FINANCIAL FITNESS BY JESSIE TAYLOR
HOW TO AVOID FINANCIAL STRESS THIS
Festive Season
T
he festive season is a time for celebrating with loved ones – but these celebrations can often cause financial strain on families. The period is associated with the creation of debt, as many South Africans extend themselves financially. And after more than 18 months of economic downturn, many citizens may find themselves yielding to the temptation to borrow. However, there are ways to stretch your hardearned funds without putting yourself in debt this festive season. FINANCIAL TRAPS Research ahead of the 2020 festive season estimated that South Africans would spend around R200 billion – or roughly R5 706 per adult. This amount is more than a third of the average South African citizen’s take-home salary. The survey found more than three-quarters of respondents say they spent more than usual over the December period, with food and drink their most considerable expense. The average South African household spends an estimated 50% of its budget on food and beverages. Travel, both commutes and holiday trips, also ate up a large chunk of the respondents’ budgets, followed by gifts. But this year, with steep increases in living expenses due to the economic downturn caused by the global pandemic, coupled with job losses, many South Africans may find themselves unable to meet the demands of the festive season. Last festive season, 47% of South Africans said they were financially worse off than the previous year – something they attributed to the pandemic and resulting lockdowns. Only 20% said they had remained in the same position financially compared to the previous year.
50 | Public Sector Leaders | November 2021
