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 Do you need credit to survive Easter?

Easter weekend is here and with it the expectation of celebration. While there is nothing wrong with this, it often means spending more money than you bargained for.

 

Read more

Young woman building a legacy brick by brick

When her dad passed away, Siyasanga Ngcongca, an internal auditing graduate, took over the family business. Ngcongca Construction, as her company is known, is a service provider to five insurance companies, handling building and commercial claims.

Read more

Can you evict paying residential tenants?

One of the most common reasons for wanting to evict a tenant is non-payment of rent. But there are many other situations that landlords may encounter. These can range from damaging property and breaching contract, to being reported as a continuous disturbance by neighbours.

Read more

How one entrepreneur designed her financial future

From as early as Cannon remembers, she recalls her grandmother seated behind a sewing machine. Through this influence she was sewing her own aprons and doll dresses by the time she was ten, and by the time she was 16, she started designing and make her own clothes.

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Hartbeespoort Romantic Weekend Special

Price: R2,999
When: Weekends
Where: North West

Da Vinci Happy Hour

Price: Available on request
When: Weekdays
Where: Cape Town

Glenburn Spa Easter Package

Price: From R1,065
When: 18 -22 April
Where: Muldersdrift