Smart strategies to save on Christmas gifts this year
Australians fork out quite a lot for Christmas presents - between $500-650 per person each year.1 And 36 per cent of Aussies pay for their presents with credit cards, beginning the New Year with hundreds of dollars of credit card debt.
Credit card debt can affect your credit profile if you're not able to pay it back in a timely manner. So, what if you could start the New Year with more in your pocket, and less debt to pay off? There are numerous strategies you can employ to save money on Christmas presents, and we've put together some of the smartest ones to help you reduce your spending.
1. Buy online
Swapping the yearly expedition to the local shopping centre for online shopping could save you a lot. Did you know that the second-hand economy in Australia is worth $43.5 billion?2 This data comes from online classifieds website Gumtree. Its Second Hand Economy Report 2017 reveals the average buyer saves around $2,000 by buying second hand instead of brand new.3
The average buyer saves around $2,000 by buying second hand instead of brand new.
Gumtree, Craigslist and eBay are all sites you can visit to find used goods, and while some can be a little worse for wear, you can find presents that have barely been used and save a tonne.
If you do want to buy brand new, ASIC points out that many online retailers hold sales that you can take advantage of. So, instead of heading to the mall, browse online from the comfort of your own home and see what deals you can find to help reduce your Christmas spending.
2. Get your gifts from overseas
Yes, they may take longer to arrive, but purchasing gifts from outside Australia could surprisingly save you a lot. Buying from the United States in particular can be a savvy savings strategy.
Buying online - and from the United States in particular - could save you a lot of money on your Christmas gifts this year.
You'll need to factor in shipping costs, but Domain points out that a lot of retail products sell for way less in the states, pointing out that the Nutribullet, for example, sells for 88.75 per cent more in Australia than it does in the US.4 Aussies can also save a total of AUD$140, Domain estimates, by using Australia Post's ShopMate service to ship Dr Dre headphones from the US to Australia.5
Of course, you'll need to be organised if you purchase presents from overseas, as they take extra time to reach you. But this is a great savings strategy for those who are on top of things.
3. Personalise your presents
One way to reduce the amount you spend on your Christmas gifts is to make them yourself. There's no shortage of tutorials on YouTube to help you make your own gifts. Handmade cards, photo albums and videos showcasing happy memories are beautiful presents that will be appreciated and treasured by their recipients.
Families with kids can turn creating Christmas presents into a fun activity for the whole family by sitting down together to make DIY cards and gifts.
Get crafty this Christmas and make your own presents. It's a fun activity for the whole family that will also save you cash!
4. Reduce the number of gifts you need to buy
Christmas is always an expensive holiday, and if you've got a large family then you draw the short straw! Many people feel they need to buy a present for everyone in the family, even those distant cousins and partners of siblings. However, you don't need to do this! Instead, get together with everyone who'll be present on Christmas Day and organise a secret santa/kris kringle.
Everyone buys one present for one person, who doesn't know who their gift-giver is. The mystery creates excitement and means you can buy one really great gift, potentially saving hundreds!
Give your loved ones an experience they'll remember.
5. Swap smartphones for experiences
Our final tip to minimise your Christmas spending? Don't buy presents at all. Instead, give your loved ones an experience they'll remember. Canstar points out that you can save money at Christmas time by doing free activities like picnics in parks or going for a swim.6
Why not incorporate these activities into your gift-giving? Take your family to a park one weekend to have a picnic together, offer to help your parents out with their gardening or give your partner a massage. You can get creative with this, as the possibilities are limitless.
Saving on your Christmas gifts will mean you won't rack up as much credit card debt, which is great news to avoid a debt hangover in the new year and potential damage to your credit report! The better your credit health, the more likely credit providers are to grant you credit when you apply for it. Stay on top of your Equifax credit report with our range of subscription plans or request a free copy of your report to see where you stand right now.
Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstance before acting on it, and where appropriate, seek professional advice from a finance professional such as an adviser.
1 Australian Securities and Investments Commission. Australia's Christmas Spending. Accessed November 2017.
2 Gumtree. Second Hand Economy Report 2017. Accessed November 2017.
3 Gumtree. Second Hand Economy Report 2017. Accessed November 2017.
4 Domain. How to save hundreds on gifts this Christmas. Accessed November 2017.
5 Domain. How to save hundreds on gifts this Christmas. Accessed November 2017.
6 Canstar. 9 Ways To Stay Out Of Debt This Christmas. Accessed November 2017.