Nearly half of young Aussies expect increased Christmas spending despite financial pressures
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Team MONEYME|03 December 2024| 3-minute read
With the holidays quickly approaching, we asked 1,107 Australians about their spending habits for the upcoming festive period, uncovering the differing generational attitudes to spending in 2024, compared to previous years. The survey found that, despite cost-of-living pressures, over a third (35%), representative of approximately 7 million Aussies, expect to spend more this festive season than last year, with Millennials and Gen Z leading the charge.
Millennials and Gen Z feeling the pinch yet spending big
The younger generations are committed to this year’s festivities despite mounting cost of living pressures with nearly half (49%) of Millennials expecting to spend more during festivities, compared to just 28% of Baby Boomers. Gen Z isn’t far behind, with 38% expecting higher spending compared to last year.
While the older generations tighten their belts, these Millennials estimate spending an average of $1,531 more than last year, followed by Gen Z at $1,294 and Baby Boomers at just $420 more.
While wallets seem wide open this year, it’s not without sacrifice.
Cutbacks in the Christmas feast
According to the survey, higher inflation is forcing many Aussies to rethink their Christmas plans. Nearly two-thirds (64%) are cutting back, with ‘dining out’ (33%) and certain ‘grocery foods’ (37%) topping the list of sacrifices. Festive favourites like turkey (13%), oysters (16%), and prawns (14%) may not make it to the table for some households this year.
Also on the chopping block are travel (25%), alcohol (24%), and even gifts (24%).
Interestingly, Gen Z (73%) and Millennials (71%), are more likely to cut back than older generations, despite expecting to spend more overall. They’re also the generations that will be trimming grocery budgets (Gen Z: 43% and Millennials: 41%) compared to older generations (Gen X: 32% and Baby Boomers: 35%).
Funding Christmas with credit
Three in ten Aussies (31%) plan to use credit cards to finance their festive fun. Millennials and Gen Z are more likely to turn to credit cards, with 39% of Millennials and 37% of Gen Z planning to use them compared to just 26% of Baby Boomers.
Millennials are also three times more likely than Baby Boomers to use Buy Now Pay Later services (20% vs 6%) and are the most likely generation to take out a personal loan (7%). Gen Z is not far behind with 5% planning to take out a personal loan to cover festive expenses.
Another 21% of Gen Z say they’ll rely on the ‘Bank of Mum and Dad’ to fund their celebrations.
A long road to financial recovery
With inflation and anticipated increased spending, financial recovery is a concern for many Aussies with over half of survey participants (51%) saying it will take some time to bounce back. Millennials (65%) and Gen Z (62%) are most likely to feel the strain.
However, Millennials expect they’ll bounce back sooner at three to four weeks (24%), compared to Gen X with a longer recovery period of three months or more (15%).
How Aussies are navigating the festive financial squeeze
While spending may be up and recovery periods stretching into months, Australians are finding creative ways to celebrate and not let the cost of living pressure dampen their spirit. From tightening grocery budgets to having more at-home celebrations, the festive season looks set to reflect the resilience and adaptability of Aussie households.
For those looking to budget better, MONEYME is here to help with smart solutions for savvy spenders.
A MONEYME personal loan could be a smart way to fund your festive activities this year. With rates lower than the major banks and significantly better than most credit cards, it’s a cost-effective choice. Plus, you can check your rate and estimated repayments for free before you apply without impacting your credit score.
Why wait? Discover your rate and repayment options today!
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