Aussie mum used coffee bill to save thousands throughout the year for Christmas presents
Australian mother Erinne Dragosetti was able to save herself just over $1200 in the lead-up to Christmas – and she says anyone can do it.
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Christmas isn’t a cheap time of year, with presents and food all taking a toll on Aussie bank accounts.
It’s the time of year where people throw caution to the wind and their money to the credit card.
But one Australian mother was able to put her family’s coffee habit to good use and save herself just over $1200 in the lead-up to Christmas.
Erinne Dragosetti, a mother-of-two, said at the beginning of the year she sat down with her husband to work out how to have enough for Christmas.
“My husband and I realised we spend around $20 a week each on coffee so we decided that at the end of each month we would sit down and calculate the total amount and match that for savings for Christmas,” she said.
Ms Dragosetti said they decided to save in cash because it provided less temptation to spend and meant that spare coins could also be used.
“We have a big bowl that we just throw money into that sits tucked away out of sight so we aren’t tempted to access it,” she said.
It was also a great way to track how much the family spent on presents, rather than just guessing, Ms Dragosetti said.
Many Australians, like Ms Dragosetti, remain unaware of just how much they spend at Christmas until January hits and more than one in five struggle to pay household bills.
Research from MyState Bank found that two-thirds of Australians find Christmas a stressful time on their finances with nearly half admitting they do not have a budget for the extra expenses such as gifts, food, decorations and alcohol.
“The cost of buying gifts, entertaining and travel can really add up, leaving many people struggling to meet basic household expenses when January comes around,” said MyState general manager of digital and marketing Heather McGovern.
The key, though, was to follow Ms Dragosetti’s lead and put a little away each month to prepare for the big event.
“The key is to save throughout the year, set a spending budget and shop around to find savvy ways to save,” Ms McGovern said.
Ms Dragosetti’s savings technique were quite savvy and reflective of many consumers, said financial Adviser Canna Campbell, founder of Sass Financial.
“A lot more families are becoming more savvy and planning for Christmas by putting cash away to prepare for it and help ease the Christmas burden,” she told news.com.au.
Ms Campbell said Ms Dragosetti was right to save in cash and not use a deposit or bank system.
“Always save in cash with any short-term expense. You don’t want to gamble or take silly risks if you don’t have the benefit of time,” she said.
Being prepared is the number one tip Ms Campbell gives to her clients every season in order to not overspend.
“Don’t get in a mad panic and throw money at the problem out of guilt. Write a list of people and look at what you have saved up and divide that among the people you need gifts for,” she said.
Ms Campbell also advised her clients to look beyond materialistic goods, especially if you were looking to save money.
“If you are strapped for cash just say to a friend you’ll give 10 hours of babysitting work instead of a present or something like that. Get creative and give an act of service rather than a stupidly expensive present.
“Another idea if you are struggling and want to do something thoughtful is to donate to a friend’s favourite charity.
Ms Dragosetti said her family planned to find ways to give back to the community through their gifts this year.
Specifically, they would look at helping rural firefighters.
“This year instead of giving a mug or chocolates to the teachers at school and daycare we decided to donate to the RFS in their name. We have been lucky to avoid devastation but the fire season has only just begun and we want to show our support for the long road ahead,” Ms Dragosetti said.
PayPal data found that millions of other Aussies like Ms Dragosetti were also planning to give back to the RFS, said PayPal Australia’s shopping expert, Danielle Grant.
“It’s clear that this holiday season, Aussies want to give better and support causes that are close to their hearts. And with our rural communities being hit so hard this year by both devastating drought and fire, it’s these causes that Aussies most want to support,” she said.
PayPal has partnered with the BuyFromTheBush campaign to allow Australians to buy presents for loved ones but also support the rural communities that are doing it tough.
“PayPal has partnered with #BuyFromTheBush to create a gifting portal which features a range of homegrown businesses from rural Australia which offer unique and carefully handmade gifts. We want to help Aussies nail their gift list and support our rural communities by buying from the bush this Christmas,” Ms Grant said.
FINANCIAL CHRISTMAS SOLUTIONS
Ms Dragosetti’s method of putting cash away each week is a great way to save money, but for many people, particularly younger generations, cash is not a realistic way to save.
The use of cash is slowly disappearing in Australia, but fortunately there are now ways to not only save but spend more wisely this Christmas.
Neobank 86 400 deposits and payments lead Belinda Stewart encouraged people to start saving as early as possible.
“The most effective way to save is to start early, tuck money away regularly and resist the urge to dip into it, which can be hard if you know there are dollars hidden in the room next door,” she said.
Ms Stewart said families had to find a method of saving that worked for them but using cash did mean they could miss out on interest.
“While withdrawing cash is certainly one way to save for Christmas, it does also mean you miss out on the chance to earn interest on those savings,’ she said.
“We actively help customers reach their savings goal quicker by giving them a great bonus interest rate and reminding them how much they need to deposit that month in order to qualify.”
Low-interest credit cards are also available to those who did not prepare for Christmas in the months leading up to the event.
Latitude Financial Services head of marketing for cards Nidia Stoik told news.com.au it was important to get the right card, one that would allow users to spread their spending across a period of time while incurring minimal charges.
“If it’s not possible to pay off your credit card in full each month, it’s important to check you are using a low-rate credit card with a long interest-free period. This means you can split your festive shopping over two pay cheques without paying any interest on your gifts.”
Ms Stoik agreed with Ms Campbell and said the best advice was always to have a plan and budget beforehand.
“Always have a plan, budget and forecast. Make sure to do some research rather than buying impulsively. These days it’s so easy to look online and compare prices to make sure you’re getting the best deal on everything you buy,” she said.
Buy now, pay later schemes like Afterpay are also available on most major retailer websites, and Ms Campbell said when used responsibly they were a good way for people to purchase goods without a huge debt looming over their heads.
“If you need to budget in last-minute gifts then Afterpay can be a good thing to get into but always try to save up the money first. It is not a good solution to use Afterpay all the time,” she said.
Ms Dragosetti said her family would stick to cash next year but recommended to all families to save up before the big day in order to enjoy Christmas.
“We are already done shopping for the kids, and I feel like in a way it’s given us the ability to enjoy December again without the panic that we won’t be able to afford it,” she said.
Originally published as Aussie mum used coffee bill to save thousands throughout the year for Christmas presents