Kids get fussy
Coping with festive finances
Increasing pressure to have the best Christmas gifts waiting under the tree is driving parents to spend more to keep their children happy.
And as kids get fussier about what they add to their wish lists, parents are falling deeper into debt.
Children as young as three were becoming more brand-savvy, and recognising what brands were cool and what brands they were willing to wear - or not wear, Massey University retail management associate professor Jonathan Elms said.
‘‘They know where to search for information, they know what heart strings to pull for parents. 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 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,’’ Elms said.
‘‘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.
‘‘And, at the same time, our kids friends may have a part in that to say ‘ooo 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.’’
‘‘We want to buy more and more for our kids, as they get increasingly demanding.’’
However, Elms did not expect debt to slow down spending following the Christmas rush, he said.
‘‘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 reigns slightly, to be able to recover from what we spent.’’
Some people were even waiting until Boxing Day to do their Christmas shopping, giving their loved ones vouchers on Christmas Day saying they would get their presents the following day, he said.
‘‘That’s personally what I would do, but of course we are all under this pressure to make sure that our loved ones and friends get all the presents on the actual day.
‘‘But I think the most sensible thing would be to say ‘You know what? I’ll give you a voucher to effectively spend on Boxing Day onwards because you’ll get more for you money and you might get something better.’’
There was still a lot of confidence amongst consumers and retailers, especially with the introduction of international stores such as David Jones - who set up shop in New Zealand earlier this year, Elms said.
"They know where to search for information, they know what heart strings to pull for parents." Massey University retail management associate professor Jonathan Elms
Tips for Christmas shopping:
Stick to a budget Get as much information as you can about goods
Appreciate that you might be a better deal after the Christmas period
Remember all guarantees is still applicable after the Christmas period
Do as much research as possible - compare the best deals
Wait, be patient, and be informed