Households continue to face financial strain from high expenses as the busy shopping season nears. Many are expected to rely on debt or extra income sources to afford gifts.
A nationwide survey conducted by accounting software company MYOB, involving more than 1000 adult New Zealanders, revealed that 35% anticipated feeling financially better off in a year, 38% expected their situation to remain about the same, and 24% believed they would be worse off.
“New Zealanders have shown remarkable resilience in what has been another challenging year for local households, and it’s clear from the response coming through in our survey that the financial strain continues to be felt deeply,” MYOB chief customer officer Dean Chadwick said.
“However, we are starting to see a shift in confidence, likely helped by easing interest rates and a sense that the worst of some cost pressures may be behind us.”
In terms of households’ shopping plans for the Christmas period, more than half of people expected to spend about the same on gifts as last year, with 15% anticipating spending more, while over a quarter planned to reduce their spending.
According to MYOB, to manage rising costs, many people are turning to side hustles or additional income sources, while others are relying on credit or buy-now-pay-later options.
“For many Kiwi families, the pressure to spend up over the season can be particularly tough – especially when relying on credit – and taking on extra work to make Christmas possible can also put an extra load on already strained households,” Chadwick said.
People anticipated spending $140 per person on gifts during the holiday season, which is a decrease from $163 per person the previous year. $415 is also expected to be spent on food and drink over the Christmas and New Year period, down from $468 a year ago.