Alcohol and fireworks continued to be among the top priorities for South Africans during the festive season.
An average household is said to have spent at least R5 600 purchasing alcohol, with December 25,26, 31 and January 1 among the high consumption days.
On Christmas Day and the Day of Goodwill, South Africans are said to have spent close to R8-billion purchasing alcoholic beverages.
The number increased to a whopping R17-billion from the 31st to New Year’s Day.
According to a survey by Wonga, a financial services provider, reliance on credit cards and loans also increased from 27% to 32%, meaning some of the consumers also relied on credit and loans to cushion their excessive spending.
The study, Festive Spending Survey, noted an alarming decrease in reliance on savings.
Only 37% of people used savings for festive expenses, down from 40% in the previous year.
“It’s concerning that some consumers are dipping into retirement savings to fund their holidays, a trend likely influenced by the new two-pot retirement system,” the survey also noted.
Despite the poor economic outlook, the festive season spending habits also show that more households budgeted heavily for fireworks, with a single household budgeting at least R3 000 for firecrackers in preparation for new year’s eve. The numbers were also confirmed by radio personality Mo Flava, who said he had spent more than R3 000 purchasing fireworks.
The Wonga study was also complemented by another survey CGA by NIQ On Premise User Survey. It revealed that nearly half (49%) of South Africans now go out to eat or drink at least weekly, and two-thirds (67%) anticipate visiting eateries even more frequently during the holidays and into 2025.
Shené Mothilal, digital money manager at Standard Bank said the bank’s data, tracking the spending patterns of its retail customers, showed a decline in household spending on charity, donations, healthcare, insurance, family and home-related expenses such as home improvements and furnishings.
