It's time to gift quality over quantity at Christmas

Haven't finished Christmas shopping?

In the festive season, consumers are pitted against the marketing machines of some of our biggest corporations, all trying to get us to part with our cash.

Here are five ways to land a bargain without ending up in financial hot water.

1. Buy a gift that will be valued

Christmas may be the season of giving, but when someone says, 'Oh, you shouldn't have', chances are they mean it.

According to the Australia Institute, last year's festive season saw more than six million Australians receive presents they didn't want and won't use. That's a whopping $921 million spent on gifts that will likely end up in landfill.

"Most of us love buying gifts for our loved ones, but 275,000 tonnes of them are set to go unused," says Nina Gbor, director of the waste and circular economy program at the Australia Institute.

She adds that nearly half of us would rather not receive presents at all, suggesting it's time to shake up Christmas spending habits.

"Gifting experiences, homemade presents, gift cards or donations in someone's name are great alternatives to presents that would otherwise gather dust or go to waste," says Gbor.

"Buying fewer presents and focusing on quality over quantity doesn't just help save the environment, it also spares our wallets during the cost-of-living crisis."

2. Use tech to track down the best price

Data from Belgium-based ProxyScrape shows 78% of online shoppers rely on comparison tools to spot the best deals.

If you're an Amazon fan, CamelCamelCamel is an Amazon price tracker that shows historical data on the best time to buy.

Honey is a browser extension that tracks down money-saving discount codes and cashback options.

There is also a wealth of apps, such as Price.com, that let you compare prices at major retailers by scanning a barcode or taking a photo of an item.

3. Avoid the 'spaving' trap

Many of us find it hard to resist the lure of a bargain and sales pitches such as 'Save with this exclusive discount code!' or 'Spend over $100, get free shipping!' can tug at our hip pockets.

But 'spaving' - spending money to save money - won't always leave you better off financially.

The trick is to work out whether you're looking at a good deal or a dud.

This can be challenging because while our eyes may light up at a saving of 50%, it's really our brain that is lighting up. Finding a bargain activates the reward centres in our brain, triggering a release of the feelgood hormone dopamine.

Think of it as a 'shopper's high'.

Before you set out on your gift-buying expedition, it's worth spending some time making a list of family and friends you plan to buy for - and set a price limit per person.

Asking recipients if there is an item they need or want (angling for suggestions that fit your budget) means you will be less likely to waste your hard-earned money on an unwanted gift. Once you start shopping, make sure you stick to the list.

4. Think twice before giving clothing and gift cards 

Clothing and footwear top the items we plan to gift this Christmas, but they don't always hit the mark.

Clothing, footwear and accessories are the most-returned gifts, according to Monash University research, and, not surprisingly, half of Australians (50%) say they'd like the purchase receipt to accompany a gift in case they need to return an item.

Discreetly tucking proof of purchase into a present means your gift won't end up in the local op shop, listed for sale on Gumtree or, worse, end its days in the garbage bin.

Gift cards are another popular choice, and they're an easy option if you don't know what someone really wants or needs. The catch is that one in four go unused.

Finder's Sarah Megginson says Australians have an average of $198 in gift cards sitting untouched, worth $1.4 billion nationwide.

Almost one in five gift cards expires before the recipient gets around to using it, while 5% are lost. At the thin end of the wedge, 1% of cards have been unable to be redeemed because the retailer went out of business.

Megginson notes that gift cards purchased after November 2019 must come with a minimum three-year expiry period.

5. Get paid to shop

What's not to love about receiving a few bucks back when you make a purchase? Cashrewards and ShopBack are two platforms that offer exactly this.

These platforms receive a commission from retailers when you make a purchase. Part of this is then returned to shoppers as a cash payment, usually worth around 5% of the value of purchases.

You will need to sign up and shop via the platforms to score a cash payment. So, be sure to hunt around to see if a cheaper price is available elsewhere.

Get stories like this in our newsletters.