The Spending Hang-Over

For the first time in the nine year history of the Christmas Spending Index, more Australians are looking to their debit and EFTPOS cards instead of their credit cards to pay for their Christmas gift shopping.

Cash payments are also on the decline, with only 20% of shoppers relying on this traditional payment method for their Christmas spending.

As part of the annual Christmas Spending Index, the Retail Council looked at shoppers spending behaviours and preferences and payment methods for the Christmas period. The Retail Council is the representative group for the nation’s leading retailers.

Steve Wright, Acting CEO of the Retail Council said  “This year, 40% of Aussies will reach for their debit cards at the tills while doing their Christmas shopping, compared with 35% planning to use credit. In 2015, credit use was around 37%, and debit only 32%”

Interestingly, women are much more inclined to use debit than men, relying on funds in the bank accounts to pay for their Christmas gift purchases. Men, on the other hand, are using their credit cards.

So what if you’re in the 35% using a credit card? Well it’s time to prepare now for that spending hang-over. Here’s how:

Wants from Needs

My 15 year old daughter informed me this week that she “needs” a new bikini. I said “what’s wrong with the 7 you have?” Apparently her friends have all seen them so another one is required….dream on sunshine.

Kids will always tell you they need something. Here’s what I do. I leave the needs to grand parents as they are very keen to purchase these types of gifts. I let the grand parents know that the kids need new pajamas if they’ve grown out of them or some t-shirts and shorts for summer. Then I look after the wants (or want as it’s usually only one due to cost).

Impulse Buying

This time of year, retailers are looking to move a lot of stock so you will find some great bargains. Remember, it’s not a bargain if you don’t need it.

Spending Triggers

Ask yourself these questions:

• Do you feel driven to buy extravagant gifts as soon as the mall’s Santa shows up or when holiday decorations pop up in the stores?
• When you have a rough day at work, do you crave retail therapy to feel better?
• When you’re out with old friends, do you insist on paying the bill for everyone?

There’s no right or wrong answer to these questions; they’re posed to help put your spending in perspective. If certain items or little luxuries will influence you to overspend, then try to avoid them.