Demanding kids pressure parents into Xmas debt
‘ If they don’t have the money in the bank, they have to borrow.’ PROFESSOR JONATHAN ELMS OF MASSEY UNIVERSITY
CHRISTMAS demands from fussy and savvy kids are driving their parents into debt.
Children as young as three recognise which brands are cool, says Massey University retail management associate professor Jonathan Elms.
And that adds up to pressure to have more expensive Christmas gifts waiting under the tree.
‘‘They know where to search for information, they know what heart strings to pull for parents,’’ he said.
‘‘We all want to make sure our kids are happy.
‘‘I think there is more and more societal pressure to make sure that our kids aren’t dissatisfied with anything that 123RF they receive – regardless of that being Christmas or not – and we strive to make sure we can provide the best, or what we perceive to be the best, for our kids.
‘‘We are spending a lot more on products, brands and services to appease our children around Christmas time and I think if we didn’t there would be a degree of [negative] social stigma,’’ Elms said.
‘‘And, at the same time, our kids’ friends may have a part in that to say ‘oooh you didn’t get an awful lot for Christmas, that’s not good. I did, so that means my parents love me more than you’. It’s absolutely crazy.’’
As a result, debt levels were rising, he said.
‘‘If they don’t have the money in the bank, they have to borrow, causing debt – and that is increasing.’’
However, Elms did not expect debt to slow down spending following the Christmas rush.
‘‘I think people are really excited. I think they are probably much more excited this year than they have been for a while, but the whole thing is crazy.
‘‘Kiwi consumers are still spending on the Boxing Day sales, so we may see – in March and April – a pull back in our spending, pulling in our reins slightly, to be able to recover from what we spent.’’
There was still a lot of confidence amongst consumers and retailers.