Using results from the DFA Household Surveys, we have been looking at household spending over the holiday period. We found that nearly 20% of households spent more than they were planning to over the break. Household behaviour varied by state. In WA more than 29% of households overspent, compared with 21% in NSW, and 8% in TAS. On the other hand, 31% of households in QLD and VIC spent less than anticipated, whilst only 11% from NT were below plan.
Looking at the data by age, we see that those households under 20 were most likely to spend more than planned (31.5%) whereas amongst households over 60, only 11% overspent.
Finally, looking at income ranges, we see that those on the lowest incomes were most likely to spend more than they planned to, whilst those in the middle income ranges were more likely to spend less than expected.
The survey also showed that those who overspent were most likely to use credit cards to cover the extra payments, and 17% of these did not know how they would cover the additional costs. On the other hand, those who spent as planned, or spent less than expected, were significantly less likely to use credit cards.
