How to avoid paying the "festive tax" this holiday season

With the festive season just around the corner, the kids are on school holidays and we’re all looking for ways to make the most of our break without breaking the bank. However, this period also means retailers jacking up prices and taking advantage of the festive cheer.

But by being smart, you can avoid paying too much and actually save money during the holiday season. Read on for our tips on how you can avoid paying the “festive tax” this year.

Avoid public holiday surcharges

Particularly on public holidays around Christmas and New Year, service industries such as restaurants and taxi providers will enforce surcharges. Typically, these fees will range from 10-20%. If you want to use these services for your holiday celebrations, consider celebrating a day or two earlier to avoid the public holiday surcharges.

Don’t pay for gift cards with credit

Gift cards are a quick and easy gift to give to your loved ones, however, some retailers will charge you a cash advance fee if you use a credit card to pay for one. Often, you won’t be warned of this extra cost. To be safe, use a debit card or cash to pay.

Check for hidden delivery conditions

There are often different conditions for delivery when shopping online during the festive season. Sometimes there are extra costs for shipping, or delays if you select free shipping, forcing you to pay more for express shipping to get your items in time.

You can avoid this by planning ahead and buying your gifts early. You could also plan to buy all of your items from one retailer or ask a friend to split the delivery costs with you if they’re also buying from the same site.

Make a shopping list (and check it twice)

If you want to buy gifts for your loved ones, make up a shopping list first. This will not only ensure that you don’t forget someone, it will also save you from paying the “festive tax”. Knowing what gifts you need to buy early on means you can hunt for bargains, save on express shipping costs and avoid any retailers that want to rip off unaware consumers.

Make sure to draw up a budget as well to ensure that you’re spending within your means.

Choose inexpensive traditions

Traditions are definitely important for any holiday celebration but they don’t need to be expensive. For instance, activities such as touring your neighbourhood’s Christmas lights or watching a festive movie together don’t have to cost you a cent.

You could also find ways to make your traditions less expensive. Check discount websites such as Groupon to find great deals on festive activities.

Be savvy when travelling during the festive season

One of the areas where the “festive tax” affects people the most is travel. Research from finder.com.au has found that Aussie travellers pay 103% more when travelling during peak seasons compared to off-peak seasons.

Both international and domestic travel destinations become more expensive during peak holiday times. For instance, Aussies pay on average 72% more to travel to Phuket and 121% more to travel to the Gold Coast during Christmas. This includes hotel, flight and car rental costs.

If you’re looking to take a festive trip this year, it may be a good idea to plan it for a different time of year. However, if a holiday during this time is a must, make sure you do your research and compare prices to help you save as much as possible.

Making the most of the holiday season should also involve being a conscious consumer. Avoiding the “festive tax” will allow you to enjoy the time with your loved ones without the added financial stress.