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 Can you afford an ambulance in South Africa?

When a loved one is straddling the line between life and death, you won’t hesitate to call an ambulance. This week, Justmoney found out how much an ambulance ride costs in South Africa, whether you can refuse to get into an ambulance, and who pays the bill if you’re unconscious. 

Read more

Discovery Vitality: The impact it had on my health

It’s nearly 30 degrees outside, but my windows are closed to prevent further wildfire smoke from entering my bedroom. I’m hopping around, squatting and lunging my way into my “cardio zone” so that I can earn 200 points on Discovery Vitality and meet my weekly activity goals.

Read more

Rand runs out of steam in lead-up to budget speech

For all the foreshadowing that was done last week in terms of the two big speeches by the head of states in the United States (US) and South Africa (SA), very little happened as a direct consequence thereof.

Read more

The cover you need at every age and stage

Insurance is often neglected during people’s twenties and inflated during their forties. So, which insurance products should you pursue at which age?

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

President Hotel Easter Special

Price: From R1,500
When: 15 March to 30 April
Where: Cape Town

Kulula-Preskil Island Resort Special

Price: R16,999
When: 11 May -14 September
Where: Mauritius

A Touch Of Madness Tuck In Tuesday Special

Price: R70
When: Tuesdays
Where: Cape Town