Consumers are reducing spending on holiday gifts and vacations due to rising cost-of-living pressures, a Westpac survey has revealed.
Westpac’s survey of 1,100 customers has shown that 73% were either extremely or moderately worried about the cost of living, with little change from the previous 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 and wealth Helen Ryder said.
15% of respondents anticipated spending more than last year, whereas 42% planned to spend less.
90% of those who intended to spend less were reducing expenses on non-essentials such as dining out, shopping and entertainment.
39% of holiday travellers, who either travelled last year or planned to travel this year, were also reducing their spending, while 46% of those who used holiday accommodation were planning to cut back as well.
27% of the respondents had a holiday budget, while 40% had not engaged in 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.