Most commonly, Couch members reported spending less on entertainment, leisure and sporting activities – as well as other discretionary activities like home renovations and charitable giving. Of concern, however, is the number of families cutting down on groceries (just over half) and on health services (just over a quarter).

{We} stay at home more {and} split as many costs as possible with friends/family.
Children’s after school activities and guitar lessons have been cancelled due to cost
Discretionary spending i.e. takeaways, movies
Home improvement plans cancelled
Charitable donations / voluntary work
Christmas & birthday presents. Treats for the grandchildren.

A number of Couch members reported that their dollar no longer seemed to be going as far, or that many things were costing them more. Others reported a general change in their overall spending habits.

We are buying less, but our money isn’t going as far
Prices have gone up so we spend more on things but our spending patterns remain as before
I don’t think we have actually been spending less, because of Xmas and the start of the new school year, but we have been trying … we are much more conscious of money than previously.
We look a bit harder for bargains and have located cheaper deals around for groceries and clothing.

Some respondents reported experiencing significant levels of hardship:

I’m in the situation now of having to choose most weeks between food or setting aside a portion for bills.
Been made redundant so things are pretty tight. Cutting back on everything we can.
We have been affected quite significantly – so I have cut spending in all areas
income in addition to super has halved. Super not inflation adjusted.

However, others reported that there had been little change for them, and in some cases that there were improvements in their situation.

Broke our mortgage to reduce mortgage payments
Mortgage repayments – yay – interest rates down!
We have always lived frugally so nothing has changed… we cannot skimp more… we seem to do a lot for our dollar but there is still enough for emergencies like the doctor and if there is a flat tyre etc
We have small children and are generally very careful with our money anway – economic downturn or not.

A number of Couch members reported some positive benefits to the changes in the economy, including more favourable mortgage rates.

Lower interest rates on mortgage have helped
ur minimum mortgage repayments are so much less than they were because of interest rates dropping.
Looking forward to paying mortgage faster when it comes off fixed term

However, not everyone’s experiences of the change to mortgage rates has been entirely positive:

Our fixed rate mortgage expired in October, when there was a lot of uncertainty. We had to go with the best interest rate available, but it was still higher than before. A month or so later rates were coming down but we are stuck with this rate for 2.5 years now, with higher repayments.
Stuck for another 18 months on a 9.5% interest rate. Cannot break the mortgage due to outrageous costs.
Spent thousands to break out of fixed rate mortgage which increased amount owed, but will hopefully save this by paying same weekly amount but at much cheaper interest rate.

Several people reported that their businesses had been affected:

Looking to sell the business because the stress of our current financial situation is very unpleasant.
Self employed. Already struggling. Harder to collect debts off customers.
People aren’t paying our business invoices on time so we are having to put personal money in and have extended business overdraft to try and trade out these hard times

Many Couch members mentioned credit card debt or debt repayments as an issue.

I am not eligible for a community services card based on my gross income, but actually a lot of our disposable income is going on debt payments.
Credit card limit is now almost permanently exceeded and the outstanding amount that needs to be paid off every month is getting bigger.
We took a consolidation loan to … get rid of cards debt which is very high in interest, and lessened the repayment burdens as well as reduced credit limits/cards.

Others, on the other hand, said that they either had no debt, or that there had been little change for them.

We do not have a debt position- we are not in debt.
We live pretty much debt free, paying off credit card bills before they’re due. Now that {our mortgage is} gone, we find we can live on a lot less per week.

Some Couch members said that the economic downturn had affected the way they thought about the future, or had altered their future plans.

My husband and I are concerned about the future and talk about it. I think that it is bringing us closer together as we try to work out ways to keep the business running effectively.
We feel we have to take life a bit more seriously. We worry a bit more about the future. I imagine I will be working harder and longer to pay the bills in the future and life will get harder. We try to treasure what we have now because we may not have it so easy again.
Less excitement when looking forward to the future due to so many factors being out of our control.
Many more discussions about what is important to us.

Employment issues were a common theme. Some mentioned redundancies affected them; many mentioned that young people in their family were struggling to find work.

My husband has been made redundant twice in the space of 2 months.
Stressful watching redundancy/reduced work affecting friends and their families.
We have five children, two of whom are looking for employment, one of which has just left school. {N}ot a lot of jobs out there for young people.
Teenage children unable to get after school and weekend jobs due to competition. Jobs being taken by adults instead, and less advertised positions.
Student finished studying is having a hard time finding work
We’re self-employed and have very little work for our staff and so are working really hard to get more work for them – otherwise we will have to look at reducing their hours.
I think my partner has been more stressed – he is an employer, and facing some tough decisions.
Reduced bargaining ability for pay increases and role changes.
Son has just finished university and has no job and is having difficulty getting work. Nephew likewise. I worry about them getting work. They have had to go on the unemployment benefit and they are well educated and personable. If they can’t get work… who can??

Couch members reported the economy contributing to a range of lifestyle changes:

I am more willing to buy food for foodbanks, and give to aid/charity
More thought about savings, insurance especially income protection, and more effort even than before into reducing debt.
Re-learning redundant skills such as backyard gardening; cooking more meals and going to thrift & farmer’s markets to get fresh produce rather than supermarkets.
Less visits from extended family, due to fuel prices and other high expenses.
Buying lower quality groceries as the price of these has increased – spending the same but having to buy less healthy options
Confined to home much more limiting social interactions when I already live alone. Loneliness can become a problem because family no longer have time or money to visit any more often to compensate.
We cannot afford extra-curricular activities for my son
We have less food to eat and it is less healthy. I couldn’t give my daughter even a small 16th birthday party.

