The South African Savings Institute (SASI) is reminding consumers about the need to spend wisely and set aside a portion of their end of year earnings, in order to meet both new year requirements and future household financial demands.
SASI provides financial education and relevant financial information to consumers through various campaigns throughout the year.
This year’s Festive Season campaign, launched on November 6 under the theme, ‘Spend Wisely, New Year Ahead’, aims to refocus consumers on wise spending, to guide consumers on how to avoid unnecessary consumption expenditure and to drive a culture of saving during the Festive Season.
“South Africans spend more than they earn throughout the year, and this is compounded over the festive season when we are inundated by marketing and tempted by material goods we desire rather than need. People in all income brackets give in to debt just to make merry during the festive season,” said Prem Govender, chairperson of the Savings Institute.
She said that residents must remember that while the festive season creates celebration pressure, this is soon followed by household financial obligations in the new year which people cannot avoid or delay, such as equipping children for school, getting to work, medical expenses as well as food costs.
According to Govender, the steep rise in the cost of living has left little to save in 2013 and this will continue in 2014.
“The Consumer Financial Vulnerability Index indicates that the pressure on consumers’ cash flow remains high. Yet, the celebrations continue and many pay for annual holiday expenses out of long term savings, annual bonuses or increased credit card debt. Gifts are bought on store-cards or through the many credit options available. Responsible spending over the season without incurring debt – is a far healthier option for households’ long-term financial wellbeing. We need to take heed in the message of the Finance Minister’s Medium Term Expenditure Framework, that without savings and investment, our aspirations will remain unrealised,” said Govender.
