Higher cost of living impacting Christmas spending
Caution prevails, latest Homeloans research shows
A poll released by mortgage provider Homeloans Ltd shows that two thirds of Australians will be spending less on Christmas presents this year – with the majority choosing to holiday at home rather than go away.
“The rising cost of living is the key reason homeowners are choosing to spend less on Christmas presents this year,” says Homeloans’ national marketing manager Will Keall. “There’s been a resounding response to our survey question about why they’re cutting down on their spending this year: higher petrol, electricity, water, insurances, food costs...
“Other respondents have cited less disposable income, higher utility costs and now the carbon tax, which has affected their spending habits. A couple of people even stated that they are watching their pennies in case of a Euro meltdown.”
The majority of respondents of the Homeloans’ Christmas Spending Survey admitted they use their credit cards to purchase Christmas gifts (62 per cent), with only six per cent having a special Christmas saving account. And 70 per cent put a limit on each Christmas present..
Three quarters of respondents (76 per cent) admit they won’t be going away for the summer holidays, with many saying they just cannot afford it. “Staycations certainly seem to be the choice this year, and some of the respondents said they’ll be working on their homes or doing renovations, so any spare money is going towards this,” Keall says.
Despite limits being put on gifts, 62 per cent of those with children who believe in Santa say they do buy presents every year for their children, in addition to gifts from Father Christmas.
“Many people said that the Santa presents would just be small or token gifts this year,” Keall says. “But parents don’t want tough economic times to bring an end to the Santa fantasy!”
What are your thoughts? Are you watching what you spend over the holiday season?