GRINCHFLATION: ONE IN FOUR AUSSIES ARE BUYING FEWER PRESENTS THIS CHRISTMAS
If you are planning to buy fewer presents this Christmas, you are in very good company.
New research from comparison site Finder, released on November 9, shows that one in four Australians intend to cut back on gifts this year.
Finder has nicknamed the trend "Grinchflation", and it reflects just how much pressure household budgets are under heading into the festive season.
Why so many of us are buying fewer presents
According to Finder's Shopping Report 2026, 61 per cent of Australians, or about 13.3 million people, plan to take at least one step to manage the cost of holiday shopping.
The survey of 1,006 people was conducted in October.
Buying fewer gifts was the most popular choice, at 26 per cent.
Another 22 per cent plan to set a strict budget or even a spreadsheet, while 19 per cent will cut back on groceries or other essentials.
Some 17 per cent will agree on a spending cap with family or friends, and 15 per cent are taking on extra work to cover the costs.
A further 13 per cent plan to sell unwanted items online, and one in ten will make gifts by hand.
The worrying part
Not every strategy is a healthy one.
The research found 13 per cent of people plan to use buy now, pay later or a credit card they would not normally use to get through Christmas.
Finder's personal finance expert Sarah Megginson said the best gift you can give yourself is "a January you can afford".
She told Retail World that the presents might be unwrapped on December 25, but the repayments can hang around well into the new year.
Her advice is to cover your regular bills first, then work out what you can comfortably spend on gifts and celebrations.
Cutting back without feeling mean
Many of us feel guilty about spending less, especially when there are children or a big extended family involved.
"Cutting back doesn't mean you care any less," Megginson said.
The good news is that there are plenty of ways to keep Christmas special for less.
Suggest a Kris Kringle or Secret Santa for the adults in your family, so everyone buys one thoughtful gift rather than a pile of small ones.
Agree on a dollar limit early, before anyone has started shopping, so nobody feels awkward later.
Consider gifts of time, such as a picnic, a movie night, a home-cooked meal or an offer to babysit.
Homemade presents like biscuits, jams, candles or framed family photos are often treasured far more than something bought in a hurry.
For children, many families follow a simple rule of something they want, something they need, something to wear and something to read.
Make your budget work harder
Write a list of everyone you are buying for, with a set amount next to each name, and stick to it.
Keep receipts and track what you spend as you go, perhaps in a simple note on your phone.
Compare prices before you buy, and be wary of sales that tempt you into spending money you had not planned to.
If you do use buy now, pay later, make sure you know the repayment dates and that the instalments fit your budget.
The government's Moneysmart website has free budgeting tools and tips if you would like a little help.
If you are struggling with debt, the free National Debt Helpline on 1800 007 007 can talk you through your options.
The true spirit of the season
At the end of the day, most of us remember who we spent Christmas with, not what we unwrapped.
Buying fewer presents could even be the push your family needs to start new traditions that cost very little.
A backyard cricket match, a beach swim or a long lunch together may be the most precious gifts of all.
