As Black Friday approaches, financial experts urge shoppers to resist psychological traps and plan budgets carefully to avoid debt. Last year's event saw South African spending surge, with FNB processing over R5.4 billion in transactions. Key advice focuses on preparation, impulse control, and using cash over credit.
Black Friday has become a major shopping frenzy in South Africa, drawing crowds with promises of deep discounts. In 2024, First National Bank (FNB) handled more than R5.4 billion via its Speedpoint devices during the period. Meanwhile, analytics firm Reveal noted a nearly 33% increase in online spending for November compared to the prior six months.
Financial advisors emphasize understanding the event's psychological pull. Rory Brachner, founder of Doshguide, explains that deals often exploit saving illusions: “The 50% off deal still costs you more than you would have spent. The illusion of saving is one of the biggest threats to consistent wealth building.” He advises evaluating purchases based on real needs: “It is only truly good if it serves a real purpose in your life – something that aligns with your needs or goals or delivers long-term value.”
Preparation is crucial, as sales now start in late October or early November. Brachner recommends creating a needs list and researching prices beforehand: “Identify what you genuinely need ahead of time... This helps you to recognise a true deal versus a marketing gimmick.” Wandile Mnguni from Nedbank suggests prefunding accounts: “Prefund your credit card or the account you are using to spend with the money you are looking at spending for the day, and set payment limits on your banking app that align with your budget.” Afua Darko of Sanlam Credit Solutions advocates comparing prices across stores and using AI tools: “AI tools can quickly compare prices across a wide range of retailers and help you to verify whether a ‘sale’ is truly a discount or simply a repackaged regular price.”
Debt poses the greatest risk. Mnguni warns against loans for impulse buys, while Brachner favors cash or debit: “Spending on credit can quickly erode discounts once interest is factored in. If you can’t pay it off immediately, it’s not a saving.” Darko illustrates with a R4,159 laptop: financed at 21% interest over 12 months, it totals R5,030, adding R871 in costs. “A deal is only a deal if you can pay the full amount within the stipulated period,” she notes. Credit rewards work only if prefunded, per Mnguni.
To fight impulses, Brachner proposes a 24-hour wait before buying and ignoring crowd mentality: “‘Everyone’s buying’ is not a good reason to spend. Deals will come again, but debt lasts longer.” He encourages redirecting saved funds to investments: “Delayed gratification is one of the most powerful wealth-building tools we have... Over time, those small decisions add up.”