St George Bank’s latest Christmas Family Finances report examines the financial frustrations of Australian households over the holiday season.

Peak season “school holiday” rates were voted the country’s biggest pet peeve, followed by the money required for Christmas presents and the heftier grocery bill at the checkout.

The report – which was conducted by Pure Profile in October and polled 1,027 respondents aged 18 and over – said 31% of Australians wait until the last two to three months before Christmas to prepare their holiday budget. Moreover, 23% of respondents followed a yearly dedicated plan, 16.8% used credit cards to fund their expenses, and 12.5% split their expenses between credit cards and savings.

This Xmas season, dig deep into your pockets

When it comes to enjoying the holiday season, some households will go all out, with 18% of households budgeting over $2,000 for the entire season. Thirty-percent of households budget $2,000, and 21% of households budget up to $1,000 for the entire season.

Ross Miller, general manager of retail banking at St George Bank, encourages all Australians to follow the lead of the 23% of households who had a year-long savings plan in place to reduce any unnecessary stress during the holiday season.

“More than a third of families are leaving it to the last minute to start saving, which is perhaps why they are feeling the pinch,” he said.

For the 16% of households who will fund their expenses via credit cards, Miller said such spenders should know how much they’ll need to set aside each week to pay off that amount in the New Year.

“Our research found $543 was the average on Christmas gifts alone, but more than a third said they would spend up to $2000 over the entire season. So placing even $10-$20 away in a separate account each week, for example, may provide immense relief come November.”

Single-parent families were less likely than co-parent families to fund their holiday expenses with credit cards, despite their childcare and household expenses being almost double over the holiday season. Instead, they were twice as likely to book holidays in groups and “parent swap” to save money on school holiday care.

Two in five Aussies said they would take a holiday this season, but only 10% of Aussies surveyed said they book their holidays more than six months in advance.

“Last minute holiday planning goes hand-in-hand with paying the highest of peak season rates that are frustrating the nation. Often booking well ahead is much cheaper and can help relieve such holiday concerns,” Miller said. 

Top tips for making your dollar stretch

A third of respondents said the holiday season is stressful but manageable. To help others cope, they shared their top tips to help save over the silly season.

One in five households sell their belongings to help fund Christmas spending, and will use a Secret Santa system to save money on Christmas presents. Twenty-eight percent of respondents said they start shopping for presents in July.

Grandparents are called by 50% of families to reduce childcare expenses, while the other 50% will use all of their annual leaves or tag team with their partner.

“The research indicates families with kids at home have a lot more stress, showing they are twice as likely to be working extra hours or a second job to fund this time of year,” Miller said. “We would encourage such families to be realistic about their holiday expenses and talk to their financial institution about setting up a dedicated savings plan a year in advance.”

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