The festive season brings mesmerising lights, family visits and joyful gatherings for many, but one thing often overlooked during planning for all this is the financial stress that tags along.
Nedbank financial management executive, Vanesha Palani, highlighted that this may include challenges to cover the costs of travel, food, and gifts.
“With such challenges at hand, you may turn to credit or sacrifice January expenses to make it through,” she said.
She suggested that the solution is not just making more money, but starting a festive savings plan sooner.
She urged South Africans to shift how they think about the festive season this National Savings Month, and treat July as the starting point.
She said it may seem odd to plan for a summer holiday during the coldest time of the year but adds “it makes financial sense”. She said saving bit by bit over five months is more manageable than trying to do it all from one pay cheque. The extra time helps avoid expensive loans or maxed-out credit cards, which she said often come with high interest and long-term consequences.
Palani said it often happens that a person begins the year with strong financial goals, which include saving more, spending less, and sometimes, starting to invest. “However, by mid-year, challenges come, including emergency expenditure, school fees, and fuel increases,” she said.
“Saving for the festive season isn’t just about getting through December, it’s about showing up for your future self with care, clarity, and confidence.”
She offers five practical steps:
- Plan with purpose
Estimate your festive costs from travel and food to gifts and entertainment. Then divide the number by the remaining months in the year to get to your monthly savings target.
- Open a dedicated savings account
It is better to keep your festive savings separate from your everyday spending.
- Automate your savings
Avoid the monthly debate about whether or not to save by setting up a regular and automated transfer.
- Track your progress
Watch your savings grow in real time through your banking app. For added motivation, place a picture of your goal, where you can see it daily.
- Celebrate the small wins
Reaching halfway to your goal, or simply staying consistent for a full month, deserves acknowledgement, but never dip into their savings for this.
She said South Africans often see budgeting as a burden when planning is not about restriction but about freedom.
“You don’t need to earn more to feel more prepared, you just need to start earlier, be consistent, and not be tempted. Use what you have, and commit to building habits that support the life you want to live, not just in December, but every month that follows.”
