Australians are heading into the festive season with a more cautious approach to spending, with almost half of them (46.3%) saying their discretionary spending has decreased compared to last year.

Despite this more cautious approach, Aussies are heading into the holiday season with generosity top of mind, with 46.3% naming gifts for family and friends as their biggest festive expense, according to a Money magazine holiday spending survey conducted between November 16 and December 7, 2025.  

Food and groceries follow closely at 41%, reflecting the importance of shared meals, celebrations and family traditions during this time of year. 

Even with spending carefully managed, financial pressure remains a reality for many Aussies, with 80.2% of respondents saying Christmas-related costs are stressful, and only 19.8% reporting no financial stress at all.  

“Despite cost pressures, Australians continue to prioritise connection, generosity and time with loved ones,” said Vanessa Walker, Managing Editor at Money.  

“It’s clear that even in a tighter year, people are making thoughtful choices to ensure the festive season feels special.”

Overspending remains common. More than half (51%) of respondents say they typically spend more than expected at Christmas. 

Black Friday and Cyber Monday continue to influence shopping behaviour, with nearly 60% of respondents purchasing at least some Christmas items during these major sales events. However, two in five (40%) say these sales do not impact their spending at all.  

When it comes to payment methods, credit cards remain the most popular choice at 44.1% of respondents, followed by debit cards at 39.6% of respondents.  

Travel is also a key financial priority beyond Christmas, with 55.5% of respondents saying they are currently saving for a holiday, far outweighing other savings goals.  

“This data shows the balancing act Australians are trying to manage, stretching their budgets for the festive season while still focusing on meaningful financial goals like travel,” said Walker.  

Walker noted that this time of year is a timely reminder of the value of informed financial choices.  

“With so many Australians feeling the strain of festive spending on top of the rising cost of living, it’s more important than ever to know where your money is going and where you can find better value.”  

To support readers in making smarter financial choices, Money has just released its Best of the Best Awards 2026, showcasing the top-performing financial products across banking, insurance, investments, credit cards, internet, mobile plans and more.   

These independent rankings highlight the best value options in the market, helping Australians reduce costs, improve returns and stretch their festive-season budgets further.  

The full list of winners is published in Money magazine's December issue.  

Money Festive Spending survey received 511 responses and was conducted between November 16 until December 7, 2025. The survey examined Australian’s Christmas and holiday-related spending behaviours, including gifting priorities, discretionary spending, budgeting habits and payment methods.