The festive season is supposed to be a time when we celebrate with family and give thanks for what we have.
Yet every year people dread this time because of the financial pressure it adds and most households find themselves further indebted by January. We are expected to buy gifts for family and friends, we have to entertain ourselves and our children for the five- week school holiday and all the socialising often results in massive credit card debt. The festive season has become a financial pressure cooker.
But this year it really can be different. In many ways this recession has brought back the meaning of Christmas. Because everyone is in the same boat we can talk honestly about not being able spend the kind of cash we normally do at this time.
People have cut back on holidays and will spend more time relaxing at home. For the first time our family has agreed to a one-present policy. We are each buying one gift (with a cap on the value) and then playing a game to decide who gets what present.
It will be the fun and laughter of the game rather than the actual gift that we will remember most. The children will receive only one present from our extended family so we won’t face that gluttonous ripping of paper as they mow their way through piles of gifts which will be broken or forgotten in the weeks to come.
This year Christmas just feels more exciting. We are focusing on our celebratory meal by all coming together to spend the day preparing it. If you look back at all the Christmases of your past, what you will remember are the things you did, not the gifts you received.
This is the year to put boundaries in place and find ways to celebrate without the financial stress:
- Draw up a holiday budget: Work out your entertainment needs, gifts and holiday expenses. This will probably be a shock — we are used to just whipping out the credit card and worrying about the bill a month later.
- Debt is not a gift: Many people did not get bonuses this year so it is likely that your spending expectations are more than you can afford. Reality check — it is the sight of the beautiful box wrapped up under the Christmas tree rather than what is inside it that excites people. So is it really worth buying a gift that will be forgotten long before you have finished paying for it?
- Be honest: One thoughtful gift is better than a truck load so sit down with the family and play open cards. Explain to your children the real meaning of Christmas and that it is not just about presents. Buy gifts that will bring the family together such as a board game or activities for the pool.
- Cash diet: Once you have your budget, stick to it by using cash. Put money for gifts and groceries into designated envelopes when you go shopping so you do not fall into the temptation of buying what you don’t need.
- Be appreciative. Financial coach Linda Smith says rather than focusing on what you don’t have, be thankful for what you do have to spend this holiday and see it as a gift in itself.
Finally, and most importantly, be generous to those who have so little, many are struggling merely to put food on the table.
Rather than spending on superfluous gifts, buy a gift for someone who really needs it or, even better, give of your time during the holidays.
How to use your credit card to get discounts
Did you know that your MasterCard could have given you R200 back when you spent R1 000 at Stuttafords or that your Visa Platinum card qualifies you for up to 20% off purchases at Timberland?
Most people are familiar with the rewards programme which allows you to cash in loyalty points for goods and services, but few know about the discounts and services their cards entitle them to, and certainly the participating stores are not quick to mention it.
There are three main card payment systems: MasterCard, Visa and American Express. All three offer specials and promotions over and above your bank’s individual offering. It is worth going online to find out exactly what benefits your card entitles you to.
- American Express: Amex offers a large range of discount partners and it also has an extensive loyalty programme. You can get discounts at stores such as Giovanni Uomo, Gillani, SunStar Diamonds (a massive 40%), BU Homme, Digital Planet, Polo and Wine Web. It has deals with 36 restaurants which often include a complimentary bottle of wine. Check it out at www.americanexpress.co.za
- Visa: Timberland is the most exciting offering; Visa Platinum cardholders receive between 10% and 20% off purchases. Cardholders receive free alterations and a courier service. Other stores that will give discounts to Visa Gold and Platinum customers include kalahari.net, Digital Planet, NetFlorist, Jeauval Hair Salon and Mangwanani Day Spa. Visa card travellers can get discounts with Europcar, SA CAB and Sun International. Keep an eye out for new promotions at www.visacemea.com
- MasterCard: Does not have a list of products, but it runs promotions regularly. For example, one recent promotion included discounts at Stuttafords of 25% on international brands, as well as R200 off a R1 000 purchase. This was available to all MasterCard customers. MasterCard also ran a One-for-One campaign for Gold, Titanium and Platinum cardholders in which customers qualified for a second item absolutely free with the purchase of certain items including air tickets and hotel bookings. Keep an eye on future promotions on www.mastercard.co.za