PICTURE: PEXELS/GUSTAVO FRING
The festive season is often associated with gift-giving, family gatherings and celebrations, but the costs can quickly add up. From presents and groceries to travel and entertainment, December spending can put pressure on household finances.
Also see:Â Tips to spend less on Christmas shopping
South African consumer authorities have repeatedly encouraged shoppers to plan ahead, set realistic budgets and avoid spending beyond their means during the festive season. The National Credit Regulator (NCR) has also warned consumers against relying on unnecessary credit to fund Christmas spending.
Here are some practical ways to keep your Christmas shopping under control.
Set a realistic Christmas budget
Before heading to the shops, work out exactly how much you can afford to spend.
The budget should account for more than gifts. Include groceries, travel, entertainment, decorations, clothing and other festive expenses. The NCR recommends considering regular commitments such as rent, electricity, water, insurance and transport when planning festive spending.
Once you’ve set your limit, try to stick to it.
Make a Christmas shopping list
A shopping list can help you avoid impulse purchases.
Write down the people you need to buy gifts for, what you intend to buy and the maximum amount you want to spend on each person. South African consumer authorities have specifically advised shoppers to use lists to avoid buying unnecessary items.
Start shopping early
Waiting until the last minute can make it harder to compare prices and may encourage rushed purchases.
Shopping earlier gives you time to look for specials, compare different retailers and spread your spending over several weeks instead of trying to buy everything at once.
Compare prices before you buy
Don’t assume that a product advertised as a ‘special’ is automatically the cheapest option.
Compare prices across different retailers and consider the full cost, including delivery fees, when shopping online. The National Consumer Commission has also warned consumers to be cautious about discounts and promotions that may appear attractive but don’t necessarily offer good value.
Be careful with ‘buy now, pay later’
Credit can make an expensive purchase seem more affordable because the cost is spread over time.
However, interest and fees can increase the amount you eventually pay. The NCR advises consumers to avoid unnecessary loans and credit for festive shopping and to spend only what they can afford.
Don’t spend your entire bonus
A December bonus or 13th cheque can make it tempting to increase your Christmas spending.
Instead of treating the entire amount as spending money, consider putting some towards existing debt, savings or January expenses. The NCR has previously warned consumers to remember that December income also needs to cover expenses that arrive in January.
Consider affordable and meaningful gifts
A thoughtful present doesn’t have to be expensive.
Consider books, personalised gifts, homemade treats, photo gifts, affordable beauty products or something connected to the person’s interests.
For larger families, you could also agree on a spending limit or organise a Secret Santa, where everyone buys one gift rather than purchasing presents for every family member.
Also see: Better late than never: Tips for last minute Christmas shopping
Watch the small purchases
Small festive expenses can easily become a large bill.
Takeaways, coffees, snacks, entertainment and other daily purchases may not seem significant individually, but they can quickly eat into your Christmas budget. Consumer authorities have specifically warned that these smaller purchases can add up.
Remember January
Christmas shopping shouldn’t leave you struggling when the new year begins.
School uniforms, stationery, transport, groceries, bills and other January expenses may arrive soon after the festive season. The NCR recommends planning festive spending with these upcoming costs in mind.
Consider buying local
Buying locally produced gifts can be another option when putting together your Christmas shopping list. The South African government has encouraged consumers to support locally made products and businesses during the festive season.
Keep track of every purchase
Don’t rely on memory to monitor your spending.
Keep your receipts or record purchases on your phone as you shop. Subtract each purchase from your Christmas budget so you know how much you have left.
Don’t let Christmas become a financial burden
Christmas shopping doesn’t have to mean spending beyond your means. A clear budget, a shopping list and some price comparison can help you make more deliberate decisions.
Most importantly, remember that January is part of the Christmas budget too. Planning for the new year before spending on festive extras can help you enjoy the holidays without starting January under unnecessary financial pressure.
Also see: Tips for shopping second-hand clothing
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