South Africans are heading into this festive season in better financial shape than they have been for years. The latest Nedbank Financial Health Index shows that a greater number of people than before are spending less than they earn and paying their bills on time. What’s more, around 71% of people say they have a monthly household budget, and two-thirds of those actively track it and use it to manage their spending.
Buli Ndlovu, Executive Head of Personal and Private Banking Marketing at Nedbank, says this shift is about more than just getting better at ‘balancing the books’, it shows South Africans are being more deliberate with every rand and keeping their long-term goals in sight.
However, she highlights that the holiday season is still the ultimate test of these new money muscles. “This is a time when year-end money temptations are everywhere, and it’s easy to let your financial guard down,” she says, “but that doesn’t have to be the case, and with the right tools and a clear plan, December doesn’t have to automatically equal overspending.” She offers the following ‘cheat sheet’ for enjoying the festive season without sabotaging your #GetMoneyFit progress in 2025.
- Think of December as your financial final exam for 2025
If you already budget and track your spending, treat December as the exam that shows whether those habits really work. Before you swipe a card or open a purse or wallet, map out a detailed festive budget including food, travel, family visits, data, petrol, giving and entertainment. Then commit to keeping track of what you spend so that you can go big on experiences and generosity, but still stay within limits that protect your financial health. - Start with January, then work backwards
For many households, the real festive season financial shock comes in January. The majority of South African parents know that back-to-school costs set them back financially, and mot end up feeling stressed about these expenses. And with education expenses rising at above-inflation rates, Ndlovu’s advice is to ring-fence your January debit orders, school fees, uniforms and transport before you even begin to plan any festive fun. “When you get paid in December, create a January money cushion in a savings account,” she urges, “so that you don’t end up spending January’s money on December festivities.” - Spend on memories, not just on stuff
It’s human nature to spend more when you’re relaxing with friends and family over the holidays. But to keep that spend impulse fromturning into regret, Ndlovu suggests applying a “rands-per-memory” rule. Before committing to an expense, ask whether it will create a meaningful shared experience and memory or end up as another forgotten purchase or unused item in a few months’ time. “Low-cost picnics, home braais, game nights and beach days often deliver much more joy than expensive status buys, and they do far less damage to your January bank balance,” she highlights. - Make your bonus work twice as hard
Festive debt is always a big risk, especially with big sales and family gatherings prompting us to spend money we don’t actually have. To avoid this, Ndlovu recommends splitting any year-end bonus, stokvel payout or extra income the moment you receive it. “Decide upfront what percentage you will put aside to support your future goals like emergency savings, school fees or paying down expensive debt, and move it into a separate account,” she advises. “Then the remainder can be your guilt-free festive fund – but remember that once it’s gone, the party’s over!” - Plan your moments
December always involves a rush of cash and card spending activity for most people. To stay in control, plan your calendar the way you would your training schedule. Ndlovu advises thinking of potential high-cost outings as “cash-cap” events, where you withdraw a fixed amount and stop spending when it is finished. Balance this with “no-spend days,” where you only cover essentials and focus on free activities like walks, board games or visiting friends.
Ndlovu emphasises that financial fitness is built, and maintained, one smart choice at a time. “While the temptation is strong over the holidays to let your financial fitness take a rest week or two, the better choice is to use this spending season as an opportunity to prove that your new money habits are strong,” she says. “That way you can enter 2026 with an intact budget and a well-funded bank account.”