Reduce the hip pocket pain by starting your Christmas spending plan now

Christmas is less than two months away and experts say there are ways to get organised to avoid being caught out financially. SEE OUR TIPS

Christmas is less than two months away and there’s a good chance many people won’t have given it any thought yet.

The festive season is one of the most expensive times of the year and it often leaves Australians with a wounded wallet when they enter the new year.

New research by Suncorp quizzed 1500 Australians and found the average amount shelled out during the Christmas period was $470 on presents and celebrations.

And women are likely to spend more: $506 compared to $427 for men.

But, worryingly, one in three people don’t bother budgeting for their celebration spending.

Elisha Olsen is renovating her home and said she was more budget-conscious than ever before.

Elisha Olsen with her children, Saxon, 6, and Xavier, 8, preparing Christmas gifts. Picture: Steve Pohlner.

She has started planning ahead for Christmas by buying presents, wrapping and decorations to minimise the cost hit come December.

“I’ve always bought presents well before Christmas to be organised and make sure I get nice presents and don’t rush out buying things just for the sake of it,” Ms Olsen said.

“I love shopping and I love a bargain, so I look for things that are on sale throughout

the year.”

She also buys gifts at outlet stores to help reduce her costs.

Suncorp head of consumer spending Chris Fleming said given Christmas was approaching quickly, Australians needed to start planning as soon as possible.

“It’s definitely not too late to get organised,” he said.

“A good way to do that is to set up a dedicated bank account for your festive savings and spending.

A good place to start is to transfer any money you have left over from the

end of the week into that dedicated account.”

If Australians set a budget of $100 per week now, they would build up $800 in savings in the run-up to Christmas.

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Crown Money Management chief executive officer Scott Parry said “too many people wait until December to buy gifts and they turn to their credit cards in a panic”.

“It’s really good to look back on last year and work out where you overspent on Christmas,” he said. “See if you can cut back and making a limit on a gift-giving amount.”

He also suggested working out an overall amount you planned on spending on gifts and calculating how much cash you needed to stash.

“Also consider buying experiences that they can remember rather than material gifts,” Mr Parry said.

@sophieelsworth

CHRISTMAS SPENDING

• Start saving if you haven’t already.

• Set up a dedicated Christmas bank account.

• Work out among family and friends who to buy for.

• Make bookings before they get more expensive.

Originally published as Reduce the hip pocket pain by starting your Christmas spending plan now