As the festive season approaches, Christmas spending in Australia is expected to rise again in 2025. Many Australians are excited to celebrate, yet increasingly aware of rising living costs, higher mortgage repayments, and long-term goals such as buying a home or growing an investment portfolio.
Whether you’re saving for property, managing a mortgage, or expanding your investments, thoughtful planning can help you enjoy Christmas without losing financial momentum.
Christmas Spending Trends in Australia 2025
- Australians are projected to spend approximately $1,479 each on presents, food, alcohol, dining out, and travel this Christmas season.
- Specifically, shoppers are forecasted to allocate $11.8 billion on gifts, marking a $1.6 billion increase from the previous year.
- This uptick indicates a robust festive spirit, with 76% of consumers planning to spend the same or more than last year, averaging $660 on gifts alone.
These numbers show a strong desire to celebrate — but it doesn’t necessarily mean people are spending freely. Instead, many are shifting and reprioritising how they spend.
Economic Pressures Shaping Festive Budgets
With the Reserve Bank’s recent rate rises pushing mortgage repayments higher, around 30% of households with a mortgage are feeling increased pressure.
This has led to more intentional Christmas planning. While total spending is rising overall, many households are finding ways to stretch their money further, including:
- Setting gift-giving limits (18%)
- Skipping holiday travel (13%)
- Starting side hustles to boost income (8%)
- Choosing homemade gifts (8%)
These shifts show that Australians are becoming more intentional about where their money goes.
How to Balance Christmas Spending With Your Financial Goals
Managing money well during the festive season can help ensure your long-term goals—such as homeownership, debt reduction, or building your investment portfolio—stay on track.
- Create a Realistic Christmas Budget
Set a clear spending limit that fits comfortably within your financial situation. Ensure your essential expenses—especially mortgage repayments—remain untouched.
- Prioritise What Matters Most
Focus your budget on meaningful gifts, traditions, and experiences. Cut back on low-value or impulse purchases.
- Shop Smart and Use Sales to Your Advantage
With 70% of Australians prioritising discounts and promotions, take advantage of seasonal sales to stretch your budget further.
- Avoid High-Interest Debt
Buy Now, Pay Later services and high-interest credit options may feel convenient now but can affect your borrowing capacity—and potentially complicate future mortgage applications.
- Automate Your Savings
Set and forget. Automatic transfers to your savings or investment accounts will help you maintain progress even during the busy festive period.
Enjoy Christmas—Without Compromising Your Financial Future
The festive season is a time to connect, celebrate, and reflect. With a thoughtful plan, you can enjoy Christmas 2025 without sacrificing the financial goals that matter most.
If you’d like personalised guidance, our team is here to help. Reach out today to discover how you can stay in control—even during times of high inflation and rising household costs.
