New data: Aussies slash Christmas spending as cost-of-living pressure hits home
Pure Public Relations
Key Facts:- 32% of Australians report higher financial stress compared to last year, with 64% saying cost of living will permanently alter their Christmas celebrations
- 69% of Australians plan to reduce Christmas spending this year, marking one of the largest festive budget reductions in recent years
- Young people are most affected, with 48% of Gen Z feeling pressured to overspend during Christmas, while 37% of all Australians would skip gift-giving if not for social expectations
- Rising costs of food, travel and social events are causing many households to opt for smaller gatherings and reduced gift lists
- CreditSmart advises early financial planning and credit report monitoring to avoid post-Christmas financial difficulties
New research from consumer education website CreditSmart reveals that the cost-of-living crisis is reshaping how Australians plan to celebrate Christmas this year, with many feeling financially stretched, socially pressured, and forced to cut back.
According to the findings, one in three Australians (32%) say they feel more financial stress than this time last year, and the impact on festive spending is significant:
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Two in three (64%) say the cost of living will permanently change how they celebrate Christmas.
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Seven in ten (69%) are planning to reduce their Christmas spending this year compared to last year, signalling one of the biggest cutbacks in festive budgets in recent years.
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One in three Aussies (35%) feel pressured to overspend at Christmas, with this pressure felt most strongly among Gen Z (48%).
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37% of Australians say they would skip Christmas gifts altogether if it weren’t for social expectations.
CreditSmart spokesperson and CEO of Arca, Elsa Markula, says the data shows Australians are reassessing holiday priorities and becoming more mindful about festive spending.
“We know that Australians are stretched and stressed, and the data shows that many are no longer willing to blow out their budgets just to meet Christmas expectations,” said Markula. “This year we’re seeing a clear shift toward more conscious, pared-back celebrations - and for many households, that change won’t be temporary.”
Gen Z and Millennials are feeling the financial and social pressures most acutely, with younger Australians more likely to overspend due to expectations from friends, family, or social media.
The research highlights that financial strain is affecting not just gifting, but the broader festive season. Rising costs for food, travel, and social events mean many households are choosing smaller gatherings, cutting down their gift lists, or setting spending limits.
Despite this, CreditSmart is urging Australians to stay informed and proactive about their financial health during the high-pressure Christmas period.
“Understanding your financial position early, including checking your credit report and staying on top of commitments, can help people avoid stress and prevent post-Christmas financial hangovers,” Markula said. “The more informed you are, the more empowered you’ll feel heading into the new year.”
The findings form part of CreditSmart’s ongoing mission to educate Australians about credit reporting, financial wellbeing, and the support available from lenders if individuals experience financial difficulty.
CreditSmart is an initiative of Arca, the industry group that represents banks, financial institutions and credit reporting bodies on credit-related matters in Australia.
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About us:
About CreditSmart:
CreditSmart is Australia’s trusted source for unbiased credit reporting information, designed to simplify credit reporting and help consumers take control of their credit health. Developed by industry experts, CreditSmart offers clear, accessible, and factual guidance to empower Australians to make informed financial decisions and navigate the credit landscape with confidence.
While credit plays a crucial role in the lives of 95% of Australians, a third of them have never checked their credit report. CreditSmart bridges this knowledge gap by providing independent, easy-to-understand insights on credit reporting, credit scores, financial hardship support, and identity protection.
About Elsa Markula, CEO of Arca:
Elsa Markula is the CEO of Arca, the peak body responsible for the CreditSmart initiative and the only industry association of its kind dedicated to making credit work for all Australians. Since joining Arca in 2013, she has played a pivotal role in drafting industry codes and standards that improve data protection and make credit more visible, accessible, and easily understood. Previously she worked at the Financial Ombudsman Service and in private practice as a legal practitioner.
Contact details:
Varsha Kumar, Pure Public Relations
0420 540 589