Yahoo Finance Aussie mum 'cancels Christmas' in heartbreaking cost-of-living twist: 'Tough'
Some people are opting out of the festive day altogether just to keep their heads above water.
Christmas is meant to be a time when family comes together to eat delicious food, open presents and make lifetime memories. However, the looming festive day is causing some Aussies stress and anxiety over how they will afford it.
The cost-of-living crisis has seen some people forgo daily meals just to keep a roof over their heads and Christmas is an expense that seems like only the rich can truly enjoy. One Aussie named Susan* told Yahoo Finance they will probably have to cancel Christmas this year to keep her family's head above water.
"Now is a tough time for the family, we are losing savings and we are not participating in life as it is," she said.
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Susan reckons her family of four has spent around $100,000 this year alone on rent, the car, groceries and other expenses.
She and her partner earn $70,000 each and said they've cut back on luxuries like eating out, going to the movies and using ride-share services like Uber to save a bit of money.
Have you been forced to cancel Christmas or another major event? Email stew.perrie@yahooinc.com
Even with those sacrifices, she said Christmas will still have to be cancelled and it will just be a basic meal for the four of them on December 25.
While the big day might seem ages away, it won't be long before stores across the country are bombarding us with Christmas music.
'It's too much': Aussies weigh in on the financial burden of Xmas
Susan asked on social media whether anyone else was thinking of doing the same for their family and was overwhelmed with the response.
"Not doing Christmas was the best thing I ever did for my mental health. Family is too spread out for it to be worth getting together at an insanely busy time of year travel-wise. Factor in costs and even on a very healthy income it's just too expensive and stressful," wrote one person.
"It's coming to a point that it's not the actual gifts, the kids will cause a tantrum because they don't have 100 presents to open. It's not about Christmas anymore, it's how entitled can we make these kids feel. They ask for stuff they don't even want," said another.
"Haven’t done Christmas as a family for the last three years and it’s been brilliant," added a third.
"It’s just basically a lunch nowadays," commented another.
Susan said she felt "guilty" about having to cancel Christmas for her family this year, but seeing other peoples' reactions her feel better about the situation.
When asked if she feels like there is a lot of pressure surrounding December 25, the parent told Yahoo Finance: "A little bit but the pressure of my family in tents far outweighs the pressure of no Christmas."
How to avoid the financial pinch in December
Finder's personal finance expert Sarah Megginson said the looming financial burden of Christmas can strike fear in a lot of Aussies at a time when wallets are being pushed to the brink.
When you add up buying and wrapping all the presents, decorating the tree, buying all the food for lunch or dinner, travelling from one house to another and all the other associated costs, the big day can cost people hundreds or even thousands of dollars.
But with interest rates being on hold for nearly a year at 4.35 per cent, inflation driving up the cost of groceries, and services like insurance skyrocketing as well, it's hard for many to justify splurging on others for Christmas.
Megginson urged people to work out what's truly affordable rather than overspend just for one day.
"Christmas might look a little bit different to how it's looked for you in the past, but I think the best thing to do again is to really focus on you and your family and what your most important goals are, and it's different for everyone," she told Yahoo Finance.
She gave the following tips to keep the day low budget:
If you have to travel far to see family, consider holding Christmas on another day a few weeks after December 25 when flights and petrol are much cheaper
Dial back the presents and maybe only give to one family member or just the kids instead of everyone
If you want to give to everyone, start shopping now
Scale the Christmas meal to only the essentials rather than going over the top
"A lot of people don't even have a Christmas budget, and I think it's a really good idea to do that," she added.
"It can be a little bit surprising or confronting when you add it all up and realise how much you spend, but it's really good idea to plot that all out and try to do it soon, so that you understand what your expenses are going to be, and you can look for ways to trim it and save a little bit of money."
Megginson suggested buying a $10, $20 or $30 gift card from any of the big retailers now so that your spending can be spread out over several weeks rather than in just a few days.
"Look at what you want Christmas day to be and that Christmas period to be, and start to plan really intentionally now what it's going to look like," she said.
Financial stress at its highest level in a decade
New analysis from AMP has revealed that just one in three working Aussies felt financially secure, down from half during the pandemic.
There has been a sharp rise in stress for workers earning between $100,000 and $150,000, with nearly a quarter of Aussies in this bracket reporting they were “severely” or “moderately” financially stressed. This was up 150 per cent in the space of two years and nearly triple from 2020.
AMP Bank group executive Sean O’Malley said Aussies were not able to save as much as previously and were cutting back their spending on essential expenses like groceries, along with discretionary spend like streaming services and holidays to stay afloat.
“It’s clear more Australians aren’t feeling secure with their finances, not surprising given cost-of-living pressures and housing unaffordability challenges,” O’Malley said.
Three in five Aussies spent less on groceries this year, two in five went without a holiday and one in three spent less time on their hobbies and interests.
A third also cancelled streaming subscriptions and gym memberships to help cope with financial pressures.
*Name changed at request of interviewee
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