How to spend your holiday season wisely

Boost your festive finances by selling items you no longer want online, in a garage sale, or at a local buy-swap-sell. Cashing in on items like clothes, books, jewellery, furniture, or sporting equipment can make way for the new.

The items you no longer want could also be just the gift someone else is looking for this Christmas, so it’s a win-win.

Lists are great guard rails to help keep you on track.

Make a list for presents and how much you want to spend per person.

A list for entertainment, including food and drinks, may also be helpful to keep a check on spending.

Making lists and budgets aren’t particularly effective if you don’t keep an eye on the money going out.

Keeping track of your festive spending is the best way to avoid going over your holiday season budget.

Use an app, write it down, or keep track through your online banking.

When the Christmas decorations have been packed away, festive season debt may linger long enough to impact you throughout 2023. So, be careful with your credit card at Christmas.

According to Reserve Bank of Australia statistics,² there was around $39 billion in retail payments outstanding on credit and charge cards in Australia at September 2022.

Buy Now Pay Later options such as Afterpay and Klarna currently fall outside Australian consumer credit laws, meaning there’s less protection and regulation for consumers.³

Buy Now Pay Later may be one way to spread big costs out over multiple pay cycles, but they can easily end up costing you much more in fees.

Other tips that may help you manage Buy Now Pay Later spending include:

• Keep a record of your purchases
• Picking one provider and sticking with it – resist the urge to open accounts with multiple lenders
• Set payment reminders
• Check the fine print for your obligations and rights.

When you have checked everything off your list, it is time to stop shopping.

Try to avoid stopping by the shopping centres for any last-minute pick-ups or just to see what the shops might have.

If you can’t resist being part of the hustle and bustle of last-minute, late-night shopping, plan and budget for stocking stuffer purchases for this time.

You will get your shopping fix, buy something you need, and not blow the budget.

The period immediately after the holidays may be the perfect time to check over your budget and make plans for the new year. How did you do? Did you stay within budget? Were there places you could have cut back?

The days following Christmas are also synonymous with sales. This might be a chance for you to get a jump start on upcoming birthdays. This may be so much easier if you’ve stuck to your budget.