Every December, South Africa shifts into financial high gear, as more money moves through household accounts in a few weeks than at any other time of the year. BankservAfrica data shows that holiday-period transactions run into the tens of billions of rand in this one busy, sales-filled month, with cash payment alone in December 2024 reaching over R87 billion!
Despite this rush of money movement, very little of it ends up being saved for the future. According to Sisa Nkatu, Head: Retail Investment at Nedbank, that’s an unfortunate reality, given that the average household savings rate in South Africa is close to zero.
“We have normalised a pattern where December is all about spending first and thinking about the future later,” says Nkatu, “but the problem is that ‘later’ keeps moving out, and the cost of catching up keeps rising.”
Nkatu emphasises that saving and investing should not be treated as a luxury for people with spare cash – it has to become part of how we make everyday money choices. “The festive season is one of the few times when extra money arrives for many people in the form of bonuses, overtime pay, stokvel payouts and side-hustle income,” she points out. “Those flows are already happening, for a lot of people, but unplanned money has a tendency to disappear just as quickly as it arrives. If you don’t have an immediate need for that extra income, directing it into an interest-bearing account means it starts working for you right away,” she explains.
She suggests that South Africans need to start seeing December not only as the end of the year, but also as the starting line for the next year. So, instead of asking, “How far can I stretch my bonus to buy as much as possible?”, she encourages people to as the question “What portion of this money can I pay forward to my future self before I start spending?”
This doesn’t mean you have to cancel the holidays or feel guilty about every purchase; it just requires that you focus on a few clear decisions about saving some of your extra money – and making that an annual habit. Nkatu says one way to do this is to decide on a fixed percentage of any bonus or stokvel payout that you can put into a 24-hour notice account like the Nedbank JustInvest Account, 32- day notice account or 12-month Fixed Deposit account.
Digital banking tools make these investment choices easier. Through platforms like the Nedbank Money app it’s easy to open investment accounts with low minimum deposit requirements, set up recurring contributions and track their progress and growth. Best of all, if you have this automated savings rule set up, you probably won’t even notice that the money leaves your account when you get that extra income at year-end.
“Think of saving like getting fit,” she says. “You can’t wait around for the perfect day to start looking after your health. You have to begin with what you have and build steadily and consistently. Every contribution – even a few hundred rand a month – is like a gym repetition for your finances, that strengthens your future,” she explains.
And using some of your extra cash to fund your future isn’t just financially savvy – it also has emotional benefits. Instead of facing the dreaded “Januworry” on the first day of 2026, you’ll be starting the year with confidence and a sense of progress. And, over time, those yearly December saving choices will compound into solid balances that can support children’s education, pay for a much-needed holiday, or even prevent you having to use credit when that next great deal comes around. “You don’t have to choose between enjoying today and securing tomorrow,” Nkatu says. “By treating this spending season as a starting line, and by directing a small share of December’s money flow into savings, you can celebrate now and give your future self the powerful gift of a better chance of long-term financial freedom.