Introduction
The Budgeting for the Festive Season poll was conducted in November 2008.
The poll showed that many people were planning to cut back on spending over Christmas and New Year due to the current economic uncertainty – and Couch members offered useful tips on how to save money.
Results summary
Thanks to the 679 Couch members who completed this poll.
Most said they worked out budgets for the festive season at least sometimes, although more than a third rarely or never did. Most admitted feeling a degree of stress, and pressure to spend up large – but mostly not at the extreme end of the scale.
Many tried to make lists before going shopping. Cash or eftpos was the most common method of payment, followed by credit cards.
Most Couch members did their Christmas shopping at least one or two months in advance – even earlier if they saw a good deal. The majority bought presents for at least four people, most commonly buying for their children, other family members and their partners. Most usually spent at least $100, with just over one in five spending more than $700.
Almost half usually spent $200 or more on additional grocery shopping for the festive season, but nobody reported spending more than $1,000. Most people usually spent less than $100 on alcohol.
Just under half paid for everything upfront, with others taking varying amounts of time to pay it off.
Many Couch members said the current economic uncertainty would affect their spending during this festive season, and they identified several areas that they might cut back on. This included: buying less presents, buying for fewer people, making homemade gifts, buying more practical gifts, cutting back on food, alcohol, holidays, travel and Christmas decorations, and donating less money to charity.
Finally, various suggestions were made by Couch members on how to budget for the festive season. Many also thought it was important to prioritise family time and warned other families not to get caught up in the commercialisation of Christmas.
Most Couch members who responded to this poll were female (84%), living in an urban area (84%) and aged between 22 and 88, with an average age of 41. Most (75%) identified as European New Zealanders, 4% as Maori, two as Pasifika ethnicity, one as Indian, and 15% as ‘other’.
35% of participants reported always or often setting a budget for their festive season shopping.
67% of participants always or often use a list when shopping for Christmas presents.
75% of respondents usually buy presents for 6 or more people.
Most commonly, people buy presents for their children and other family members.
43% of respondents spend more than $500 on Christmas presents, in total.
Cash or eftpos was the most popular payment option identified by respondents.
Most respondents reported planning ahead – with just 19% reporting that they did they Christmas shopping in the last 2 weeks before Christmas.
75% of respondents reported always or often shopping with a list.
94% of respondents reported spending $500 or less on festive season food and groceries.
76% of respondents usually spend nothing or less than $100 on alcohol during the festive season.
Only a small number of respondents reporting using a pre-paid plan, such as a supermarket Christmas club.
53% of respondents used some sort of credit to pay for their Christmas/New Year spending last year.
64% of respondents reported feeling some stress related to this year’s festive season.
Finances are the most common contributor to festive season stress, according to respondents.
66% of respondents reported feeling pressured to spend lots of money during Christmas.
Just 36% of respondents definitely thought they would have to make no cutbacks due to economic uncertainty.
Q17: If you answered yes to the previous question, what will you cut back on and by how much?
Many Couch members said they would cut back on present buying in particular – and make more homemade gifts.
“I intend to make homemade things like sweets and photos.”
“Spend less on presents this year and also considering some homemade gifts.”
“Thinking of making some presents, rather than buying, and concentrating on getting ‘sale’ items for presents. Would be good to save at least $200.”
Some Couch members would cut back on the amount of people that they buy presents for.
“Spend less on gifts for our extended family.”
“Have agreed not to buy presents at all for those nieces and nephews.”
“Not buy for my husband or vice versa.”
Many said they would draw out a name of one family member to buy for, to allow them to cut back on the amount of people they get Christmas presents for.
“This year instead of each family buying for all the nieces and nephews we have set up a ‘secret Santa’ with a price limit.”
“Do a ‘secret Santa’ style present where we buy for one member of the family only.”
Another way to cut back on presents is to get couples a shared gift, instead of buying individual gifts for everybody.
“Maybe combine some presents to couples instead of individuals.”
“My parents will get a shared present.“
Some Couch members said they would buy more practical gifts that they would have needed to purchase anyway.
“Will buy items that are “needed” i.e. underwear, socks, toothbrushes, soap etc for stocking stuffers rather than toys.”
“Presents we do buy will be more practical, e.g. clothes.”
“Buy more essentials like clothes for presents.”
Some suggested not having stockings in addition to other presents, or reducing the number of small gifts inside.
“Probably buy fewer “stocking stuffers” and concentrate on one or two good quality gifts for children.”
Food or beverages may also be cut back on.
“Probably a chook instead of a ham.”
“Make my own mince pies etc instead of buying.”
“Grow our own veggies for Xmas day.”
Some people said they would save money by having less people over for meals and drinks.
“Less likely to entertain over the break.”
