Many South African households are still feeling the impact of the past few years, according to Mariska Oosthuizen, head of Brand at Sanlam.
Oosthuizen said people needed to have a creative, positive and financially confident approach if they wanted to enjoy the season without breaking their bank.
Here are four tips to help South Africans navigate the festive season:
Organise a toy swop
Toys are becoming increasingly expensive, especially during the festive season. However, you don’t have to splurge to buy their child a toy. Instead, organise a toy swop to save money.
Depending on the number of families you invite, the toy swop can be as big or as small as you want.
Best of all, you can do your part for charity and the environment by donating any extra toys to charity as well as recycling pre-loved toys.
Give the gift of an investment
“You can give your young adult children, who are still finding their financial feet, the gift of saving for their long- or short-term goals, which is now even easier with fractional share investing,” Oosthuizen said.
Oosthuizen said people could send investment vouchers as gifts to show their loved ones they were thinking about their future.
Have a financial New Year’s resolution
While many will be thinking about getting in shape to attain a summer body in time for the festive season, people should consider getting themselves and their loved ones in good financial shape too.
Oosthuizen said people could build their financial confidence by taking ownership of their financial journey and empower themselves by getting on top of the financial side of their lives.
“There are countless financial experts whose footsteps you can easily follow by reading their financial wellness books and they make for great gifts as we head into a brand-new year,” Oosthuizen said.
“You can help your loved ones navigate the South African economic climate, including avoiding overspending this festive season and building a solid savings nest for those rainy but also sunny days.”
Oosthuizen warned people to be cautious of deals that enticed them to buy on credit during the holidays. They should not be distracted by no-deposit deals because these could be more costly in the long term because of higher interest payments.
“Instead, spend your credit carefully by planning, and don’t buy anything you can’t afford to pay back easily. Knowing your credit status will help you stay on top of your finances this holiday season, so check your credit score to stay on track financially,” Oosthuizen said.