This amid holiday spending concerns
Westpac NZ is urging New Zealanders to create a budget for 2024, as research revealed that over 25% of Kiwis anticipate feeling the financial strain of holiday spending.
A survey of 1,110 Westpac customers indicated that 27% believe holiday expenses will definitely or probably cause financial stress in the new year, with 24% expecting greater stress in early 2024 than in the same period in 2023.
Twenty per cent of customers expect that repaying holiday debt will constitute a significant additional cost in January and February.
Despite concerns, 45% plan to budget this year compared to 33% last year. Sixty-eight per cent of respondents in the 25-34 age group were inclined to plan their finances in the new year, a percentage that decreases in older age groups, the Westpac NZ survey found.
Helen Ryder (pictured above), Westpac NZ's acting general manager of consumer banking and wealth, suggested that now is an ideal time to develop a spending plan to navigate the upcoming year.
“We know Kiwi households are feeling the rising cost of living in different ways and the key to managing your money effectively is keeping your spending within your means,” Ryder said in a media release. “The start of a new year is a great time to do a financial reset to work out what your spending and saving priorities are for the year.”
She recommended using available tools like budget calculators and Westpac’s CashNav to simplify the budgeting process.
“Even if you’ve used a budget in the past, it’s a great time to have another look, as your incomings and outgoings may well have changed,” Ryder said.
“By getting an up-to-date idea of your regular costs as well as any big expenses coming up and setting aside money each week, you can create greater peace of mind that you can cover those costs when they roll around.”
The survey revealed that nearly half of the respondents intended to save whatever they could from each payday.
Ryder advised creating realistic savings goals, setting up automatic payments or using tools like Westpac Salary Splitter for income allocation, and establishing an emergency fund.
Westpac NZ provides budgeting tips and information on Managing Your Money workshops on its website to support Kiwis in enhancing their financial capabilities.
Ryder also urged those concerned about financial challenges this year to seek guidance and support from their bank.
“We encourage everyone to take a deep dive into their finances over the next few weeks,” Ryder said. “Why not plan to set aside a summer evening to sit down with the whanau to create an accurate budget and set some savings goals for 2024?”
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