FNB Commentary: Financial Principles To Keep In Mind In These Trying Times

FNB Spokesperson: Dhashni Naidoo, Programme Manager at FNB

Households will start to feel the financial impact of COVID-19 in the months to come. So it is important that we plan, prioritise spending, manage debt, use resources sparingly and be disciplined about sticking to the plan.  

• Children will be at home for an extended period – readjust your budget to cater for the additional costs that usually come with the kids being at home.   

• These trying times call for cautious spending.  Cut back on luxury items and unnecessary expenses.  Save where ever possible.  One cannot predict how long it will take for the situation to stabilise. The idea is that adopt a disciplined way to managing every cent and make sure we are keeping some money aside to help us weather this. 

• Look for specials, buy only what you need and use your loyalty reward programmes for relief.  

• Take advantage of the reduced repo rate by the South African Reserve Bank which is now at 5.25% and prime lending rate at 8.75%. This is a much needed financial relief for consumers, it means consumers will be paying less for debts such as car, home loan and personal loans. The extra available funds can now go towards your saving or paying off debt quicker.