Avoid a financial hangover this festive season

AS CONSUMERS become more confident about the economy, the risk of overspending over the festive season becomes increasingly real.

- NICOLA MAWSON

WITH festive spending on the rise, South Africans face new financial pressures. The writer shares strategies to manage holiday budgets, avoid overspending, and ensure financial well-being during the festive season. | PEXELS

(PEXELS)

For retailers, festive season shopping kicks off around Black Friday and continues through to just before Christmas, after which Back-to-School sales start.It’s during these times that wallets become exceptionally stretched, with short-term lender Wonga finding in a recent survey that 70% of South Africans expect to spend more than usual over the festive season. Its eighth annual Summer Spending Survey, of more than 10,000 South Africans, found that they plan to spend an average of R6,299 this festive season.

Chief growth officer for BOO! Campus Media Greg Potterton explains that the “Black Friday hangover” hits Gen Z (13to 28-year-olds) differently. “It’s not about regretting a reckless splurge, but about realising that the money they spent on their coping tools may not stretch into the next month,” he says.

Potterton explains that young people buy items to support their mental and physical health, but often worry they can’t afford to maintain purchases such as gym memberships. “It is a new kind of financial pressure that blends well-being with budgeting, and it is reshaping how this generation defines value and necessity,” he explains.