“It’s the most wonderful time of the year,” as the festive jingle says – but the season also brings temptations to overspend. From enticing sales to ‘buy now, pay later’ offers, it’s easy to fall into financial traps and begin the new year with regret.
CreditSmart Financial Services urges South Africans to make informed financial choices this festive season. According to managing director Wikus Olivier, more than 10 million South Africans have impaired credit records – a concerning reality that highlights the importance of responsible spending.
“Avoid debt traps disguised as festive deals and discounts,” he says. “Focus on improving your credit profile, understanding your financial limitations and resisting excessive debt to safeguard your financial well-being.”
Here are Olivier’s 5 tips for smarter festive spending:
1. Plan for sales and festive spending
Why it matters: Planning helps prevent unnecessary debt.
How to do it:
- Create a list of needs vs wants.
- Set a spending limit for sales like Black Friday and Cyber Monday.
- Use budgeting tools or apps to monitor purchases.
Key takeaway: A spending plan reduces the risk of overspending and relying on credit.
2. Budget for gifts and avoid impulse buys
Why it matters: A defined gift budget avoids emotional and impulsive purchases.
How to do it:
- Determine how much you can afford to spend per person or gift.
- Pause before making purchases during sales.
- Consider cost-effective options like Secret Santa or Pass the Parcel.
Key takeaway: Thoughtful, creative gifting doesn’t have to strain your wallet.
3. Host collective celebrations
Why it matters: Sharing costs makes celebrations affordable and inclusive.
How to do it:
- Shop early for deals on non-perishable items.
- Organise potluck-style gatherings where everyone contributes.
Key takeaway: Collaborative celebrations bring people together while keeping expenses manageable.
4. Shop smart and practise cyber hygiene
Why it matters: Online shopping can lead to overspending and security risks.
How to do it:
- Stick to your shopping plan and avoid aimless browsing.
- Be cautious of deals that seem ‘too good to be true’.
- Ensure online safety by checking secure websites, avoiding public Wi-Fi and updating device security software.
Key takeaway: Disciplined shopping safeguards your finances and personal information.
5. Don’t spend what you can’t afford
Why it matters: Avoiding debt ensures peace of mind and financial stability.
How to do it:
- Prioritise essentials like food, school supplies and living costs over unbudgeted festive indulgences.
- Resist tempting credit offers and remember: the bank’s money is not your money.
- Avoid overextending your budget to prevent stress and regret.
Key takeaway: Saying ‘no’ to unnecessary spending now can protect your financial future.
A season of smarter celebrations
As 2024 draws to a close, remember the festive season’s true spirit: celebrating achievements and cherishing time with loved ones – not overspending. By following these five practical tips, you can enjoy a joyful festive season and enter 2025 financially secure.
“This festive season, celebrate smarter, spend wisely and prioritise financial wellness – a gift that keeps on giving into 2025 and beyond,” concludes Olivier.
Image credit: Freepik