It's important to talk to everyone in your family about your Christmas budget. Photo / 123rf
“Nothing is better than a well-planned spontaneous Christmas.”
That is the view of Rotorua Budget Advisory Service manager Pakanui Tuhura in the lead-up to what can be an expensive time of the year.
He said the aftermath usually happened after the big event when it was time to repay loans, hire purchase and buy now, pay later schemes.
“It can be a trap if you don’t follow the rules and limit the number of debts incurred.”
However, the biggest trap was people bowing to pressure and the expectations of people around them, he said.
“Do the best you can on what you can afford.”
A lot of lower and middle-income earners had also not coped with the increasing costs of living.
“They have minimised their spending and in some cases given up on the idea of trying to save for the future. Their only real recourse is now to increase their income somehow.
“They live day to day but know that their budget can’t be sustained in the long term.”
In Rotorua issues around housing, energy, fuel and food costs were starting to take their toll and test household resilience, he said.
He advised people to seek help from a budget service financial mentor to take stock of where they were at and the options available for increasing income or reducing costs.
Tuhara hoped people would remember to enjoy the things Christmas was about before it became strongly commercialised.
Bay Financial Mentors manager Shirley McCombe said some of its clients had more than 15 buy, now pay later purchases running at once and were facing hundreds of dollars in repayments every week “usually just as their children are returning to school”.
McCombe said in preparation for Christmas she would also like to see people have a plan and stick to it.
“We all want to spoil the people we love but if the impact is that we cannot pay our essential costs, we are putting our family/whānau at risk. Christmas can be so stressful for everyone, especially when everything is so expensive.
“Talk to your family, they are probably feeling just the same, cut out presents to the adults and make the meal potluck. You’ll reduce the cost and be much less stressed.”
Jane Eynon-Richards from Rotorua Citizens Advice Bureau said Christmas could be a stressful time, especially for those doing it tough financially.
“With the cost-of-living crisis, this year will be particularly challenging for many. The act of giving brings joy – to the giver as well as to the receiver - and is something almost all of us can do, even when money is tight.
“One special way of celebrating Christmas would be to give some time or other support to people in need, if this is possible for you.”
She said if people could not afford a Christmas holiday a good idea was a staycation and taking advantage of free activities in the community which could include walks or going to the local park or lake.
- Source Rotorua Budget Advisory Service