South Africans collectively owe about R1.73trillion in debt and, although there have been signs of improvement, the urge to splurge could cause more credit spikes this summer - which makes it more important for families to have this sometimes awkward money-management chat.
Danelle van Heerde, head of advice processes and tools at Sanlam Personal Finance, says there’s no reason to wait out the holidays before families and partners have frank conversations about their spending preferences. On the contrary, she says turning a blind eye to the differences in how we either spend or prefer to save can lead to a lot more stress further down the line.
Decide on your budget. Look at your past bank statements, think of the big payments you still need to make (bond, rent, student loans, etc) and keep your savings goals in mind.
“There’s nothing wrong with either being a spender or a saver - both have their strengths. Moderation is key, though. If you’re too frugal, you may forego investing in things that could add real value to your life. If you spend too liberally, you could end up using debt for day-to-day expenses, which may damage your finances in the long-term. Learn from one another and stick to your plan.”