New Zealand Gen Z Embraces Side Hustles to Fund Holiday Spending

Kiwis, particularly from the Gen Z demographic, are increasingly turning to side hustles to finance their holiday expenses as the cost of living continues to rise. A recent survey conducted by the small business accountancy firm MYOB reveals that over two in five (43%) of Gen Z respondents in New Zealand expect to supplement their Christmas spending through additional earnings from side businesses, bonuses, or seasonal work.

In Christchurch, Tom Fraser, a 24-year-old physiotherapist, has launched a company called Quantum. This venture upcycles retired climbing ropes and yacht sails into products such as camera straps and chalk bags. Fraser started the business to cover his expenses, which range from student loan repayments to holiday plans and music festival tickets. He has found success with Quantum, allowing him to reduce his hours at work and focus more on his entrepreneurial pursuits.

Fraser noted, “The business has grown and now I’m working part-time on both. The business was more of a hobby but now it’s become an actual support, working out better than my job.” He works approximately 50 hours per week on Quantum, using the income to fund his lifestyle, particularly his climbing and social activities.

The MYOB survey also indicates that many young Kiwis are resorting to credit to manage holiday costs. Approximately 44% of Gen Z shoppers plan to use credit cards or buy-now-pay-later options more than they did in the previous year. This trend raises concerns about financial sustainability during the festive season.

Dean Chadwick, MYOB’s chief customer officer, acknowledged the financial pressures facing Gen Z but pointed out that they are responding by leveraging flexible work opportunities. “Rather than pulling back on their spending entirely, Gen Zs are maximising flexible work opportunities or supplementary income boosts to help relieve some of the additional cost-pressure that comes with the holiday season,” Chadwick stated.

Despite their increased spending, the survey revealed that Gen Z consumers are cautious about their finances. They plan to spend an average of $328 on dining out and $176 on gifts during the holiday season, which is significantly higher than the national average of $140 for gifts. Around 60% of respondents indicated that rising food and grocery prices are their primary financial concern, followed by rent and energy bills.

The poll further highlighted that KiwiSaver remains the most popular savings vehicle, with 62% of Gen Z participants using it. Additionally, 30% reported having an interest-bearing savings account. Notably, 22% of respondents aged 18 to 24 and 39% of those aged 25 to 29 own stocks or shares. Only 9% of those surveyed said they have no savings over $1,000.

As the holiday season approaches, the data illustrates a shift in how younger generations are adapting to economic challenges while trying to maintain their lifestyle. While side hustles provide a solution for some, it is crucial for them to balance additional work with their overall well-being to avoid financial strain and burnout.