4 minute read
3 tips for making the most of Black Friday
By Kathryn Main
Positive financial lessons
Cynics argue that Black Friday doesn’t teach you any life-long lessons that you need to learn. Described by sceptics as a “capitalist consumption machine” that encourages consumers to spend till they drop - even if they are getting a steal on credit (borrowed money) - is just one of the numerous shortcomings of the entire event. But what if we told you that you can take all the bad from this event and turn it to a lifetime of positive financial lessons?
Black Friday is the biggest man-made discount event of the year. Dare we say, it might just be better than Christmas shopping. Falling on 25 November this year, many have their wallets and shopping lists at the ready for the shopping trip of their lives.
Happening over a minimum period of 24 hours, depending on each retailer, one would view the event as a coming together of not-so smart consumers spending money they do not have on things they do not need, in record time. It isn’t the best example to set for kids due the emphasis on consumerism and irresponsible spending habits. But what can we learn from this year’s Black Friday extravaganza that we can take away with us? Here are the three major lessons that you can learn from this big event.
BUDGET IN ADVANCE
Black Friday is happening for the eighth-year running, so it is safe to say that it is going to happen again in 2023. Budgeting a whole year in advance is a great way to plan for upcoming events. It’s also a great way to get your kids involved. Including them in the process of budgeting by saving R200 a month for twelve-months in preparation for the event can teach them, and you, the benefits of delayed gratification. A budget also encourages us to create a list of the essentials that we could not get during the year at a cheaper price. Creating a spending plan for our money ensures we don’t spend money we don’t have to start with
SAVING
Having a budget is one thing, but saving 20% of that budget after buying everything on your list of essentials will give you the zeal needed to continue the tradition into the following year. Take that 20% and do something for someone else. Why not donate toys or clothes to an NPO? Having the foresight and practice to save 20% of your budget here and there is a nice way to start giving back to those who need it more than we do.
RESPONSIBLE SPENDING
There are an enormous variety of products available on Black Friday. Retailers use the discount angle to get consumers through their doors and drive their sales up. This makes the “logical consumer” within us disappear for at least 24-hours, only to reappear when there is no money left to spend or when we are in severe debt due to overspending. This event just shows us, as well as our kids, what not to do in the event we can’t afford to go on a shopping spree. It shows how easy it is to land into debt and serves as an example of how to avoid these traps for your kids in the future. You must lead by example.
The biggest discount event on the planet is also the best way to teach yourself healthy spending habits as well as an alternative attitude towards money.
For those of you who have left the shopping list budget to the last minute and are looking to buy in bulk for the financially tough months that are about to follow, look out for great deals from large retailers. Do your homework and research into what you need and make sure you buy what is on the list. Do not be tempted by other bargains you can’t afford. Spending more than you planned will land you in debt and that is not how you want to start your 2023.
