By: Bec Harris
As Australians head into the festive season, many households are feeling the pressure to spend big.
But according to financial expert Jason Featherby, the best Christmas isn’t the most extravagant one, it’s the Christmas you can actually afford.
Jason reminds us that the heart of Christmas has little to do with price tags. “Christmas is not about how much you spend. It’s about who you spend it with.”
The Pressure to Spend Is Real
New data shows that Australians continue to feel the financial strain at Christmas time. Despite rising costs of living, spending expectations remain high.
- The average Australian will spend around $500 on gifts.
- Another $500 goes towards food and drinks.
- When you add in decorations, alcohol, social events, and travel, average spending reaches $828 per person.
That means a household of four could easily spend over $3,000 during the Christmas period. And for many, that bill does not stay in December.
Debt That Lasts Long After the Tinsel Is Packed Away
Around one-third of Australians go into debt to cover Christmas costs. Buy now, pay later services, credit cards, and personal loans remain the most common tools.
Jason says the consequences can stretch far beyond the holiday season.
- Average Christmas-related debt: $634 per person
- 43% expect to clear their debt within five months
- 20% will take six to eleven months
- 15% will take over a year
With some credit cards charging interest rates above 20%, even small Christmas overspends can turn into long-term financial stress. “You have a day or two of good times, and then you’ve got to pay it down. The interest becomes like quicksand.”
Tips to Keep Christmas Affordable
1. Shop Early
Shopping in advance helps avoid impulse buying and the panic spending that often happens in the final weeks of December. Many Australians now take advantage of Black Friday and early sales.
2. Set Gift Limits
Agreeing on a spending cap with family and friends helps everyone stay on track. Jason encourages families to use Secret Santa or Stealing Santa games to reduce costs and increase fun. “You’re not only keeping spending under control you’re having a bit of fun doing it.”
3. Save Gradually
It may be too late for this year, but starting a small weekly Christmas savings fund in January can make next December much easier.
4. Make a List and Budget
Only 50% of Australians create a Christmas budget. Planning who you’re buying for and how much you’re willing to spend makes a significant difference.
5. Delay or Skip Gifts With Your Partner
If both partners agree, waiting until after Christmas sales or skipping presents altogether can remove financial pressure.
6. Focus on Memories, Not Money
Featherby repeatedly emphasised that the true value of Christmas isn’t found in presents but in presence. “You’ll remember the memories. You won’t remember what you got for Christmas.”
If You Do Go Into Debt
For those who find themselves in financial trouble after Christmas, Featherby offers one clear piece of advice: act quickly.
- Pay off the highest-interest debt first
- Temporarily scale back extra mortgage repayments
- Review spending and cut non-essentials until the debt is cleared
- If needed, speak to your bank early for help or hardship options
A Christmas Worth Remembering
Despite rising interest rates, increasing living costs, and pressure to spend, Featherby offers reassurance. A meaningful Christmas doesn’t require going into debt or proving anything financially. Time with family, good food, and a break from routine can be just as special without overspending.
Article supplied with thanks to Sonshine.
Feature image: Canva
