Sylvia Walker | 22 November 2024
Sylvia Walker is a financial planner at Andrew Prior Consultants. She spent many years in a senior management position at Old Mutual before venturing out of the corporate world. She is also a freelance finance writer and author of several non-fiction books.
As household budgets continue to tighten, groceries are expected to be the most popular purchase this Black Friday.
People with more spare cash may take advantage of clothing and accessory deals again, just as they did in 2023, according to Akshay Bhayroo, data science head at FNB.
“For some, it may even be a good time to buy a big-ticket item, indicating a balanced approach to taking advantage of discounts on both essential and non-essential items,” he says.
Planning your purchases enables you to maximise your savings. Howard Gabriels, credit division lead ombud at the NFO, believes that the key is to do your research throughout the year, compare prices, and plan your purchases strategically.
He plans to upgrade his outdated TV to a smart TV this Black Friday and has researched the specific model he wants to ensure he gets a good deal.
“I’m wary about falling for the illusion of a ‘special’ only to discover later that it’s even cheaper in January, when the festive season ends and retailers often slash prices further,” he says.
Alicia Moses, senior consumer education specialist at the Financial Sector Conduct Authority (FCSA), agrees, saying that she uses the January sales to buy clothes for her children for the next season and sizes up the garments. She isn’t planning to buy anything on Black Friday this year, but deals on groceries she planned to buy anyway, are a winner for her.
Internet research allows you to easily compare the cost of specific items at different retailers.
“Saving R500 on an item may not seem like a lot of money, but it’s an extra R500 that could go towards your emergency or retirement savings,” Ester Ochse, product head at FNB Integrated Advice, says.
Before making a purchase, Ochse suggests that you consider whether you really need the item or if it’s an impulse buy. In addition, consider whether you have space in your budget for your purchase?
“If you haven’t, adding it to your cart and then paying with your credit card can result in short-term euphoria, followed by immediate buyer’s remorse, and being saddled with a long-term debt,” she warns.
To avoid impulse buying, Ochse suggests setting a spending limit for what you will buy on the day, what you will wait a day to buy and what you will think over for a week before buying. For example, set the limit for purchases you will make today at R100 and buy an item if it costs less than R100.
Then set your limit for things you will buy after considering whether you really need it for a day, at, for example, R300. So if the item costs more than R100 but less than R300, wait until tomorrow and re-evaluate if you still want it. Then for items that cost more than R300, consider whether you really need it for a week before purchasing it.
Gabriels warns that Black Friday can be a double-edged sword if you intend to shop on credit. To avoid this, he starts saving in January in anticipation of the annual Black Friday event.
“Avoid using credit at all costs,” he says, emphasising that if you use credit to fund a purchase, the interest and administrative charges could make the deal more expensive.
Saving up each month allows you to shop guilt-free because you are well prepared for the shopping frenzy, avoiding the burden of debt or reckless spending.
“Preparation truly makes all the difference!” he says.
Black Friday may throw up deals you think are too good to pass up, as long as you were planning to spend on them anyway and have the means to pay for them. 
Gabriels says for him, home maintenance and essential car parts would be game-changers and too good to pass up. His wish list includes a plumber’s service and car parts, particularly tyres, which are practical purchases you need to make anyway.
Moses says her Black Friday wish list includes discounts for fuel, education, levies, rates and taxes, public transport, school textbooks and school fees.
There may also be things on your wish list coming up as good deals. When it comes to those tempting “wants”, remember not to act on impulse - carefully check them out and how they will fit in your budget.
Moses admits she might be tempted by a good holiday deal, either local or international.
“It would be a welcome trip for my family and me, but I would carefully consider details such as the terms and conditions, validity periods, and expiry dates.”
Ochse has no plans to spend money on Black Friday, and she generally avoids buying big-ticket items at this time of year. She admits that she might also be tempted by an amazing travel deal to carefully consider her options.
When shopping online, only deal with legitimate retailers who provide secure payment methods. Use credit cards rather than debit cards to protect your financial information. “Always look for the https:// on the website URL or the lock icon as an indicator of security,” Gabriels says.
Moses also says that you can use a website vulnerability scanner available on www.yima.org.za to check the validity of specific websites.
Watch out for phishing emails, fake websites and social media posts that appear to offer unbelievable deals on Black Friday. Avoid clicking links in unsolicited emails and only shop on reputable websites.
Shopping offline also carries significant risks. The hustle and bustle of busy malls and shops can distract you, resulting in silly mistakes like leaving your phone in a changing room or failing to close your handbag properly.
Lastly, keep receipts and documentation for all purchases. “This is crucial for returns or in the event of any disputes regarding fraud,” Gabriels explains.
Moses reduces the spending limits on her cards around Black Friday and throughout the festive season. She leaves her credit cards at home to avoid overspending and impulse purchases.
“With children, there is always a little something to buy here and there, and when you tally it all up later, it’s often a surprise,” she says. “However, you should be aware that January is just around the corner, with all of its associated costs.”
