Use these useful savings tips this holiday season for clever spending and saving!

1. Draw up a budget

Just as it's a good idea to work from a list when shopping, it's important to take into account all your holiday expenses — from gifts to travel, food and accommodation — and what you can afford, before you spend it.

Although it's tempting to make big plans, you could be in for a nasty shock if you count on your bonus or thirteenth cheque. Remember to include what you'll need to buy before your January paycheck, such as school supplies and groceries.

Budgeting will also help you avoid debit orders bouncing, which result in more bank fees and less money in your pocket.

2. Cash vs debit vs credit

More convenient and safer than carrying cash, a debit card is linked to the available money in your savings account. Because the money is deducted or 'debited' immediately, it offers the benefit of stopping you from spending more than you have.

A debit card allows you to make point-of-sale purchases at retailers and draw money from an ATM or at the pay-point of selected retailers.

In comparison, a credit card allows you to borrow an approved amount of money from a bank. This is useful for big purchases such as a family holiday or buying your girlfriend the beautiful watch she's been eyeing, but the downside is that you're charged interest on the amount you borrow and you often end up paying more.

3. Check your bank statements

Check your bank statements often. Unauthorised charges and reports of lost or stolen cards increase significantly during this time of the year; be sure to check your account and report unrelated transactions immediately to get the issue resolved as quickly as possible. Online banking is the fastest way to review your account.

4. Drawing cash.

The most affordable option is to use your debit card to draw money at selected retailers — with Capitec Bank, this costs only R1 per transaction. But if you have to use an ATM, avoid getting hit with expensive fees by using your own bank whenever possible.

5. Entertaining.

BYO (Bring your own). In tough economic times, pot-luck dinners — where the host asks each guest to bring along an element of the meal — make sense.

Everyone can also bring along what they would like to drink. Besides saving you money, this will give you a real break over the holidays as you won't have to spend as much time shopping and cooking. Even assign someone the job of washing up afterwards so the dishes can be returned to your guests before they leave and save you the hassle.

6. Staying in touch

Don't enter the new year with a sky-high telephone bill. Rather call family and friends with season's greetings using the free minutes on your cellphone package or during landline off-peak times. Some mobile packages offer free weekend minutes (meaning no minutes are deducted from your contract) and free calls when you're dialling a cellphone from the same carrier (free mobile-to-mobile).

For more information on how you can manage your funds according to your needs while earning the best interest on flexible savings, visit www.capitecbank.co.za