Again, some people also mentioned that they had experienced positive change.

Due to secure job, it’s all good for us. Lower mortgage rates and housing has opened doors for future investment to grow assets over time.
We’re looking to move house & believe we’ll benefit from the relativity gap.

Q8: What advice, based on your own experience, would you give to other families about coping with the possible economic downturn (e.g. budgeting tips, ways to manage emotionally)?

Couch members offered a wide variety of advice on how to cope with changes in economic circumstances. Many mentioned avoiding credit and living within their means:

Always live within your income. Prepare a budget and monitor regularly.
Live within your means and save to buy goods, don’t go into debt for things that can wait.
Get out of debt, get out of debt, get out of it… burn the credit cards, spend only cash, if you can’t afford it, don’t buy it.

A strong DIY ethic also came through – with many suggesting that people should do more cooking from scratch, should grow their own food, and handle their own repair work:

Turn some of that wasted space in the back yard and the front yard into productive vege gardens and plant fruit trees.
Stop buying prepackaged foods and scratch make which will improve both your financial situation and your families’ health.
Learn basic mending techniques and clothes care. That will save a heap.
Invest in a vege garden/fruit trees in pots ~ not only is it good re food savings, its healthier, its family time as kids love to get involved, and if involved in the garden, less time out doing other things that cost money.
DIY – from cooking to carpentry. We can do much more for ourselves than we realise.
Remember that the difference between a good hair cut and a bad haircut is about 10 days!

Respondents also offered a range of tips on how people could stretch their dollar further:

Each week we look in the supermarket pamphlets. We go where things are on special. We have a budget and a shopping list which we stick to.
Reassess your insurance policies, banking procedures, subscriptions and such to see if there are some better ways of doing things to save on fees etc.
Don’t be tempted to use other banks ATM’s given the charges that arise from this practice.
Online banking and bill payments {are} cheaper than cheques or over the counter transactions.
Home made gifts and cards.
Minimise petrol costs by either carpooling or using public transport.
Purchase school uniforms 2nd hand rather than buy new.
Check whether you’re entitled to tax refunds or additional aid from WINZ.
You don’t need to out to a fancy restaurant and drink to have a good time with friends … it’s the company you want not the overpriced food.
Social life – free outings such as beaches, parks, visiting friends and council events.

A number of people also highlighted the importance of good support – both in terms of families supporting one another, and in seeking out support when needed.

Look for ways of supporting each other, family is more important than money.
Seek support – don’t hide away problems. Churches are great at helping.
Keep talking to your spouse/partner or a trusted support person, it always seems worse when you feel like you are doing it alone.
Share financial concerns with your household and debt counsellor before you get in too deep.
Try to get counselling /support for marriage or partner/ family issues.
Learn to discern and seek, trusted, wise and experienced help as much as possible

Finally, many Couch members pointed out that it was of vital importance both to have a budget, and to stick to it.

Q9. Would you like to tell us anything else about any effects of the economic downturn on your family, including wider family and whānau?

A number of Couch members reported not being affected directly by the economic downturn, but nevertheless being aware of its impact.

It has made us more conscious of the difficulties other families might be going through and we are doing foodbank donations with the kids so they understand pocket money isn’t just for spending on stuff but is also for helping others.
Hearing of people losing their jobs and homes is very distressing.

Others said that while they had not yet been affected, they expected to feel the impact of the downturn in the future.

We are on a farm producing export products so may eventually be affected worse than we currently are. The price of fuel and groceries is not really improving. They may eventually start to bite.
Most of my extended family are coping, but I think it is a bit of ‘wait and see’ for some as to how safe their jobs are.

Some Couch members didn’t consider that there was a downturn at all, or if there was one, it was beneficial:

There is no downturn in Taranaki. It’s a media beat-up.
I believe a lot of it is actually media generated, rather than reality for those of us living in NZ.
The constant media scaremongering makes it seem worse than it is. If your job is secure you might actually be better off than ever, with lower interest rates etc.
If anything this has been an ideal time to purchase items as they are cheaper than usual. If you can keep your job during a recession it probably works in your favour.
Honestly, with lower petrol prices & interest rates things are in some respects easier financially.
We’ve noticed no effect for any of our extended whānau.
Things are better than they’ve been for ages – low interest rates, cheap housing, getting back to basics & the cleaning out of bad businesses.

However, their experiences are in stark contrast with those of some Couch members who have experienced more severe effects.

We’re walking away from our small business, we can’t sell it and we’re not turning over enough to make even a small living off it.
We are about to lose everything, our business, our house and our remaining car. We are grandparents raising a disabled grandchild, worked hard all our lives and will have nothing to show for it.
My son who is a builder has, all but, been made bankrupt through no fault of his own. This has devastated my whole family and put a huge strain on my son, his wife and three children.
We are struggling with the cost of our fixed mortgage especially now that other costs such as food, electricity, gas, etc are rising. Although mortgage interest rates have fallen now this is no help at all to people such as us still in the middle of fixed terms.
Have 2 wider family members who are self employed and been unable to find work (building) and they have had to go on the dole. Very humbling for them, as they are in their 50s and never been on dole before.