Australians’ holiday spending habits revealed
More than half of Australians plan to cut back on their expenditure this festive season with sensible spending top of mind, according to a recent survey undertaken by Australia’s largest independently-operated mortgage broker, Mortgage Choice.
The company’s annual Consumer Sentiment Survey asked 1,025 Australians how their spending habits this Christmas and festive season will compare to last year. The results show 43% plan to spend about the same and 5% plan to spend more, while 52% intend to spend less.
Local Mortgage Choice mortgage broker, Melissa Jackson said, “Our research shows that while the majority of Australians are struggling to cope financially with the rising cost of living*, a surprising 43% of survey respondents intend to spend the same amount during the Christmas and holiday period as they did last year, while one in 20 plan to increase their budget.”
“However, for the majority of Australians it is shaping up to be turkey without all the trimmings this year, as 52% of survey respondents try to cut back on their spending this silly season. Of those who are planning to reduce their expenses, 68% will spend less on gifts, 20% intend to cut back on going out and 12% will set aside a smaller budget for food and beverages.”
Melissa noted that the holiday period can be a time of lax spending and said that the survey was a timely reminder to keep this in check.
“We all know that December and January can be very expensive months so it is pleasing to see many Australians planning ahead to spend sensibly in the festive season and start the New Year without any financial hangover,” said Melissa.
“Interestingly, our recent annual Consumer Sentiment Survey also found that for 35% of Australians, a $2,000 windfall would be best added to their savings, 23% said they would pay down their credit card debt, 20% would be inclined to spend it at this time of year and wrapping up the top five responses, 17% said they would contribute the money to their mortgage.”
Here are Melissa’s top sensible spending tips to help you through the silly season:
Build a financial buffer throughout the year in preparation for the festive season. By repaying your home loan above the minimum amount and contributing more when you can, you may be able to redraw the additional funds in times of need.
Revisit your purchases from last year and make a list of everything that was left over or unused. Use this information this year to create a well throughout, detailed shopping list before you arrive at the shopping centre. This will help you stick to the plan and save you time and money spent on unnecessary items.
Introduce secret Santa and/or set a budget for each person’s gift. This will help to limit your expenses and encourage you to shop for a better suited and well priced gift rather than the first, convenient and possibly more expensive thing you see.
Budget for next year while everything is fresh in your mind. Start preparing your budget now, making sure to include expenses for food, beverages, outings and gifts, along with your general outgoings including any home or other loan repayments and utility bills. Decide now what you can prepay or do without next year.
Stick to the wish list and carry on spending sensibly over the long term to make next year’s festive season easier on the wallet, giving you more freedom to enjoy the time with your family and friends.
Visit Melissa Jackson’s website at www.mortgagechoice.com.au/melissa.jackson or call 0405 315 227.
* 55% of survey respondents admitted to dipping into their savings to cope with rising living costs.
For further information or to arrange an interview please contact:
0405 315 227
About the Mortgage Choice Consumer Sentiment survey
The independent online survey uncovered the concerns, financial plans, home loan needs and more of 1,025 Australian consumers. Market research company, Nine Rewards was commissioned by Mortgage Choice to conduct the 2012 Consumer Sentiment Survey in late November 2012. The generations were classified as: Gen Y: 1980-1994, Gen X: 1965-1979 and Baby Boomer: 1946-1964. Note, the figures in the written commentary have been rounded to the nearest whole percentage point.
About Mortgage Choice
Australia's largest independently-operated mortgage broker, Mortgage Choice has sourced a home loan for well over 350,000 people since 1992. It works with all manner of property finance borrowers via hundreds of franchises.
The company writes almost one in every 20 home loans in Australia by providing professional guidance on, and choice of, products offered by an extensive panel of leading lenders. Many of its brokers provide a broader service, helping customers source commercial and personal loans, asset finance and providing referrals for risk and general insurances.
Uniquely, Mortgage Choice pays its franchisees the same commission rate for home loans they write, regardless of rate paid by the lender a new customer selects, working in the customer's best interests to tailor a solution to them.
The company has no balance sheet or funding risk, and delivers strong profits and attractive yields. It listed on the ASX in 2004 (MOC) and is a member of the Mortgage & Finance Association of Australia (MFAA).
Recent recognition: 2012, 2011 Australian Broking Awards Major Brokerage of the Year - Franchise; 2012 Australian Broking Awards Best Training and Education; 2012 Australian Broking Awards Best Ethical/Social Responsibility Program; No.1 on The Adviser magazine's 2012, 2011, 2010 and 2009 Top 25 Brokerages list; 2012, 2010, 2009, 2008, 2006 and 2005 MFAA Awards Retail Aggregator/Originator of the Year; 2011, 2010, 2009 and 2008 10 Thousand FEET Top 10 Franchise list; 2010 Forbes Asia-Pacific Best Under A Billion list.
Mortgage Choice holds an Australian Credit Licence: no. 382869, issued by ASIC.
Visit www.mortgagechoice.com.au or call customer service on 13 MORTGAGE.