Splash out on fun - Kiwis' answer to the recession

More New Zealanders are cutting their spending because of the recession but the dollars they do spend are going on food, fashion and fun, a survey shows.

The survey, conducted as part of the MasterCard consumer purchasing priorities index, interviewed 6011 consumers in 14 countries about their spending priorities for the next six months.

Of at least 400 New Zealanders questioned, 89.75 per cent planned on spending the same amount or less money over the next six months, compared to the six months before.

And 80.5 per cent said they planned to save more or the same amount of money.

Dining and entertainment were listed as Kiwis' most important extravagance, 78.5 per cent of the New Zealanders surveyed saying it was top of their spending priorities.

In second place were fashion and accessories, followed by fitness and health.

The majority of New Zealanders who were planning to save money put retirement as their top priority, followed by travel, then property.

MasterCard Worldwide's New Zealand manager, Stuart McKinlay, said the results mirrored those of last year's survey, when dining and entertainment were also New Zealanders' top spending priority.

"Kiwis continue to prioritise dining and entertainment as their top discretionary spend category," he said.

"Despite the economic outlook, it still looks like people will continue to undertake some activities as a treat or a way to unwind."

Asia-Pacific MasterCard Worldwide economic adviser Dr Yuwa Hedrick-Wong said the recession appeared to have had a less serious effect on the urban middle class in the Asia/Pacific, Middle East and Africa region than previous downturns.

"Private consumption is holding up well, and in many markets consumers are planning to maintain or increase their discretionary spending in the next six months.

"Everything else being equal, the latest findings in consumer purchasing priorities are very positive for a stronger outlook of domestic consumption, in spite of persistent uncertainty in the global economy."

Those surveyed were asked to rank their spending priorities in 10 categories which included dining and entertainment, education and travel.

They were also asked to rate the categories of the goods and services they were planning to buy in the next six months, rate how important each of the categories was, and say if they were planning to cut their spending in each area.

The survey, which is conducted twice a year, also revealed the resilience of consumer purchasing.

New Zealanders reported that they were least likely to cut back on costs associated with fitness and health, followed by the costs of their own education and their children's extra-curricular activities or private tuition.

All of those surveyed either had a credit card or were eligible to obtain one.

We asked a random sample of Aucklanders how the recession has affected their spending plans

Jo Haylock, 22, primary teacher

I'm not much of a spender anyway. I'll save, and then spend in big blocks. I think you get less for your money - I make my own lunches now.

Vikki Haylock, 20, student

I've been spending money on Trade Me, not going to the shops as much, and looking for cheaper stuff.

Chad Wilkie, over 60, business consultant

I'm not spending on meals or dining out or luxuries, just the essentials. And I think a lot of folks are doing the same.

Steve Jones, 28, student

I'm going back to school - they are talking about how it's the best time to go back [and study]. I was an audio engineer but now a lot less people are going to live events. Alison Bennett, 45, works in insurance

My spending has changed a bit. I'm more careful, especially with groceries and luxuries. People are suffering but it hasn't hit me that hard.