As Christmas budgets are squeezed, time to plan ahead and save

Woman is looking at a Christmas gift after planning ahead and saving up for the occasion.

Australians are cutting back on spending in order to meet the upcoming Christmas holiday costs. 

42% of Australians aren’t planning to buy as many gifts compared to previous years, research from global data and sights company, Pureprofile finds.

Aussies have also been cutting back on food and drinks over the Christmas, the same report showed.

As the high cost of living persists, it seems many are under financial pressure and that planning ahead on family budgets can help.

But where should you start?

Cutting costs and looking to save money

Two people are holding both ends of a ribbon as one of them cuts it to symbolise reducing costs and saving money

Utility bills, fuel costs, groceries … the list goes on. All of this adds up and with so many costs to keep track of, it can be difficult to know how much money you have left after deducting your necessary expenses. 

To get a more comprehensive overview of your finances, you might consider drawing up a budget spreadsheet. This can be a helpful way to gauge how much money you have left over after essentials and bills to spend on Christmas. 

No, a budget won’t solve the problem of ongoing costs but it can help make the picture clearer, helping you see areas that are costing more than they should. 

Another thing to think about is your savings account, the easiest way to put money away towards a goal.

Review your savings account

Mum and daughter are writing in a notebook as they think about reviewing their savings accounts for Christmas.

Parking your spare change into a savings account usually means that you’ll gain some interest over time. 

But the amount of interest you receive can vary from provider to provider, so it’s a good idea to check whether you’re still getting the best rate for your circumstances.

As of the time of writing, some savings providers are offering customers interest rates as high as 5.50%, according to Mozo’s database. In some cases, it’s also possible to receive bonus interest depending on the terms of your savings account and whether you meet certain requirements.

Requirements can vary but typically include making a minimum deposit each month, or not making withdrawals.

So in saying that, it’s worth thinking about your current savings account and whether you’re still happy with it, as a good offer might ease a bit of holiday stress down the line.

Compare savings accounts

Ready to kick off your savings journey? Check out some of the best savings accounts that our experts at Mozo have tracked this month, or compare some options below. 

Savings account comparison table - last updated 16 April 2024

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    High Interest Savings Account

    5.75% p.a. (for $0 to $250,001)

    4.40% p.a.(for $0 to $250,001)

    Yes up to $250,000

    Bonus rate for the first 4 months from account opening

    Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.

    Compare
    Details
  • Savings Account

    5.35% p.a. (for $0 to $250,000)

    4.75% p.a.(for $0 to $1,000,000)

    Yes up to $250,000

    Bonus variable rate is available for the first four months.

    Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.

    Compare
    Details
  • Reward Saver Account

    5.25% p.a. (for $0 to $1,000,000)

    0% p.a.(for $0 and over)

    Yes up to $250,000

    Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.

    Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.

    Compare
    Details
  • Mozo Expert Choice Badge
    AMP Saver Account

    5.40% p.a. (for $0 to $250,000)

    1.20% p.a.(for $0 to $5,000,000)

    Yes up to $250,000

    Enjoy a bonus rate when you deposit at least $1000 per month with the AMP Saver Account.

    No account fees. Unlimited transactions when linked to an AMP Bank transaction account. Easy online access to your money. Option to link your savings account to an everyday transaction account. 2024 Mozo Experts Choice Award winner.

    Compare
    Details

^See information about the Mozo Experts Choice Savings Account Awards

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