Hold onto your hard-earned cash

IF YOU are thinking of splurging this Black Friday, economists are warning that with an economy in the doldrums, it would be wise to keep your cash.

- TRACY-LYNN RUITERS

With Black Friday on November 28 and Cyber Monday following on December 1, experts are warning South Africans to approach the festive shopping period with caution.

While Black Friday has grown in popularity, becoming a cultural phenomenon in a short period of time, economic pressures, high debt levels and the rise of online scams mean shoppers must plan carefully to avoid financial hardship.

Economist Dawie Roodt said that despite the allure of discounts and the surge of online shopping, he expects subdued demand this year.

"Only a few years ago, we didn’t even know about Black Friday. Now it's part of our culture, but I suspect we won't see very strong spending here. People are used to online shopping and already have the gadgets they need. More importantly, the economy is under pressure and demand is likely to be weak. I do not see people splashing out this festive season."

Roodt added that although inflation is currently low, wages are not keeping pace with the cost of living.