South Africans are spending more each festive season, even as household budgets tighten. Stats SA reported that retail trade sales reached about R114.8 billion in December 2024, up from R111.4 billion the previous year, a 3.1% year-on-year increase.

The biggest gains came from clothing, footwear and general dealers, showing that families continue to spend more over the holidays, which can place strain on household finances.

Consumer surveys show households are already feeling the pressure. In TransUnion’s Q2 2025 Consumer Pulse, 52% of South Africans said they had reduced discretionary spending in the past three months, and many planned further cuts, evidence that festive enthusiasm continues to clash with financial reality.

Certified financial therapist Nathan Astle, a marriage and family therapist and client financial counsellor at Beyond Finance, a debt resolution firm based in Texas, says the most effective way to avoid overspending is to plan before the season begins.

Setting a total holiday budget early and writing it down, he explains, creates a mental boundary that helps prevent emotional spending during sales. Once that figure is fixed, Astle recommends sharing it with a partner or trusted friend who can act as a sounding board when impulse buys arise. Checking balances weekly in December also helps keep spending visible and manageable, turning what might feel like a vague intention into a habit of accountability.

Astle adds that generosity does not have to mean extravagance. Experiences such as shared meals, time spent together or handwritten notes can carry far greater meaning than expensive store-bought gifts. Simple, personal gestures often linger longer than material ones.

The goal, he says, is not to eliminate joy or celebration but to enjoy the season without facing a financial shock in January.