Set a budget to keep control of Christmas costs
The rising cost of living is putting more pressure on Queensland household budgets in the leadup to Christmas.
RACQ Group Executive Banking Michelle Winzer said the holiday season should be a happy time with family and friends and encouraged Queenslanders to think about their finances.
“It’s been a tough year for many people with the cost of food, fuel, and electricity increasing substantially,” Ms Winzer said.
“We know this is the time of year when we get swept up in the spirit of giving and start spending beyond our means.
“Gifts, decorations, transport, accommodation, and food can add up quickly, and you end up spending more than you can afford.”
Ms Winzer recommended families set a holiday season budget to help control costs.
“Look at ways you can reduce costs like setting a price limit on gifts, doing Secret Santa or each family member bringing a dish to Christmas lunch,” she said.
“There are also plenty of sales coming up which are a great opportunity to buy the items on your list early.”
Ms Winzer said it was also important to be mindful about the use of credit cards or buy now pay later services as this debt may cause future stress in the new year.
“You may also want to check your finances and find quick ways to save money such as reviewing forgotten subscriptions or foregoing discretionary items like food delivery services.”
Ms Winzer said help was available for RACQ members who were experiencing financial hardship.
“We urge anyone who is feeling overwhelmed by their finances not to suffer in silence and to reach out,” Ms Winzer said
“The earlier we’re contacted, the sooner we can find ways to help whether that be fast-tracking financial hardship requests or providing assistance and flexibility with payment options.”
Christmas budget tips
- Make lists of what you need to buy and the food you need to prepare during the festive season. Having lists will help you plan your spending and keep you on track.
- Keeping track of your festive spending is the best way to avoid going over your budget. Use an app, write it down or keep track through online banking.
- Avoid putting purchases on credit cards.
- Shop around for the best prices for items on your list. Some stores match or beat competitors' deals, so take all the details with you when you go into the store.
- Start planning now for next Christmas.
The information in this article has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in the document is general advice and does not take into account any person's particular investment objectives, financial situation or needs. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives, financial situations and needs.
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