WINDHOEK – In the coming weeks the spending of money will be central to many households as people budget for the festive season holidays.
For many households the best budget for the festive season is one that leaves sufficient funds for January, a month that is commonly notorious for inflicting serious cash flow problems.
For some it is the time when they go on a ‘swiping spree’ of debit or credit cards, a practice that pushes some shoppers to go over budget.
An easy way to avoid serious cash flow problems in January though, according to Standard Bank Namibia manager for public relations and corporate communications, Surihe Gaomas-Guchu, is to start with “a solid spending plan”.
“Look over your finances and decide how much you can afford to spend on your Christmas. Then divide this amount amongst all your expenses such as Christmas decorations, gifts, food,” she says. Gaomas-Guchu also said people must be aware that you simply cannot buy everyone a present. Hence the gifts list should be trimmed down to realistic levels dictated by the budget.
For the First National Bank (FNB) Namibia though, the festive season is the time when people use credit cards, especially on online shopping.
FNB Namibia says credit card spending among their customers increases by approximately 25 percent each December, while online shopping shoots up to 27 percent in the months to December compared to other months.
“Our statistics show that November 2013 online credit card spending on travel and entertainment increased by 30 percent and all other online purchases by 27 percent when compared to the rest of the year. Given customers’ increased comfort with online shopping we expect this trend to accelerate over the 2014 holiday period,” says Camanthea Izaaks, Credit and Admin Manager at FNB Namibia, Credit Card department.
Izaaks cautions credit card and online shoppers to be wary of “getting tempted” to go over budget.
“Your approach to online shopping should be no different than how you think about normal shopping: draw up a shopping list and stick to it. If you know what you are looking for you will be less likely to spend excessively or unnecessarily. You can also make use of the ability to compare prices by opening various retailers’ tabs or by simply using price comparison applications,” says Izaaks.
She also cautions that people shopping online should remember to find out whether they have purchase protection. “If merchandise or services ordered were not received by the expected delivery date or not of the quality promised, you can apply for a refund on the grounds of ‘Services Not Provided’ or ‘Merchandise Not Received’. Note however that this is subject to investigation, terms and conditions,” she says.
Further online shoppers should apply precautions to further reduce any risk. These precautions include regular updating of anti-virus and spyware software on all digital devices and minimising the storage of credit card details on as few sites as possible.
By Desie Heita