Source: Radio New Zealand
The busy shopping period over the Christmas holidays could prove to be a stressful time for many households. 123rf
Households remain under pressure from high costs as they approach the busy shopping period, with many likely to turn to debt or additional income sources to pay for presents.
A nationwide survey by accounting software firm MYOB, showed 35 percent expected to feel financially better off in a year’s time, while 38 percent expected to be about the same, and 24 percent believed they would be worse off.
The survey polled just over 1000 adults across the country.
Looking back at the year, a third said their financial position was the same as it was this time last year, while a quarter felt better off, and 42 percent felt 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.”
The survey also asked about households’ shopping plans for the Christmas period.
More than half expected to spend about the same on gifts last year, and 15 percent set to spend more, while more than a quarter planned to cut back.
MYOB said to help cover costs, people were turning to side hustles or additional income sources, or turn to 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.
On average, people expected to spend $140 on gifts per person in the holiday season, compared to $163 the year before.
The survey also showed, on average, people expected to spend $415 on food and drink over the Christmas/New Year period, compared to $468 a year ago.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
