This “silly season” – the joke will be on cash-strapped consumers, as skyrocketing food prices, escalating fuel prices and general cost of living are set to put a damper on their ability to enjoy the holiday with family and friends.
With Black Friday around the corner, experts have warned against the urge to max out credit cards and go into short term debt to go on splurges, because of tough times ahead.
Experts agree that while enjoying the holiday season is important, it’s equally essential to approach spending with caution and awareness, by focusing on necessary purchases, sticking to a budget, and avoiding the temptation to overindulge or dip onto the twopot system, consumers can still enjoy the holidays without jeopardising their financial health
Economists Dawie Roodt, Ulrich Joubert, and consumer law expert Trudie Broekmann are all advising South Africans to be mindful of their spending habits this year.
With the high cost of living, rising food prices, and the economic outlook remaining uncertain, the message is clear: enjoy the festivities, but make sure you can afford it.
According to Roodt, an economist, the country is still facing significant financial pressure, and many South Africans are adjusting their spending habits accordingly.
“People are under a lot of financial stress, so they are more conscious of their spending during the silly season,” Roodt explains.
This, he believes, will result in a “weakish” silly season, as many consumers will be cautious due to the ongoing economic strain.
Despite the festive season’s typical consumer-driven boom, Roodt points out that South Africans must plan ahead and budget wisely.
“Go out and enjoy yourself as much as you want,” he advises, “provided you’ve planned for it, budgeted for it, and can actually afford it.”
Joubert, another economist, adds that food prices have surged in recent months due to persistent drought conditions affecting local agricultural production.
Many households are already feeling the impact of high food prices. With the cost of living continuing to rise, Joubert emphasises the need for careful spending.
“Food prices have risen quite a lot, and because we are still dealing with the drought from the last summer rainfall season, the costs are even higher,” says Joubert.
While there is some hope that conditions may improve in the year ahead, he cautions that the cost of living remains high, making it crucial to be mindful of financial priorities-especially school the following year.
“One of the main concerns is that people often forget about the essentials, like school fees, books, stationery, and school clothes, that are just around the corner,” Joubert said.
As many South African families struggle to make ends meet, the urge to indulge in luxury items during the holidays could create future financial headaches.
Joubert stresses that even if there are discounts or sales on holiday items, it’s essential to understand the “real price” of those goods and avoid impulsive purchases that could stretch already strained budgets.
Broekmann, a Cape Town attorney specialising in consumer law, highlights how the current financial landscape is forcing many South Africans to rethink their spending choices.
“Consumers are being forced to be more conscious and cautious when spending in today’s economy,” she says.
This is particularly evident among middle-income and lower-income households, where studies reveal that many are struggling to cover basic needs.
Broekmann cites research showing that families receiving income grants often cannot afford to feed a family of four adequately.
“There’s a huge discrepancy between what people earn and what they need to spend on food and other essentials,” she notes. As a result, many are substituting expensive items, such as premium food brands, with more affordable options like supermarket brands or even tinned fish in place of meat.”
With 2025 approaching, Broekmann recommends that consumers focus on securing good deals for essential purchases rather than spending on luxury items or non-essentials.
“In 2025, consumers should prioritise deals on their necessities, buying in bulk where possible, and only indulging in luxury spending if it has been carefully budgeted for,” she advised.
Both Roodt and Broekmann also raised concerns about the temptation to dip into the new two-pot retirement system, which allows individuals to access part of their retirement savings. While it may provide short-term relief for those facing financial strain, the experts warn against using this option for non-essential spending.
Roodt warns that people may be tempted to tap into their retirement savings for gifts, holidays, or other temporary expenses.
“People are really going to dig into their two-pot savings to spend on all sorts of things, which is unfortunate,” Roodt warns.
While accessing retirement funds may seem like a quick fix, it’s important to remember that these funds are meant for long-term financial security.
“Unless it’s an emergency, leave your retirement savings for retirement,” says Broekmann.
As South Africans gear up for online shopping this holiday season, South African Banking Risk Information Centre (SABRIC), CEO Nischal Mewalall also warns about the rise of cybercrime during the festive period.
“Criminals are taking advantage of the busy shopping season to create fake websites that mimic legitimate retailers,” he explained.
To avoid falling victim to these scams, Mewalall advises consumers to be extra vigilant when making online purchases.
“Never click on links in unsolicited emails or SMS messages,” Mewalall advises. Always type the website URL directly into your browser or search for the retailer in your search engine.”
He also warns against making payments outside of secure e-commerce platforms and reminds consumers to monitor their bank accounts for unauthorised transactions.
tracy-lynn.ruiters@inl.co.za