Survey reveals financial priorities in the face of economic challenges
A majority of New Zealanders, specifically 62.6%, are prioritising mortgage or rent payments along with utility bills over all other financial commitments in the first half of 2025, according to the latest findings from Kogan Mobile’s survey of more than 1,200 customers.
This shift underscores the ongoing impact of the cost-of-living crisis on household budgets, forcing many to focus on essential expenses.
Challenges in saving for homeownership
Despite the strong focus on keeping up with housing costs, the aspiration to save for a house purchase is notably low, with only 3.7% of respondents considering it their top financial priority this year.
This is particularly striking given that Millennials, who typically represent a significant portion of first-home buyers, make up nearly half of the survey’s respondents.
The data suggests that immediate financial pressures are overshadowing the ability to save for future homeownership, yet a recent LJ Hooker survey reveals that 81% of Kiwis, especially younger generations, still highly value homeownership.
Adjusting spending in response to economic pressure
Ron Gelberg (pictured above), chief partnerships officer at Kogan Mobile NZ, commented on the survey results.
“As Kiwis continue to feel increasing financial pressure, our survey shows us what many have likely already felt, that saving money is no longer geared towards big milestones or travel,” Gelberg said. “The reality is far less glamorous, with hard-earned savings being spent on basic necessities, like paying the bills.”
This practical approach is reflected in the broader spending habits observed among New Zealanders, who are increasingly using their savings for essential monthly bills and debt repayment.
Proactive financial adjustments
In addition to prioritising essential bills, New Zealanders are adopting various strategies to manage their finances better amid rising costs.
For instance, a significant number of respondents are turning to budgeting tools and experts to optimise their spending, with a notable focus on reducing discretionary expenses such as dining out.
Economic impact across demographics
The survey also highlighted how different age groups are coping with the economic pressures.
Younger generations, including Gen Z and Millennials, report feeling the impact of cost increases more significantly than older generations, indicating a heightened sensitivity to economic fluctuations among younger adults.