Some would be less likely to dine out or take trips to restaurants for their Christmas meals.
“Mainly associated Christmas activities like going out for meals.”
“Restaurants and outings.”
Some would cut back on their summer holidays and travelling.
“Holidays will be completely cut out.”
“We won’t be travelling as much this year.”
“I am not able to afford our main camping trip away this year.”
“Won’t be travelling to see family this year.”
The amount of Christmas decorations could also get the chop.
“Cut back on decorations.”
“Fancy lights and table dressings will be done away with.”
Many said they will not be able to donate to charities as they have done in the past.
“Reduce donation to charity this year.”
Some people indicated that they would take less time off work.
“Will go back to work as early as possible.”
Question 18: What tips would you give to others about budgeting for food/groceries/alcoholic beverages and presents over the festive season?
Advice given could mostly be categorised as follows:
“Make a budget and do not waver from it – be firm with yourself.”
“Buy the brands that are on special but only if the item is on your list – don’t get sucked into buying extras just because they look cheap!”
“Make lists for all spending – don’t substitute spending for thought (i.e. a carefully chosen present is often cheaper than a last-minute splash to avoid guilt).”
“Write a list. Don’t go overboard.”
“Plan ahead, buy presents during the sales.”
“Look for bargains and things on special.”
“Start buying something each pay day when it is on special leading up to Christmas.”
“Use Christmas clubs.”
“Definitely recommend taking advantage of things like Flybuys and Hotpoints at Christmas. I save all my points and then redeem them on vouchers to spend over the Christmas period every year.”
“Alcohol is a terrible expense so cut back on that – tell guests if they want it they should bring their own.”
“Alcohol is not necessary to have a good time and lots of fun.”
“Use fruit punch and ginger beer etc as alternatives to alcohol.”
“For family occasions share the load around, e.g. each family member focus on a course or contribution.”
“Make Christmas dinner a shared meal. If everyone contributes, the cost of catering for the whole family can be reduced to a manageable level.”
“Think creatively about activities and gifts: a walk in the forest is free, board games/charades are fun and free.”
“Be creative – homemade gifts are enjoyed especially because of the time put into them and people know this.”
“Make a realistic menu of what you will actually eat at Christmas time and don’t over-prepare the food.”
“Make a menu plan for Christmas day so you know exactly what you need and are less likely to go crazy at the supermarket buying things ‘just in case’.”
“Buy what you can ahead so that you pay as you go and don’t have a big bill in the Xmas week.”
“Pay upfront, no credit cards.”
_“Only buy what you can afford to pay for with cash.”
“Homemade gifts are enjoyed especially because of the time put into them and people know this.”
“Homemade is great if you can, and people appreciate the effort and personal touch.”
“[Make] homemade calendars with photos of your family etc.”
_“Don’t worry about impressing anyone.”
“You don’t need to keep up with the Joneses!”
Q19: Are there any other comments you’d like to make about budgeting over the festive season?
Additional comments included telling people to not get trapped into the commercialisation of Christmas; to keep things in perspective at all times and to plan and budget well in advance.
“Keep it in perspective; kids need quality time with the family, not expensive new presents.”
“Focus on kids – and good company – don’t spend money on (or time in the company of) people you don’t really care for – even if they are family/whānau!”
“The commercialisation of childhood is one of my greatest concerns on this earth. It seems harder to resist at this time of the year. I truly wish that retailers and marketers were a bit more ethical around this: market to me, not my 4 year old.”
“Don’t be seduced by the commercialisation of Christmas, but be satisfied with simple things.”
“Would be good if adverts etc didn’t target kids so much. We try to reverse this by buying some pressies to go on the charity trees in the shopping centres. Kids did it last year and found it novel to give presents to kids they didn’t know.”
“PLAN – know what you need for food/drink and gifts – write a list – then save and find sales throughout the year and the month beforehand – planning makes it much smoother and stress-free.”
“Plan plan plan, then you can afford last minute spending. Look for bargains, use lay-by facilities, only buy what you need.”
“Keep the occasion in perspective and see Christmas for what it really is and not a huge limitless spend up with money you may not have. The holiday period is not just one day, so keep in mind the school holidays in total need to be budgeted for – outings and holiday accommodation and petrol costs.”
“Don’t give in to festive season hype and social pressure; memories are not built on gifts alone but every kind action consistently throughout the year.”
“Don’t let the commercials tell you that you need to spend money to make your family happy.”
“Christmas is very commercial, we try to make it about family and time together, rather than presents.”
Many Couch members were looking at cutting back on spending for the festive season and offered some useful advice about how to do this. Planning ahead seemed to be the key. Even if it’s too late for this year, it may be something to think about for next year.
For help with budgeting refer to these websites:
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