A survey of nearly 1100 Westpac customers indicates nearly three-quarters (73 percent) were either extremely or moderately concerned about the cost of living, which was little changed from last year.
“This year has been tough for many New Zealanders, with prices continuing to creep higher despite inflation coming off its highs,” Westpac NZ general manager of consumer banking & wealth Helen Ryder said.
Only 15 percent of those surveyed expected to spend more than last year, while 42 percent expected to spend less.
Nine-out-ten of those (90 percent) who planned to spend less were cutting back on non-essentials like dining-out, shopping and entertainment.
The survey indicates 39 percent of holiday travellers, who travelled last year or planned to travel this year, were also cutting back, while 46 percent of those who used holiday accommodation were also planning to spend less.
“Taking some action now to plan your spending can help avoid a cash crunch or debt hangover down the track,” Ryder said.
However, just 27 percent had a holiday budget, while 40 percent had not done any financial planning.
“To reduce financial stress, we recommend sitting down as a family and putting some time into planning out your summer spending and then sticking to your plan,” Ryder said.
Tips for holiday spending
– Use a budget calculator to know your limit and then stick to it.
– Budget for the essentials first, like food and travel, before allocating leftover spending money on items like gifts and decorations.
– Talk to friends and family before going gift shopping to discuss whether you are doing presents, and if so, whether you should set a price limit.
– Make a gift list and check it twice to avoid impulse buys.
– Think about grocery shopping earlier rather than later as often items get more expensive closer to Christmas.
– Before paying with credit, see if you can reduce costs or use your savings, to reduce the amount of debt that needs to be paid back in the new year.
