- Westpac NZ is urging New Zealanders to prepare a festive season spending plan as new research indicates many households continue to feel the strain of cost-of-living pressures.
A survey of nearly 1,100 Westpac customers found that 73% of respondents remain either extremely or moderately concerned about the cost of living, a level similar to that seen in 2024. The research also showed that 42% expect to spend less on the holiday season than they did last year, while only 15% anticipate spending more.
Helen Ryder, Westpac NZ General Manager Consumer Banking & Wealth, says that planning ahead can make a meaningful difference as the holidays approach.
“While it’s encouraging to see from the survey that 27% of people have followed a budget to plan for the holiday season, 40% said they hadn’t yet done anything in particular to prepare themselves financially. Taking some action now to plan your spending can help avoid a cash crunch or debt hangover down the track.”
The survey also revealed that financial pressures have influenced people’s spending habits throughout the year. Seventy-four percent of participants said cost-of-living pressures had led them to cut back, and of those, 90% reported reducing spending on non-essentials such as dining out, shopping, and entertainment.
These trends appear set to continue into the festive period. Holidays are one of the key areas where respondents expect to scale back: 39% of holiday travellers—those who travelled last year or plan to travel this year—said they would trim their travel budget, while 46% of people using holiday accommodation reported they planned to spend less this year.
“This year has been tough for many New Zealanders, with prices continuing to creep higher despite inflation coming off its highs. Our survey shows people have been responding by cutting back on spending and some New Zealanders may be choosing to stay closer to home for the holiday season this year,” Ms Ryder says.
“We hope people will get a chance to relax with their families over the coming weeks. 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.”
Westpac has some key tips on ways to keep spending on gifts and other aspects of the festive season in check, including:
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.
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