Are you aware of your gift giving tendencies? How do you compare to the average Australian? Do you keep track of your gift spending, plan for it, even budget for it? As part of Financial Planning week, the Financial Planning Association commissioned a Gift Giving survey to analyse Australia’s habits with some interesting results.
Australia is a generous nation, spending almost $20 billion on gifts per year. It is no wonder, gift giving is thought to have psychological benefits for the giver including feelings of trust and social connection and lower stress and blood pressure.
Do we realise how much we spend on gifts though? The survey has broken down the average Australian adult spends the following on gifts for loved ones each year:
– $437 for our spouse or partner,
– $361 per child,
– $201 per parent,
– $115 for our pet.
That is a hefty bill each year for a family of four, with four Grandparents and a dog = $2,515!
Another slightly concerning statistic is the proportion of Australians who account for their gift spending in their household budget. I know from my discussions with clients, their recollection of gift spending often comes in well below the averages above, which is represented by the survey indicating 73% of Australians don’t have a budget allocation for the gifts they buy.
So we know gift giving makes us feel good, but poor planning can mean we resort to debt to fund our giving, which brings along the possibility of regret.
A trend for those that do plan their gift giving is to buy multiple gifts of a nonspecific nature, in bulk. Bulk buying has the opportunity to save both time and money when gift giving – 44% of families with young kids employ this strategy.
Another strong trend is collaborating with friends, colleagues or family to buy a gift together, nearly 73% report participating in group gift-giving with younger generations finding this method particularly popular.
Finally, there is an emerging trend for Australians to think about the longevity and legacy of their gifts, also being mindful of the usefulness of a gift in the short term. 81% thinking about how long a gift will last.
Across those surveyed, four distinct gift-giver personalities emerged:
Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Please seek personal advice prior to acting on this information. The information in this document reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. Opinions constitute our judgement at the time of issue and are subject to change. Neither, the Licensee or any of the National Australia group of companies, nor their employees or directors give any warranty of accuracy, nor accept any responsibility for errors or omissions in this document. Before making a decision to acquire a financial product, you should obtain and read the Product Disclosure Statement (PDS) relating to that product. Past performance is not a reliable guide to future returns. The information in this document reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way.