Christmas spending to top $22 billion despite rise in cost of living

DESPITE the soaring cost of living, Australians are tipped to fork out a staggering $22.1 billion over the festive season. So which state has the biggest spenders?

EXCLUSIVE

COST of living pressures are not stopping Aussies from splashing cash at Christmas time with the nation expected to spend a staggering $22.1 billion over the festive season.

While we’re getting skimpier on gifts — spending an average of $492 each on presents this year compared to $539 last year, we are still predicted to spend $1178 each on all things Christmas including food, alcohol decorations and travel.

Gen Y shoppers are expected to spend the most this Christmas while baby boomers will spend the least. Picture: Tim Carrafa

NSW residents are the biggest spenders — forking out $1359 each on average while Tasmanians spend the least at $715.

Research of more than 2000 people nationally by finder.com.au has forecast our spending this festive season and has also broken down the cost by generation.

Gen Y are expected to spend the most this Christmas while baby boomers will spend the least.

But even the youngest adults — Generation Z will fork out $326 this year on Christmas presents alone.

For those travelling over the holiday period, $832 is the average amount to be spent on travel.

The typical Aussie will spend an additional $141 on their Christmas meal each, as well as $133 on alcohol.

Aussies are set to spent $22 billion this festive season.

Bessie Hassan, Money Expert at finder.com.au, said retailers looked forward to the Christmas spending rush.

But she urged shoppers to not get caught up in Christmas overspend.

“Don’t get caught up in the silly season excitement by buying things you don’t need or overloading your credit card,” Ms Hassan said.

“You don’t want to be left with spending regret.”

Ryan Felsman, senior economist with Commbank, said Christmas shoppers were more than likely to be drawing on savings to fund their festive spending rather than adding to their credit card.

Shoppers are being urged not to end up with “spending regret”.

“Credit card debts are at a decade-low at the moment with the average card balance at $3062,” Mr Felsman said.

“Consumers are being conservative paying down debt but now the economic backdrop has improved and there is more job stability and a lower unemployment rate they are being more free with spending — but using debit cards rather than credit.”

Australian Retailers Association statistics forecast shoppers to splash more than $20 billion on grocery items this Christmas alone and executive director Russell Zimmerman said foot traffic has climbed by 7.5 per cent week-on-week across bricks and mortar stores.

“As we move into this last week of Christmas we are going to see foot traffic go through the roof particularly on the weekend,’’ he said.

“Most consumers realise they have this weekend but if they are working through they have next weekend that’s their last chance, the foot traffic in stores is increasing already.”

ARA has forecasted supermarket sales to increase in the last weeks of December, exceeding last year’s sales by 3.27 per cent.

Myer’s executive general manager of stores Tony Sutton has also predicted a busy weekend of shopping ahead.

“This year our top gifts include, Lego, Star Wars and Barbie toys for kids, personalised Tim Tam’s for the sweet tooth in your life, UE Boom and Bose portable speakers for music lovers and the Fit Bit Charge 2 for fitness fanatics,’’ Mr Sutton said.

David Jones managing director of clothing and general merchandise David Collins said the store was expecting more than 1 million shoppers this weekend alone.

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