Smart financial planning for a stress-free festive season

The festive season is upon us, and for many South Africans, it is time to take a break: whether that means shifting into party mode or taking time to relax; it's all about kicking back, connecting with friends and family, and soaking up the holiday vibes.

But be wary, the December fever has a way of testing even the best-laid budgets. The expenses can pile up quickly, and you can experience unspoken pressure to say yes to everything and everyone.

While being responsible with your finances in December may feel counterintuitive and perceived as holding back joy, we mustn’t forget that ‘Janu-worry’ lurks in the shadows and that joy can turn into a financial nightmare.

According to the Momentum Group Bureau of Market Research survey, household expenditure in South Africa is about 77% of household income, illustrating that SA households already struggle to balance their finances.

This situation can be exacerbated during the festive season, and consumers risk taking financial decisions that, in the long term, will not be beneficial for them and their families.

Something we’ve picked up in our business is that in an effort to increase disposable income, policyholders tend to skip premiums, and while it is a benefit there for tough times, it is also critical that policyholders understand the implications because it could cost you and your family long-term.

We encourage our policyholders to plan, and we have provided many ways for consumers to pay in advance, such as through WhatsApp or PayShap, so you can enjoy your December knowing you and your loved ones remain protected.

Here are some additional financially responsible behaviours to consider to make sure you and your family thrive during the festive season and beyond:

• Balance generosity with stability

When a bonus, 13th cheque or stokvel payout arrives, it is important to balance generosity in the spirit of the festive season and stability in the months to come. Make sure that you put a little money away and apportion the rest to making memories with your family now.

• Review and refresh your policies.

During December, it is important to make sure your funeral policy is up to date, because the festive season comes with lots of travel, extra spending, and unexpected emergencies. Take a moment to confirm that your premiums are paid so the policy remains active while also updating any personal details or beneficiaries that may have changed during the year.

Your family should also know who your insurer is, what your policy covers, and where the documents are kept, especially if you’ll be away from home. If you’re travelling long distances, check whether your cover includes transportation or repatriation benefits, as these can prevent unnecessary financial strain. These will save you from panicking and taking out last-minute policies out of fear. This way, your loved ones will be protected from the emotional and financial pressure that often comes with sudden emergencies during the holidays.

• Stay safe online

The festive season is filled with deals from retailers that are exciting, especially online, but remember scammers love the holidays too. According to a study by the CSIR’s Cybersecurity Centre, South Africa loses about R2.2 billion a year to cybercrime, and that number is likely rising. To stay safe, consider using a virtual card when making any purchases online. Stick to trusted websites and keep your guard up – it’s not a bargain if it comes with identity theft, or parting with your hard-earned money and nothing to show for it! It is important to note that the scammers also have the ability to impersonate your insurers and sell fake policies – using phishing emails or WhatsApp messages. Also, make sure to verify the identity of anyone you’re sending money to. Scammers often disguise themselves as legitimate buyers or sellers to trick you into paying them.

• Bring your family on the financial journey with you

Bringing your family into the conversation is how you build progress that includes everyone. When we talk honestly about what things cost, what we’re saving toward, how inflation is changing prices, and which policies keep us protected, we turn financial planning into something shared. Planning together means moving forward together as a household so that if anything happens, the family can step in and truly support each other.

Remember, December is just one month of the year. Let's protect what really matters – our commitments to ourselves and our families, our savings goals, and our ability to cover the essentials. With a bit of planning, you can enjoy every festive moment guilt-free and start the new year feeling financially confident instead of stressed out. 

* Dlungwane is senior finance business partner at Metropolitan.

PERSONAL FINANCE