The holiday season is a time for joy, celebration, and togetherness, but it can also come with financial stress. At CedisPay, we believe the holidays should be memorable for the right reasons—not because of overspending. That’s why this November, we’re focusing on Holiday Budget Planning, helping you stay on track financially while fully enjoying the festivities.

Why Plan a Holiday Budget
• Avoid post-holiday financial stress by spending within your means
• Prioritize what matters most—gifts, travel, or celebrations
• Take control of your finances so you can enjoy the holidays guilt-free

How to Prepare for the Holidays Without Breaking the Bank
• Set a Holiday Budget
  • Decide how much you can afford to spend on the holidays without compromising your regular financial goals
  • Break down your budget into categories: gifts, travel, food, decorations, and miscellaneous
• Plan Gift Spending
  • Make a list of people you want to gift and allocate a budget for each
  • Look out for deals or start shopping early to avoid the holiday price surge
  • Consider thoughtful, homemade, or personalized gifts to save money while making a lasting impression
• Strategize for Travel and Festivities
  • Book travel early to get the best deals on flights and accommodations
  • If hosting a celebration, plan meals in advance and stick to your shopping list to avoid overspending
  • Share costs with family and friends by organizing potluck-style gatherings
• Track Your Spending
  • Use tools like the CedisPay Financial Wellbeing App to monitor expenses and stay within your holiday budget
  • Keep all receipts and periodically review how much you’ve spent versus what’s remaining in your budget
• Prepare for Unexpected Costs
  • Set aside a small contingency fund for unplanned expenses like last-minute gifts or emergency travel

Start Planning Today

The holiday season doesn’t have to mean financial stress. With a little planning and discipline, you can celebrate joyfully without overspending. Stay tuned to our social media for daily tips on how to make the most of your holiday budget, and explore more practical financial advice right here in our Financial Literacy and Empowerment section.

Access : Budget Application to make budgeting even easier this festive season

Access the My Financial Wellbeing Budget App to start achieving your financial goals today: My Financial Wellbeing Budget Application

Happy Holidays from all of us at CedisPay! 🎄

Why withdraw from your Tier 3 pension when you can save money with a smarter option? With CedisPay Pension-Backed Loans, you preserve your pension's growth potential and avoid costly tax penalties. Here's how the savings add up.

Scenario Assumptions
• Tier 3 Pension Annual Growth Rate: 21% (based on treasury bills)
• CedisPay Loan Interest Rate: 21.6% per annum (1.8% per month)
• Early Withdrawal Tax Penalty: 15%
• Loan/Withdrawal Amount: GHS 15,000
• Time Period for Analysis: 1 year

Financial Comparison
• If You Withdraw from Tier 3 Pension
  • Tax Penalty: GHS 2,250 (15% of GHS 15,000)
  • Effective Withdrawal Amount: GHS 12,750 (GHS 15,000 - GHS 2,250)
  • Loss of Compounding Interest: GHS 5,400 (GHS 18,150 - GHS 12,750)
• If You Take a CedisPay Pension-Backed Loan
  • Interest Paid: GHS 3,240 (GHS 15,000 x 21.6%)
  • Total Cost of Loan: GHS 18,240 (GHS 15,000 + GHS 3,240)
  • Future Value of Pension Retained: GHS 18,150 (GHS 15,000 x 1.21)

Savings Calculation

1. Savings Due to Avoiding Tax Penalty: GHS 2,250
2. Loss of Future Value Avoided: GHS 5,400
3. Net Loss from Withdrawal: GHS 5,400
4. Net Cost of Loan: GHS 90
5. Total Savings: GHS 5,310 (GHS 5,400 - GHS 90)

Financial Impact Breakdown in tables

1. Withdrawal from Tier 3 Pension

   Item	Calculation	Result
   Tax Penalty	15% of GHS 15,000	GHS 2,250
   Effective Withdrawal Amount	GHS 15,000 - GHS 2,250	GHS 12,750
   Loss of Compounding Interest	GHS 15,000 x 1.21 - GHS 12,750	GHS 5,400

2. CedisPay Pension-Backed Loan

   Item	Calculation	Result
   Interest Paid	GHS 15,000 x 21.6%	GHS 3,240
   Total Cost of Loan	GHS 15,000 + GHS 3,240	GHS 18,240
   Future Value of Pension	GHS 15,000 x 1.21	GHS 18,150

3. Comparison of Outcomes

   Metric	Withdrawal	Loan
   Net Amount Retained	GHS 12,750	GHS 18,150
   Total Cost Incurred	GHS 0	GHS 18,240

4. Savings Calculation

   Item	Amount (GHS)
   Savings from Avoiding Tax Penalty	2,250
   Loss of Future Value Avoided	5,400
   Net Loss from Withdrawal	2,250
   Net Cost of Loan	90
   Total Savings	5,310

Here's a breakdown of the Net Cost of Loan (GHS90)

Explanation
• By taking the pension-backed loan, you pay GHS 18,240 (including interest).
• If you didn’t withdraw your pension, it would grow to GHS 18,150.
• The net cost of the loan is the difference between the total loan cost (GHS 18,240) and the future value of your pension (GHS 18,150), which equals GHS 90
This illustrates the relatively small cost of taking the loan when compared to the future value of the pension you would be giving up.

Savings Calculation

Conclusion

By choosing a CedisPay Pension-Backed Loan over withdrawing from a Tier 3 pension, you save GHS 5,310 in just one year. This approach avoids early withdrawal tax penalties and preserves the compounding future value of your pension.