As part of Savvy’s ongoing research into the personal finance habits of Australians, we survey Australian adults about their plans to pay off large Christmas expenses and how they’ll keep on top of finances in 2023.
- 64% of Australians will use existing savings to pay off Christmas expenses; only 14% will use the credit card
- 53% of Australians say they’ll create a budget to keep on top of finances in 2023 – comprising 62% of women
- 24% of Australians intend to save more money than last year
- 20% of Australian women will set up an automated savings plan during 2023
A representative survey of 1,000 Australians about how they’ll avoid financial stress in 2023 has shown that a little over a half of those polled (53%) say they’ll create a budget to keep their finances in order.
62% of women said they would create a budget; while the 25-34 and 35-44-year-old demographics said they would be the most likely to create a budget (65% and 62% respectively.)
12% of Australians (9% of men and 14% of women) said they’d use a budgeting app; 7% said they would consult a financial planner or adviser.
16% of Australians – 12% of men and 20% of women – said they would set up an automated savings plan, such as direct debit to a savings account or managed fund.
Interestingly, a shade under a quarter (24%) of Australians said they’d simply “earn more money than last year.” For the most optimistic demographic, 18-24s (36%) this may prove a winning strategy as the older part of the cohort enter more senior positions.
12% would pay more into a mortgage offset account; 16% would make investments (12% into shares, 4% into cryptocurrency.)
Overcoming Christmas Financial Hangover
Many people in Australia spent up big over Christmas, with the Australian Retailers’ Association showing pre-Christmas sales in excess of $74.5 billion, up 8.6% over last year.
As for how Australians are planning to pay off their Christmas expenses, the overwhelming majority (64%) said they would be using their savings.
25% said they would use income from their paycheque, while only 14% said they’d rely on the credit card.
How are you mainly planning to pay off your Christmas expenses and avoid financial stress in the new year?
No Data Found
(Respondents choose top 3)
By age group
|Preference by Age-group||18 - 24 years||25 - 34 years||35 - 44 years||45 - 54 years||55 - 64 years||65+|
|Use existing savings||68%||70%||66%||56%||60%||64%|
|Income from paycheque||38%||32%||33%||26%||17%||9%|
|Use credit card||12%||13%||13%||16%||16%||13%|
|Borrow money from friends / family||4%||1%||-||3%||2%||-|
|Take out a loan / consolidate debts||-||2%||2%||-||1%||-|
|Not relevant to me||11%||12%||9%||14%||18%||22%|
(Respondents choose top 3)