BankSA has just released its latest Christmas spending intentions survey which shows that the average spend this Christmas per person will be $1,065, up from $957 in 2012 and $1,009 in 2011.
Christmas is supposed to be a happy and relaxed time of the year, but with all the additional expenses that may be associated with this season it’s no wonder people quickly lose their Christmas cheer. The costs of gifts, food and parties can turn Christmas into a stressful time of year.
Here are some tips to help you plan ahead for the Christmas season:
Set up budget and Christmas savings plan. Take into account all of your expenses including any spending leaks – these are the small regular expenses – like a daily coffee or bottled water – that don’t seem to cost much at the time of purchase but when added up could make a significant impact on your yearly budget.
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Consider opening a separate savings account specifically designated for your Christmas and holiday expenses. Look for an account that has low account keeping fees and a high interest rate. Set up a regular savings plan, where a regular amount is allocated from your pay or automatically withdrawn.
If you are expecting to put your Christmas expenses onto your credit card, and your card already has a balance owing on it, where possible you may consider making additional payments onto your credit card in the lead up to Christmas. In South Australia, the latest BankSA research shows that only 5% of consumers are planning a higher Christmas credit card spend this Christmas and 20% expect to spend less.
Draw up a list of who you will be buying gifts for and how much you intend to spend on each person when you begin your Christmas shopping – stick to it and don’t leave shopping til Christmas Eve when you are more likely to “panic shop”.
With family and friends, suggest setting a spending limit on gifts that everyone is comfortable with, or perhaps agree to a Kris Kringle or Secret Santa where everyone only buys one gift.
A little planning ahead can help you enjoy the festive season without “breaking the bank”.
