stated needs and circumstances, not all policies compared by iSelect are available to all customers. Some policies and special offers are available only from iSelect’s contact centre or website. Click here to view iSelect’s range of providers.
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- 1.This data was drawn from a commissioned survey executed by Pure Profile, conducted on behalf of iSelect in October 2024. We surveyed 1,003 Australians to ask whether they had used their extras benefits at the time of response.