Financial advisors are cautioning Bahamian consumers to spend wisely this holiday season and have offered “penny-pinching” holiday tips to help buyers track and cut down on their spending.
Senior Manager of Investment Services at SG Hambros Ken Kerr said it is important that Bahamians looking to shop during the Christmas season take a serious look at their own personal financial situation before they go out and overspend.
“They need to identify what is required in terms of essential items for the holiday, rather than trying to keep up with the Jones,'” Mr. Kerr said. “We are in fact in a slow economy and the world is suffering from political uncertainty, with regard to the possibility of a war and more specifically to us, the US economy is slow which directly impacts economic activity in the Bahamas.”
He message is to hold back on spending too much and save to secure financial stability.
“So rather than overspending we need to be cognizant of these external factors that could impact us in a significant manner, so in terms of Christmas spending, Bahamians need to be focused on the very basic, absolute essentials,” Mr. Kerr said.
President of Fidelity Group of Companies, Gregory Bethel agreed.
Mr. Bethel said during this period of economic instability, Bahamians should carefully monitor their spending habits.
“I would like to caution them that there is a wave of change coming and it’s just around the corner, Bahamians should not lose focus on the things that are important, like providing a first class education for their children and for themselves,” Mr. Bethel said.
“Anyone of those two suggestions will be prudent through the years.”
He said he has heard of cases where Bahamians have taken out loans in order to purchase Christmas gifts.
“They do it and realize that it was a mistake later,” Mr. Bethel said. “But it has been my experience that most Bahamians are more focused on long-term implications rather than short-term gratification.”
Raymond Winder, President of the Bahamas Chamber of Commerce, suggested that Bahamians avoid getting into “significant” debt for the season.
οΎ ”If spending for the holidays, one shouldn’t purchase gifts outside of the amount they set to buy items,” Mr. Winder said. “So first of all they should set a budget as to how much they plan to spend for Christmas.”
“Also in purchasing, one should think whether or not these items would serve as valuable long beyond the rest of the year, or if the gift is only going to good for the season. Christmas is a very short season, so don’t spend huge amounts of money.”
Mr. Winder said Christmas club funds and savings should be used to facilitate purchases and not bank loans.
“People need to do their planning by shopping and not let impulse shopping be the determining factor. Don’t let the gift dictate your budget,” he said.
“Also, remember that we don’t know if there’s going to be a war in 2003 and there’s a chance that we’re not going to get the same amount of tourists that we’ve had in previous years, so it’s best to save now and not overlook the real meaning of Christmas and not allow man-made joy to be the determining factor.”
A principal of a private school who spoke under the condition of anonymity advised parents to prioritise during the holiday season.
“I can’t tell you how many times I have had parents come into my office, begging me to give them more time to pay their school fees so that their kids don’t get thrown out of classes because they have no money – all because they spent it during the Christmas,” she said.
“Parents have to exercise better judgment during these times, they can’t expect to spend all of their money on gifts and not budget for school fees. They have to decide what is more important and think accordingly.”
The financial experts urge shoppers are urged to shop months in advance and purchase gifts and decorations in the summer when prices are at their lowest and avoid shopping close to Christmas when its easier to buy expensive gifts on impulse.
Consumers can also be more creative with gift giving this season, by making homemade presents – saving both time and money, or by giving gifts after Christmas when store sales are in effect, the experts pointed out.
By The Bahama Journal
