The Sunday Mail
Economists have warned against overspending by consumers during the festive season, so as to avoid creating an unsustainable debt load entering into the New Year.
Traditionally, the festive season is characterised by impulsive spending and unnecessary expenditure which leave many people struggling to make ends meet come January.
High travel costs as families visit resort towns or rural areas — a tradition which is deeply rooted in many Zimbabweans — has also been seen to hit hard on disposable income.
In some cases, parents with school-going children find themselves struggling to pay for tuition, basic home supplies and utilities due to a huge debt overhang created from the holidays.
Other expenditure that creates an unnecessary drain on peoples’ income during the Christmas festivities are parties, new clothes and trinkets for loved ones.
Harare economist Mr Witness Chinyama cautioned against misplaced priorities by consumers and called for a clear definition of goals, budget outlines and lists of top priorities.
He said the basic principle of economics requires one to prioritise as limited resources chase unlimited needs and wants.
“People should list down the needs and wants according to importance, deal with the most important matters first like school fees, farm inputs to avoid unnecessary pressure next year in January. In fact, why not pay school fees now,” he said.
“Families differ, their needs, wants and incomes so it is important for them to understand why they really need the holidays.”
Mr Chinyama added it was imperative to look beyond the festive season to avoid serious debt headaches.
According to the Investopedia, on surviving holiday hangover, living within one’s means is an easier way to manage expenditure and stay out of debt.
“You do not need to go into debt to have a happy and memorable holiday season. Keeping your finances under control can help you keep other challenging aspects of the holidays under control. Remember that Christmas is a time for enjoying and being thankful for your family and friends and this should not be in sacrifice of your saving goals,” it states
The Consumer Council of Zimbabwe has also cautioned against exciteable spending.
The consumer body also warned consumers to be on the lookout for con artists and bogus sales and promotions meant to lure people who were eager for a bargain this holiday.
Fraudsters and thieves take advantage of the increase in human traffic in central business districts, bus termini and shopping malls to tempt people with non-existent offers.
“One thing we are all aware of is that there is limited money in our pockets and we want to see this stretching to cover all the other things that we want to buy for Christmas, pay school fees, rent and many other essentials.
“We urge consumers to shop carefully and not to be mesmerised by colourful, splashy sales and specials on display which are usually at the front of the shop – yet there might be better priced products inside, at the back of the shop.
“Ensure that you check the sell-by dates and quality of products so that you are not saddled with sour milk, curdled yoghurt and expired tinned foods,” advised the CCZ.
