How to be smart about money this festive season
How can you manage your money better this holiday season?
The holiday season is a magical time filled with joy, togetherness and excitement for kids and adults alike. Although it's a time for giving and celebration, it's also a time when people tend to overspend.
That's why you should be conscious of your budget this festive period.
While many people have finished their Christmas shopping, some have yet to. We've got great money hacks that can help you 'do' the festive season better this year – or at least feel more prepared for 2025.
1. Set aside money for debits
Don't get 'tap' happy when you get paid your salary. Set aside money for your debit orders and January living expenses. Year after year, we see people scrambling to borrow money or relying on credit to cover back-to-school essentials – all because they failed to plan better.
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2. Switch to DIY
Despite what some might think, doing things at home can save you money.
For instance, instead of buying new Christmas decor (favours, tree
decor, table decor), get the family together and make it an arts and
crafts night.
Why buy baked goods, when you can make them at home? Not only does this save money, but it also provides much-needed family time.
Look into artisanal gifting and personalised gifting, too. These options might be more cost-effective if you approach a small business. Plus, the great part is that the gifts are truly one-of-a-kind.
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3. Avoid bad debt
Financial planner Johann Rossouw advises against using your credit card for gifting and experiences this festive season.
"Credit cards, store cards, and personal loans may get you something you want, but when used for luxuries, they do nothing to improve your financial situation,” he told Just Money.
4. Celebrate with family during the off-peak season
Instead of booking holidays and getaways during the festive season when things peak, consider spending the holidays at home. Plan your getaway for the off-season – you'll likely score great rates and avoid paying inflated tourist prices for leisure.
5. Don't cancel your insurance
Some people cancel their insurance to free up the extra money for holidays. You may not regret it now but don't take that risk.
Make your insurance premiums part of your budget, so you're not tempted to use that money.
Consider setting up a 'holiday season' savings account – something
easily accessible like a money market or current savings account. By
adding to it throughout the year, you’ll have a holiday fund ready when
the season arrives.
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