As South Africans get ready to host Easter brunches for their families and entertain the young ones with epic egg hunts, one thing is certain – family time could easily become a pricey affair. However, cautions National Debt Advisors (NDA), before you swipe your credit card for those last-minute Easter treats, take a moment to think beyond the four-day-long weekend.
Founder and Debt Counsellor at NDA, Sebastian Alexanderson says: “With petrol and diesel prices at an all-time high as a consequence of Russia’s invasion of Ukraine, it is advisable to carefully plan your Easter travels by carefully looking at the dent your transport and accommodation expenses will leave on your finances”.
Global food supply shortages are looming, price inflation is inevitable, and the price of oil is skyrocketing. With this hyperinflation, there isn’t a single South African who isn’t going to feel the pinch he says.
Alexanderson cautions consumers against squandering all their savings this Easter because the last thing anyone needs after the merriment of the long-weekend break is being overwhelmed with debt.
“Consumer spending is likely to increase now that the entire family is home, but deciding where to splurge and where to save is the first step to sticking within your limited budget,” he says.
Alexanderson also advises against using credit cards to pay for anything you can’t pay for with cash. “To make the most of your credit card, you should not live under the mirage that you can afford things you can’t,” he says.
To help South Africans avoid falling into the debt trap this Easter weekend, Alexanderson shares his top tips on saving:
• Budget, budget, and budget. If it hasn’t been included in your budget already, make a special budget for the Easter Weekend by mapping out what are needs versus wants. This will help you to see exactly what to eliminate if you need to make a major cut in your expenses ahead of the holiday. With a budget, you can see where your money is going and what you can afford to spend it on.
• Resist the urge to splurge! Whenever possible, don’t buy anything you cannot afford. Studies show that as consumers globally are embracing the long-awaited return to normalcy following the pandemic, many consumers will be flocking to retailers to stock up on all their old Easter favourites. Easter gifts, food, and confectionery products are anticipated to be among the biggest drivers of retail income this season. Moreover, with many still grappling with the adverse economic effects of Covid-19, South African consumers are expected to take advantage of Easter specials and bulk buy on groceries and other household essentials.
• A closer destination: The Easter holidays may seem a delightful opportunity to extend your work sabbatical into a super long break along the coast. But if your pocket does not allow it, a short drive down to a local park for an Easter picnic is also a sterling contender. Since domestic tourism has gained popularity over the past two years due to restrictions imposed by recent lockdowns, residents all over the country have happily discovered the fun in their own backyards.
• Save on gratuitous expenses by being creative with your Easter activities. This could include getting everyone to pitch in for the brunch, making your own Easter egg baskets, dyeing your own eggs (you could also grab a few eggs from the fridge for this), and finally, for the first time, last-minute shopping is your best friend. The earlier you buy chocolate eggs for Easter, the better you can plan your Easter activities – but if you wait until the last minute, even one day before Easter, you might find that you can get a discount as stores prepare to clear their stock.
• Keep an emergency fund as backup. If you incur any unexpected expenses such as a car breakdown during your easter travels, having an emergency fund can help you. A good rule of thumb when saving for an emergency is to have at least six months of salary set aside.