New data shows a festive feast is top of the Christmas wishlist amid the cost of living crisis

A traditional with a feast with family and friends looks to be a higher priority than gift-giving this Christmas as families struggle with cost of living pressures.

New Bank SA data shows this Christmas, people are cutting their spend on gifts, and pumping more into food for family get-togethers. Picture Dean Martin

Christmas is looking traditional with a feast with family and friends – chatting and enjoying shared company with thanks for the bounty and a salute to the cook – looking to be a higher priority than gift giving.

BankSA’s annual Christmas Spending Intentions research shows celebrating Christmas with family and friends over a meal this year is top of the list for 83 per cent of people, and ahead of gift giving at 72 per cent.

Amid cost of living pressures 28 per cent of people plan to spend more on food and groceries compared to last year.

About half of all households are setting a strict budget for gift buying and will be carefully planning their purchases in advance. This is particularly strong for the 18-34 age group, and women.

Mum Carol Tavares and her 2-year-old, Matteo, will be celebrating Christmas with food. Picture Dean Martin

Carol Tavares and partner Noel Koka will be spending the big day with friends with a shared meal with their son Matteo, 2.

“We are immigrants and don’t have family here but will be celebrating with a lovely meal with about 10 friends,” Ms Tavares said.

“Obviously gifts are important for Matteo but the whole spirit of Christmas is a shared meal and enjoying company. It is about people.”

The BankSA data suggests intended average spend per gift is lower this year at $50, down from $80 last year, and there is a 14 per cent increase in people planning to spend on gifts in the $20-$50 price range compared to last year.

The top three reasons given for being more budget conscious include rising cost of living expenses, general financial pressures, or a change in personal circumstances.

BankSA State general manager, business, David Firth, said while consumers were budget conscious this Christmas they were feeling more generous about spending towards celebrations with family and friends.

“Consumers are indicating they’ll be spending more on food and groceries as they look forward to the opportunity to catch up with family and friends, however they will be balancing their budgets by stretching their dollar further in other areas,” he said.

“Most people — 88 per cent — intend to use cash or savings for Christmas purchases, and consideration of using rewards and loyalty points to bolster their spending capacity is also higher this year as people look to maximise their available budgets.

“There’s good news for ‘bricks and mortar’ retailers with a shift towards shopping in department and specialty stores — 70 per cent, up from 64 per cent last year.

“More than half of households still prefer to purchase products made locally in South Australia, 54 per cent, up from 51 per cent last year.

Other survey findings include:

THE top three issues when Christmas shopping this year are cost, crowds and not knowing what to buy;

AVERAGE planned total spend for Christmas is $962;

THE 35-54 age group and 55+ age group plan to marginally increase overall spend this Christmas compared to last year while the 18-34 age group is looking to decrease spend this year;

THREE quarters of shoppers are budgeting under $100 for each gift, with an average anticipated spend of $50 per gift this year.

THE most popular gift options that are likely to be purchased for 2023 are: (1) gift cards and vouchers (70 per cent); (2) clothes (65 per cent); and (3) toys (62 per cent);

INTENTION to shop online decreased this year to 30 per cent, down 5 per cent from last year;

COST and whether the recipient will like the gift are key considerations.

Originally published as New data shows a festive feast is top of the Christmas wishlist amid the cost of living crisis