Two out of five Kiwis will spend less on Christmas festivities than they did last year, a Westpac customer survey has found.
73% of the nearly 1,100 Westpac customers surveyed expressed extreme or moderate concern about the cost of living. 74% of respondents indicated that cost-of-living pressures had prompted them to cut back.
42% of survey respondents said they expected to spend less than last year during the holiday season, compared with just 15% who expected to spend more.
“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,” Helen Ryder, Westpac NZ General Manager Consumer Banking & Wealth, says.
“Taking some action now to plan your spending can help avoid a cash crunch or debt hangover down the track.
“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.”
A cheap and cheerful Christmas
A memorable Christmas need not be an expensive one. Instead, focusing on connection, shared time, and that generous, festive spirit is what truly matters, not the price tag.
For many, that means scaling back without sacrificing the experience. Instead of multiple presents, choosing one thoughtful gift per person can keep costs down while still feeling meaningful.
Simple additions, such as handwritten notes, printed photos, or homemade treats, can elevate low-cost gifts and make them more personal.
The same approach applies to Christmas Day meals. Opting for a single hero dish rather than an elaborate spread can significantly reduce costs.
Hosting duties can also be shared by inviting guests to contribute a favourite side or dessert, creating a communal table without it feeling like a potluck.
Financial advisers say buying non-perishables early, choosing items on special and keeping desserts homemade are easy ways to cut costs without dulling the festive spirit.
Music, decorations that people already own, rituals and traditions can transform the day and tend to be what people remember most anyway.
A “cheap and cheerful” Christmas doesn’t mean going without; it means celebrating with intention and avoiding the debt hangover that often follows.
