4 August 2009
Tackling The Recession With Home Grown Remedies
Home brewing and growing veggies more prevalent as New Zealanders respond to recession
More than half of us are positive about our financial future despite high levels of concern about rising living costs in
a tough economic climate. According to an AMP report released today, Money Management and the Economic Environment, many
New Zealanders maintain their current lifestyle with a DIY approach.
In the survey, when asked about how they felt about their financial future, 58 per cent said ‘positive’. However, nearly
three quarters said they were concerned about the rising cost of living and many commented they are now doing things
themselves, that they did not do before, in order to better manage in today’s economic conditions.
Commenting on the survey, AMP Manager of Workplace Savings, David Wallace said it highlights New Zealanders’
resourcefulness.
“In these tough times people are getting their heads around what they need to do to manage and they’re doing it. What’s
interesting is that we’re not doing without, but rather doing it ourselves. Instead of complaining, we are feeling good
about taking responsibility and coming up with some simple ways to make life easier,” he said.
People cited a range of initiatives they are undertaking to get by in the current economic conditions, the most popular
of which appears to be growing their own vegetables. Other initiatives include having children cooking “takeaways”,
sharing bulk food purchases among extended family, swapping clothes at work, making their own pet food, swapping clothes
for fruit, selling clothes on Trade Me, brewing their own beer and wine and selling chopped up pallets for firewood.
According to the survey, New Zealanders are also more carefully managing their money in response to current economic
conditions. Many say they are now more likely to check their bank account and credit card statements thoroughly and to
actively try to reduce their debt. They are also more likely to set household budgets and be less reliant on credit
cards. Some people are changing their shopping habits, using shopping lists, shopping less frequently, buying in season
and in sales and seeking specials or buying cheaper brands.
People are less likely to have money left at the end of the week to save, and more people are worried about saving (35
per cent) than about job opportunities (30 per cent).
Mr Wallace said New Zealanders appear to be developing habits out of necessity that may be beneficial in the long term.
“We know there is some real hardship out there. However, New Zealanders appear to be developing some financial habits
that will stand them in good stead in the long term. While addressing their short term needs they are in fact acting in
their best long-term interests. It is heartening to see,” he said.
“Increasingly people see savings as a priority and are managing their money accordingly. This is a turnaround from the
days when people would save if they had a few dollars to spare. I’m hopeful that, given more people are now actively
managing their money because of the times, they will find they can continue to save even if it is not quite at their
previous level,” Mr Wallace said.
According to the survey, New Zealanders are also responding to today’s economic conditions by cutting back on
discretionary items. Nearly half are spending less on socialising, takeaways and eating at restaurants, and a quarter
have put off booking holidays. Nearly 40 per cent say they now make their own lunch and spend less on groceries. A third
are cutting back on electricity.
If current conditions continue, New Zealanders are likely to cut back further on mobile phone usage and television,
magazine, newspaper and gym subscriptions. However, they are less likely to reduce house, contents, risk and income
protection insurance.
A copy of the report is available on www.amp.co.nz
ENDS