Almost half Australian shoppers break their Christmas budget, says Afterpay

Person holding out a present wrapped in Christmas paper.
Photo by Kira auf der Heide on Unsplash

While the holiday season can be a merry time, some also dread its arrival. With family tensions potentially already running high, the financial pressure of gift-giving can add to holiday stress.

A new report from Afterpay which surveyed more than 1,700 shoppers found buying gifts was the most stressful part of Christmas for 38% of Australians. 

Almost half (49%) of shoppers also admitted to overspending every holiday period and blowing their budget for the season.

So, how can you avoid a dramatic Christmas splurge?

Mozo has a handy gift-giving guide to help you save money this festive season, with tips for making presents, shopping secondhand and hitting savings goals while you spend. Afterpay’s report also found the majority of shoppers will be getting in early and buying presents during November and early December to spread out holiday costs, as well as jumping on online shopping sales during this period.

Younger generations in particular will be taking advantage of sales like Black Friday and Cyber Monday. More than half of those surveyed by Afterpay said they’d be nabbing discounted items this year, compared to only 4% of Baby Boomer shoppers. 

Shopping in-store vs online: What’s best this Christmas?

Despite Gen Z’s penchant for digital purchases, 44% of this younger cohort said they’d be relying on in-store assistance and inspiration for gift ideas. 

While a larger proportion of people now shop online, Afterpay forecasts in-store shopping will overtake online purchases by early-to-mid December. They expect shoppers will be looking to avoid delivery delays that have plagued 2021 due to high demand and supply chain disruptions.

And while one shopping method doesn’t necessarily beat the other in terms of price or quality, there are pros and cons on both sides. 

Shopping in the digital world generally provides broader options and more discount opportunities, but you can’t inspect items before you buy and could face fees to return them. Meanwhile, showing up to shopfronts means you can assess items personally and potentially haggle down prices. But Afterpay’s research shows shoppers are more easily influenced while shopping in-store, so you may be more inclined to make a rash purchase if stock runs low and you still need to tick off your Christmas shopping list.

Whatever way you choose to shop, make sure you’ve got a bank balance that can cover costs (plus a little extra for if you go over budget). And if bank account fees or withdrawal limits are impeding your Christmas shopping, it might be time to reassess your transaction account by comparing it against a few of the options listed below.

Compare bank accounts - rates updated daily

Search promoted bank accounts below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Everyday Options

    account fee
    Payment Options
    interest rate
    $0.00
    Apple Pay, Google Pay, PayID
    0.01% p.a.

    An easy, everyday banking account packed with flexible options to help you spend, budget and save better. Create up to 9 sub accounts.

    Go to site
    Details
  • placeholder
    Go Account

    account fee
    Payment Options
    interest rate
    $0.00
    Apple Pay, Google Pay, Samsung Pay
    0% p.a.

    Enjoy earning Virgin Money points on purchases (conditions apply). Bundled with the Virgin Money Boost Saver. No Account fees. Available as a joint account.

    Go to site
    Details
  • placeholder
    Glide Account

    account fee
    Payment Options
    interest rate
    $0.00
    Apple Pay, Google Pay, PayID, Samsung Pay, FitBit Pay, Garmin
    0% p.a.

    Unlimited free internet transactions. Super fast transfers & use Apple Pay, Google Pay and Samsung Pay. No account keeping fees or ATM fees.

    Go to site
    Details
  • placeholder
    Orange Everyday

    account fee
    Payment Options
    interest rate
    $0.00
    Apple Pay, Google Pay, PayID
    0% p.a.

    Rebates on ATM fees anywhere in Oz. No ING international transaction fees. Zero monthly fees. Winner of the Mozo Experts Choice Awards 2020 for Exceptional Everyday Account.^

    Go to site
    Details
  • placeholder
    Classic Banking Account

    with Standard Visa Debit Card

    account fee
    Payment Options
    interest rate
    $0.00
    Apple Pay, Google Pay, PayID, Samsung Pay
    0.01% p.a.

    No monthly account fees ever, with no conditions. Free use at over 7,000 ATMs around Australia. No overdrawn fees if you happen to go over your account balance. Open an account in less than 7 minutes.

    Go to site
    Details

^See information about the Mozo Experts Choice Bank Account Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.