With black Friday and the holiday season ahead, consumers become vulnerable and are likely to overspend on unbudgeted items or shop above their means.
In a statement, the Department of Small Business Development, Tourism and Environmental Affairs (DESTEA) in the Free State has cautioned consumers to be wise spenders and save during the Black Friday and festive season.
MEC, Makalo Mohale has urged residents to be smart consumers on Black Friday and throughout the Festive Season, stating that saving or focusing on critical items such as next year’s school uniform, school fees and investments should be a priority.
“The majority of consumers change their spending patterns during the festive season and indulge themselves in the situation of spending money that they do not have. As a result, they end up spending beyond their means and signing contractual agreements which they have not properly read.”
Mohale explained that the lack of financial education and planning are contributing factors as most consumers continue to spend without considering growing inflation and rising interest rates
Another reason why it is crucial for consumers to be vigilant during this time when doing online shopping or banking, is because criminals are known to use this time to target victims.
The department has outlined the following tips to keep consumer spending under control during this 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.
“You have rights as a consumer. Understand them. Enforce them”.
Consumers are reminded to shop with January in mind and not to “fall for the hype” without carefully examining whether items were really worth buying and that the “discounted” price offered a genuine saving.
