The festive season is fast approaching and soon every major retail store will be filled with Michael Bublé’s rendition of “I’m dreaming of a white Christmas.”

While the festive season brings much fun and excitement, as a business owner, you’re also facing year end deadlines, clinching last minute order deals, and the responsibility of paying out bonuses. However, January and its inevitable financial crunch lurks in the background of holiday festivities.

As the festive cheer fades and the tinsel and lights are taken down and boxed until next year, many employees find that they’ve overspent and ask for salary advances or take out loans to cover transport, food and electricity costs to make it through the month. Factor in the additional costs of school uniforms and stationery needs, and January quickly becomes overwhelming.

Salary advances or company loans to employees may offer temporary relief, but it is a less-than-ideal way to start the year. Here’s how you can help your low income workers avoid the infamous “Janu-worry” blues.

1. Plan early for festive season spending

Encourage your employees to start saving now for their December and January expenses. Make it relatable for them. Share real-life scenarios you or other employees have dealt with, especially instances where under budgeting and overspending have led to financial stress. By sharing these experiences, you can help your employees learn from others’ mistakes and take proactive steps to avoid them. Explain the benefits of early financial planning for the festive season.

2. Compile a budget

Simply put, a budget is a plan that outlines how to spend your money every month. Help your employees understand the importance of writing down what their income and expenses are to give them a clear picture of where their money is going. This simple step can make a big difference in understanding their financial habits. Furthermore, provide resources and workshops on budgeting techniques, saving strategies, and financial goal setting to help employees gain control over their finances.

<< Download our free SMART budget template to help you save >>

3. Save your bonus

If your employees are eligible for a bonus at the end of the year, take the opportunity to have a conversation with them about the importance of saving it for essential January expenses such as school clothes and stationary or for unexpected expenses in the future. Having money saved in the bank will alleviate any unnecessary stress and pressure and help them carry the holiday cheer into the new year.

4. Help them understand the risks of borrowing money

Microfinance and payday lenders provide small loans, usually without collateral, to low income earners who lack access to traditional banking services to cover emergency expenses. Unfortunately, these loans come at a price and keep employees trapped in a cycle of debt.

Financially literate individuals are less likely to fall victim to predatory lending practices or fraudulent schemes. With the right knowledge, they can start developing better financial habits such as budgeting, saving, and investing for the future.

5. Partner with Picsa to help

By partnering with Picsa, give the gift of knowledge and practical tools to help reshape the financial trajectory of your employees. Picsa offers affordable financial products, practical education, and meaningful rewards, all designed to encourage positive behaviour change and improve the financial health of your low income workforce.