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According to the group’s Christmas Spending Survey, the rising cost of living is limiting household’s spending habits with 61 per cent of respondents planning to spend less on Christmas presents this year compared to previous years.
“A resounding theme was that finances were tight this year,” Homeloans national marketing manager Will Keall said.
“We had respondents tell us that as their children grow older they don’t need to buy as much, and therefore are spending less. Some have just bought new homes so are watching their budgets, while others are saving for big expenses such as holidays or because their families are expanding.”
The research revealed New South Wales residents are the most confident when it comes to Christmas spending with only half saying they’ll spend less this year.
Meanwhile Queensland residents are taking the most caution with 71 per cent of respondents stating the rising cost of living will affect how much they spend.
The survey also revealed that more people are relying on their credit cards to purchase gifts with the number increasing from 59 per cent in 2012 to 61 per cent this year.
Other findings of the survey revealed that 61 per cent have put a spending limit on each Christmas present for each family member while 10 per cent have dedicated bank accounts for Christmas spending.
[Related: New home sales continue to fall]
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