According to MEC Mohale Makalo, people become vulnerable and tend to spend their money on unbudgeted items or shop beyond their budget when it’s Black Friday, and also during the festive period. 

Makalo states that the majority of consumers change their spending patterns during the festive season and end up spending beyond their means and signing contractual agreements which they have not properly read. He adds that a lack of financial education and planning are contributing factors because most consumers continue to spend without considering growing inflation and the rising interest rate.

He further states that during this time, criminals also tend to take advantage of the hype. He therefore cautions consumers to be vigilant at all times with their hard-earned money, car keys, and bank cards.

“Become a smart consumer on Black Friday and during the festive season by saving or focusing on critical items such as next year’s school uniform, school fees and investments,” Makalo adds.

Makalo advised consumers to follow these steps to keep their spending under control during the festive season:

• Always plan ahead before you spend and work out what you can afford before you spend – draw up a budget.

• Always have a festive budget – putting down your income vs. daily living expenses and debt. This will help you to be realistic about what you can spend on gifts, travel, accommodation, and other entertainment over this period.

• Always pay your creditors (store accounts, insurance, and medical scheme) on time during the festive season.

• Avoid little purchases e.g. eating out, movies, daily takeaways, snacks, magazines, etc. It can all add up to one big debt burden.

• Avoid spending your 13th cheque/bonus on your “wants” instead of your “needs” e.g. expensive clothes are “wants” and school uniforms are “needs”.

• Always shop around for the best deals and prices before you make a purchase.

• Always be careful about the “buy now and pay later” deals.

• As you spend over the festive season, always remember that some bills such as electricity, water, and telephones do not go on holiday over the festive season and will need to be paid in the New Year.

• Avoid wasting money on inferior quality products because you will spend more money on repairs, e.g. cell phones.

OFM News