It has been long understood Christmas is a time of year that can provoke anxiety, with research showing it to be one of life’s most stressful events, alongside divorce, moving house, and changing jobs.
And, in an economic environment shaped by sticky inflation and much discussion about rising costs, many Australians may be facing the festive season with trepidation and little cheer, despite the combined efforts of Mariah Carey, Father Christmas, and Rudolph.
However, according to consumer behaviour expert Dr Paul Harrison, there are several approaches to Christmas that can ease the stress of the period.
Dr Harrison – Unit Chair of Consumer Behaviour at the Department of Marketing attached to Deakin University Business School – said that to begin, it was important to understand the complexity of the ‘cost of living crisis.’
“When we talk about the cost of living, it’s not a simple issue, but a complex web of things,” he said.
“If you look at groceries for example, on average their costs haven’t gone up, but the cost of other basics like electricity has.
“And there are also gaps between low- and high-income households: Some people can continue to afford luxuries, while others are worse off, but this is important because we often compare ourselves to others.”
These comparisons – exacerbated by social media – tended to boost people’s sense that they were doing it tough; this was not helped by regular media discussion about the cost-of-living crisis either, he added.
In consideration of this, Dr Harrison said consumers needed to check their expectations, adding, “We have to adjust our understanding of what we can afford.”
In terms of financial tips to take with you into Christmas, the following five tips should help provide a framework to ease the financial burden.
1) Approach what you’re doing for Christmas with a critical eye, and focus on people, rather than expense
“The information we receive from advertising and the media creates expectations for how Christmas should be,” Dr Harrison advised.
“I think it’s about revising your thoughts on why you’re doing what you’re doing. Go back to what you want to do on Christmas, and prioritise your relationships and spending time with people.”
2) Don’t feel under pressure to spend a lot of money catering to everyone
“Often people feel the need to spend a lot of money catering to others because they have a need to be loved. But it’s important to understand ‘what I can manage’,” he added.
3) Avoid ‘buy now, pay later’ apps like Afterpay or Zip
“I would advise people to not get caught up in that if they’re struggling because it means taking on expenses that you can’t carry,” he said.
“The thing about taking on credit – and these platforms are credit by any other means – is that you’re pushing off the expense into the future, but the debt is always there. You’re just discounting the future pain.”
4) Be wary of how consumption by other people is presented
“Social media means we have much more access to other people’s lives, which often causes us to compare ourselves to them,” Dr Harrison said.
“What this does is set up expectations of what life is supposed to be like, and the market is very good at exploiting that.”
5) Keep in mind while buying treats for yourself can provide a short-term emotional high, it isn’t always practical
“Part of our revised approach to spending should entail recognising that you don’t have to treat yourself with everything,” he added.
“Often buying things can feel like a reward: If things are not going so well, we’ll buy a new doona (for example), and it delivers a spike of dopamine.”
With all this in mind, may the Christmas period be one of joy and peace for all.