The Christmas and New Year festive season, referred to as the ‘Silly Season’ by financial experts, is once again with us. It is a time when many make merry with family, friends and relatives, throwing caution to the wind and engaging in impulsive buying, celebration and making rash decisions, especially on financial matters.
As a matter of fact, people tend to spend more, unnecessarily, in the month of December compared to any other month. Research carried out in Kenya in 2021 on festive season behaviour shows that Kenyans spend 34 per cent of their money on food and drinks, 30 per cent on gifts, 22 per cent on Christmas decorations and 23 per cent on charity.
Based on the above statistics, the reality is that our spending behaviour during the festive season greatly impacts our financial trends in the New Year. As such, even as we give and receive gifts during the season, the best gift that we can give ourselves and our loved ones is to make realistic financial decisions, which impact our lives in the long run.
While spending our hard-earned money and ‘appreciating ourselves’ as Kenyans mainly say, is acceptable, spending in moderation, and only on necessary things, will help us in the period after the festivities.
Schools are, currently, closed for two months and many people, especially parents, may temporarily postpone the reality of school fees and back-to-school shopping. There is the temptation to spend money that should, ideally, be allocated for school fees, house rent and other basic needs on unnecessary activities, only to be caught off-guard in the New Year.
So, what should we do to avoid lamenting when the festivities are behind us and reality knocks? The first step is to ensure that we spend wisely during the season. If you have not yet done so, develop and implement a realistic budget and spend responsibly, mainly on necessary items.
It is also important to prioritise your recurrent expenses such as rent, school fees, food, water and electricity bills, and insurance, where applicable, among other essentials. If you are planning to go on holiday, book early to save yourself the stress and high cost of booking at the last minute.
Further, avoid buying on impulse, especially expensive gifts and items that you did not budget for, or are not of immediate necessity; resist those roadside sale signs – tempting as they are, and limit your visits to the shopping malls.
If you didn’t budget for a holiday trip, avoid the temptation to borrow to finance your comfort and merrymaking; instead, stay at home or opt for fun activities within your jurisdiction.
Lastly, from a spiritual point of view, the season must be guided by our needs and not our wants. As the Bible says (Philippians 4:19), God will supply all our needs from His glorious riches; it does not talk about our wants.
It is, therefore, important that we focus on our needs rather than wants. Do not succumb to pressure from friends and family to commit financial ‘crimes’ that will land you in a financial ‘jail’ once the holiday season is over.
Communication strategist
