Consumers need to avoid financial distress this Black Friday.
With Black Friday this week, consumers need to exercise ‘caution and self-discipline’ when managing money over this period.
This is the view of Dhashni Naidoo, Programme Manager at FNB Consumer Education.
She said a lack of financial discipline around Black Friday could very easily lead to financial woes, especially in uncertain times.
“You can avoid getting into financial distress over Black Friday by heeding the tips below,” advised Naidoo.
Tips from Dhashni Naidoo:
- Plan your budget in advance and be honest with yourself about what you can afford.
- Avoid spending funds you did not budget for.
- Do your research ahead of time – you need to know exactly what you want to buy, and determine the price of those goods upfront. Use this time to compare and understand the current price of the item you need. so you can establish if the discounted price you see on Black Friday is favourable.
- Buy only what you need and not because something is on sale.
- Don’t use debt to buy non-essential or luxury goods. Consumers should also remember that credit incurs interest.
- If you’re tapping into your long-term savings or emergency saving funds, this also suggests that you might not afford to be spending on Black Friday.
“Sometimes we are lured by the excitement as well as the appealing marketing. Therefore, we are tempted to buy goods simply because we are told the prices have been reduced,” explained Naidoo.
“It is important to understand whether there has been any substantial reduction in the price of the item you wish to buy. The easiest way to determine if there has been a decrease is to track the price over a period of time,” she advised.
She concluded by urging consumers to not be tempted to spend excessively, stick to a list and budget.
“Just because something is labelled cheaper on Black Friday, it does not always mean that it’s a worthwhile buy.”
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