Retailers over the decades have used discounts to incentivise sales. R99 sounds so much less than R100. Offering a 30% discount on Black Friday still gets you to spend 70%.

Where did Black Friday start……As the story goes, stores in the US operating at a loss (“in the red”)  would go on sale the day after Thanksgiving, making massive profits which took them (into the black”) Hence, “Black Friday”.

Black Friday creates FOMO..

Because it’s discounted I must buy it….. I really need this……It’s a bargain so I have to buy it……. I’ll buy it now and pay for it later. For whatever reason, the outcome is a transaction based on the perception of value created by a discount only available on the day. This creates a huge fear of missing out.

Not only retailers benefit……..       Black Friday pushes credit limits on credit cards and loans benefiting the banks. Cell phones are used for many online purchases benefiting cell phone providers cashing in on all the data used to transact. Courier services delivering the goods to your door have a huge benefit.

The aftermath silences the season  Black Friday leaves a void with retailers for the remainder of the festive season as it soaks up most of the consumer’s spend. Stores are left with fewer customers as there is less money to spend.

We can assume that the frenzy leaves many consumers in more debt under the guise of saving on goods that they really did not need. It just seemed a great bargain at the time…….

Pink Tax is a phenomenon often attributed as a form of gender-based price discrimination, with the name stemming from the observation that there is a broad tendency for products marketed specifically toward women to be more expensive than those marketed for men.(Wikipedia)

In South Africa a survey conducted by Use Your Voice (UYV), compared prices of daily-use items including, razors, creams and clothing and estimated that women pay 18% more for personal care products. This suggests that the “Pink Tax” is alive and well. Women paid more for the following similar products:

Razor blades – R25    T-shirts R20    Vitamins – R16    Deodorant – R10

This raises some interesting questions for discussion over Pink Tax:

Are Women are less price elastic (sensitive to price increases)? An economic principle which relates to consumer behaviour towards price increases. 

Are Women more vulnerable to marketing tactics falling into the trap of… if it costs more it’s better?

Are governments aware of the phenomenon of the Pink Tax as an extra source of revenue? May seem to be a conspiracy, however, there is an extra tax collected from women than men from certain Pink Tax products. 

What women can do is heighten their awareness of the Pink Tax and work on ways to resist it with their purse strings. 

Gold has always been a storage of wealth. The lustre of gold has attracted investors for centuries. Over the best part of the last decade, however, it seems to have lost its shine. Peaking at levels around $1900 a few years ago down to $1100 and back up to R1900 of late leaves a big question, “Will it be the next best investment when investors take flight from the stock markets and look for what has traditionally been their storage of wealth? Some speculative forecasts are pitching $3 000 for an ounce.

Gold does not provide a yield which takes away the power of compounding which the ultimate way forward to growing your investment.

Many Matriculants will be considering loan options for next year to fund their varsity fees. Student loans come with T’s and C’s which you should be very aware of.

Recently I came across a very disillusioned sponsor of a student loan who had been paying interest and service charges for 18 months and the outstanding loan was still the same as the original amount.

The banks cover themselves from left right and centre with this type of loan. Whilst it is the only way many students can afford to pay for their education the loan is loaded in favour of the bank all the way. The risk is all yours.

You take the loan for the duration of your studies and reapply on an annual basis providing the bank with your marks annually when you reapply. You elect a sponsor on the application who commits to paying the interest and service charges from the beginning of the loan until you finish your studies. This means that the original amount of the loan is still owed when you finish.

This is no loss to the bank as the cost of borrowing has been paid.

You will be granted a grace period for capital repayments after you have completed your studies and have not found employment. The grace period may be extended if you have to complete your articles, internship or community service.

The reality for many students is that there is a huge risk of not being able to find employment after completing your studies. The local and global economy is under huge stress and growth is not happening. This translates into rising unemployment which has a large component of youth.

Starting off in your career with a huge high interest-bearing debt is not ideal especially if you cannot find a job to pay it off. The banks have it covered by either you or your sponsor. A huge obligation on you in the face of tough times ahead.