Thrifty Christmas: 4 In 5 Kiwis Are Tightening Their Belts

News highlights:

• The average person is expected to spend $561 this holiday season
• The cost of a traditional Christmas dinner has increased by 10%
• Ways to save money this holiday season

As Kiwis gear up for a big holiday season, many are getting thrifty with their finances, according to new research by financial comparison site Finder.

A new nationally representative survey of 1,507 respondents found New Zealanders are set to shell out $1.8 billion on Christmas this year, with the average person expected to spend $561.

Gifts top the list of festive expenses, with Kiwis expected to fork out $253 on presents – down from $352 in 2020.

New Zealanders are hoping to spend less this year – the research shows four in five (80%) are looking for ways to curb costs this Christmas.

Actions Kiwis are taking to save money include setting aside money in advance (40%), shopping for presents early (39%), and implementing a gift limit with loved ones (21%).

Angus Kidman, Finder’s editor-at-large in New Zealand, said many consumers are planning to spend less this Christmas.

“2022 has been tough, and holiday season spending is down compared to previous years.

“Ongoing economic uncertainty and the emerging Omicron has made everyone more aware of their spending habits. Emergency savings have become a bigger priority."

Millennials will be the biggest spenders this Christmas, forking out $631 on average, while Baby Boomers ($438) will spend the least.

“From presents to Christmas parties, celebrating the festive months can be expensive – but you can limit your spending without curbing all the fun.

“Kiwis have spent months away from their loved ones and will be hoping to enjoy an extra-special Christmas this year – just without the holiday debt hangover,” Kidman said.

This comes as new Finder analysis shows the cost of a traditional Christmas dinner has increased by 10% over the past 12 months.

Using data from Stats NZ's October Food Price Index 2021, Finder calculated the cost of ingredients for a no-frills Christmas meal for 4 people, including salad, meat, vegetables, dessert and non-alcoholic drinks.

The analysis found it would cost approximately $44.82 (excluding alcohol) to prepare a basic festive meal – an increase of 10% when compared to the cost of the same meal in 2020, and an increase of 20% when compared to 2011.

Kidman encouraged New Zealanders to go easy on their bank accounts this holiday season.

“Buying a gift for every family member could set you back hundreds or even thousands of dollars. Instead, try a Secret Santa and only shop for one person.

“Setting a gift limit can also minimise how much you spend on each present.

“The New Year can be a jam-packed month full of parties and celebrations. You don’t need to say yes to everything, especially if it’s going to put a dent in your wallet.

“Instead, pick and choose just a few events – this will also save you from social burnout.”

The research found Kiwis (80%) are more likely to be slashing their holiday spending than Australians (67%).

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