Financial Planning is essential to avoid overspending this festive season.

13/12/2018

The festive season is in full swing and one thing’s for sure: If you’re not careful to apply basic financial literacy, your bank balance might take strain. Don’t let yours become a victim to holiday stress! Our Financial Advisors offer valuable financial to help you avoid common financial mistakes this festive season.

 Be budget savvy

 Going on a mad shopping spree before the holiday’s means you’re likely to come up short in the New Year. While we all want to spoil our loved ones, you might end up paying for it in more ways than one.

Before you get started on your gift list, set yourself a personal financial budget. If you know how much you have to spend per gift, you can resist the temptation to spend too much.  Shop around and you will find great gifts that will suit your pocket. The trick is to do your research. You could also consider making your presents. We tell you how in this blog post: Save money with these handmade gifts.

 Dip into credit with caution

Your credit card can be your best friend, or your worst enemy… often, both at the same time! Just because the funds are available to you, doesn’t mean you have to deplete your credit allowance in one go. Remember, come January, there will be a whole lot of new expenses (like new work clothes, back to school/ college items). It’s important to keep all of these in mind.

If you’re ready to apply for an African Bank credit card, click here to apply in minutes.

The same goes for credit on your store cards. The best advice is to avoid spending on store cards – often the interest rate is very high – but if you can’t avoid it, be wise with your purchases.

Bills, bills, bills

 When you’re hyped up on holiday spirit, it’s easy to forget that your December salary has to last you until the end of January. So, before you start funding all those festivities, it’s essential that you plan ahead. If you know you have debit orders coming off your bank account on the 1st of every month, make sure you leave enough money in your account to pay those bills. Bounced debit orders are not only bad for your credit score, but will saddle you with extra finance charges. Also, having your utilities/ services “cut-off” is never a great way to start the New Year.

Resist the urge to splurge

Buying fabulous gifts for every member of your family can be a huge financial strain.   A smart way around this is to play Secret Santa.

This is how it works: Set a budget and let everyone know to bring ONE gift at a set value. Let’s say you have 10 people, then you’ll have 10 gifts. This means each person has to buy only one gift and will take home a gift, too.

There are many ways to play Secret Santa. The most fun however is by letting each person draw a number out of a hat. Whoever draws No1 starts the game and selects a gift. From the second person onwards, participants take turns either selecting a gift or “stealing” one of the already opened gifts from other participants. The last player is the luckiest – he or she ends up with the best present of the bunch. Click here for different ways to play Secret Santa.

Buying one gift as opposed to 10 relieves holiday stress, both financially and in terms of how much time you spend shopping.
Lucky number 13

If you’re blessed enough to earn a 13th cheque this December, remember to use it wisely! Instead of mindlessly blowing your cash, think of how you can put it to good use instead. We have put together a few important tips in this blog post: How to make the most of your bonus.

Up Next

Grow your money
The flexible nature of working from home is appealing for new moms and many opt for this when the pitter patter of little feet is on the horizon.

Publish Date: 17/04/2018
Read more
Getting to know Basani Maluleke
A new era started at African Bank on 1 April 2018, the day Basani Maluleke, was appointed as our CEO. Basani follows in the footsteps of Brian Riley, who saw the Bank through curatorship and laid the foundation for the exciting future that lies ahead of us.

Publish Date: 01/04/2018
Read more
Three tips: How to use your credit card wisely
There are more than 8.8 million credit cards in issue, and more than 38 types of credit cards available in South Africa. South Africans have on average one credit card. So. Question is, are you using your credit card wisely?

Publish Date: 22/02/2019
Read more
Dad, here’s how you can be your child’s financial superhero
Fathers are often their children’s first real-life superheroes.Children do as we do, not as we say. So dads, our question to you this month is – are you modelling good financial behaviour?

Publish Date: 04/06/2018
Read more
Saving to educate your children? Get the most out of your money
There is no greater gift that you can give your child than the gift of a secure education.We all want to give our children the very best, however, ensuring that you give your child a quality education costs money.

Publish Date: 09/07/2018
Read more

About African Bank

Our mission is to be a successful Retail Bank offering a wide range of products and services to the consumers of South Africa. The people who work for African Bank represent the diverse population of South Africa; therefore we are a reflection of you, of all South Africans. We seek to provide value - more than our consumers expect of us. We promise to live our purpose 'humanity through banking' in all that we do and we are confident that we can, because 'We are You'.