Guiding consumers since 2009

2 out of 3 cut back this Christmas

By Staff Writer

Two thirds of people will drastically cut spending on presents and festivities this Christmas

Two out of three people will be making substantial cut backs to their Christmas spending this festive season according to a survey conducted amongst users of the online financial guide www.justmoney.co.za.

When asked "Are you cutting back on your spending on presents and partying this festive season?" the results of the poll made for predictable, but discouraging reading.


• 66% of people said "Yes, times are tight so I'm spending a lot less this year."
• 20% said "I'm not spending as much as last year."


The tightening of belts comes as little surprise to Justmoney's marketing manager Andy Gilder, who fears that the retail sector is in for a particularly tough festive season as people shy away from buying numerous and lavish gifts for their loved ones.

"Many retailers rely on the Christmas surge to make or break their year. With financial stresses as they are at the moment, people have begun to cut back on luxuries across the board. Although the cut backs have been going on for some time, it may well hit the retail sector in earnest over the next month as many shops lose out on what is traditionally their strongest sales period."

"When 86% of people tell us that they are cutting back in some way, we can be certain that store owners are going to see their usual year-end sales take a dip from previous years. Even if the next few weeks see a reprieve in the form of an interest rate dip, people are struggling to keep up with higher food and goods costs and it could mean that big Christmas parties and stockings full of presents may be unlikely this year."


Of those that remained unaffected:


• 8% said "No change. I'm spending as much as much as I always do"
• 6% said "What money problems? I'm spending even more this year."

When it comes to Christmas savings tips, Gilder advises that people remember that most people are in the same boat when it comes to money issues this Christmas and that trying to "out-do" other's gifts would be thoughtless. "Choose gifts based on the interests and tastes of those you are buying for, not on the price tag or perceived value of the present."

When planning your family festivities, Gilder reminds us that festive feasts with all the trimmings can quickly add up, so when planning your end of year celebrations, why not plan something low key and simply invite your closest friends and relatives?

"While it is great to have large gatherings with all the extravagance, when times are tight it is luxuries like dinner parties that we should be saving on."

Recent Articles

Featured It’s possible to change your marriage regime

Many people wed before they sign an antenuptial contract (ANC). This is especially practiced by people in customary marriages and those not clued up about the ANC. The law says if there’s no ANC before the wedding takes place, the marriage will automatically be in Community of Property. 

Keep this in mind when taking out new financial products

Adding a product to your personal finance portfolio, such as insurance or an investment, is a big decision. We found out what you should keep in mind before taking out a new product, how you can assess the products you already have, and how you can generally improve your financial position.

Are you in debt denial?

With debt levels increasing at 13% more than income levels, South Africans are more debt-stressed now than arguably ever before. This is iterated by the National Credit Regulator’s (NCR) report that nearly half of credit-active consumers in South Africa have damaged credit records. However, only a few seek the necessary help.

Why should you invest in a mutual bank?

Often when people think about banking, they always think about commercial banks. Mutual banks hardly come to mind, but these banks offer investment opportunities that are often overlooked.

 

Deals

Blowfish Half-price Sushi Special

Price: Available on request
When: Wednesdays and Thursdays
Where: Cape Town

Da Vinci’s On Kloof Lunch Specials from R60

Price: From R60
When: Daily
Where: Cape Town

Stonehill River Lodge Stay 3 pay 2 Special

Price: Available on request
When: Until 19 March 2020
Where: Swellendam (Western Cape)