Black Friday is it a Boon or Curse? Prevent Impulse Spending

The sales extravaganza known as Black Friday, marking a surge in consumer spending, has arrived. In the current economic climate, characterized by inflation and financial uncertainties, consumers must approach their purchases with caution.

Despite the challenges, there’s an opportunity to make smart decisions, securing bargains for the festive season or obtaining significant school items at reduced prices before the New Year.

Ester Ochse, Product Head at FNB Integrated Advice, emphasizes the importance of intentional budgeting during Black Friday. She suggests creating a structured purchase plan to identify essential items and save money, ultimately preventing financial stress.

To navigate Black Friday deals effectively, Ochse provides the following tips:

1. Create a list: Build a list categorizing items into needs, wants, and nice-to-haves. Prioritize spending on essentials like next year’s stationary or groceries, followed by discretionary items such as clothing, and lastly, indulgences like a new Smart TV or Air Fryer.
2. Set a budget: Determine a budget within your financial comfort zone, avoiding the need for credit. Allocate the budget to the categorized items, starting with needs, then wants, and finally nice-to-haves. Smart Budget on the FNB app under nav»Money makes budgeting easy.
3. Do your research: Research prices throughout the year to understand the normal cost of items. Compare prices across different retailers to ensure you’re getting genuine discounts. Check retail websites and sales advertisements before making purchases.
4. Use loyalty programs: Leverage loyalty points, such as eBucks, to offset costs. Explore using points for shopping items or finding travel deals. This not only helps with expenses but also aligns with budgeting using the Smart Budget app.
5. Shop safely: Exercise caution while shopping, especially online. Use a virtual card for added protection and potential eBucks earnings. Verify the authenticity of websites before making purchases and never share card details or PINs. Stay vigilant against phishing attempts.

Ochse emphasizes that while Black Friday presents a great opportunity for bargains, prudent management is crucial to avoid financial stress in the following months. Adhering to these tips ensures a more controlled and strategic approach to Black Friday shopping.