Skip to main content

How South Africans spend their money each month in South Africa

| Economic factors

A new report by Standard Bank reveals the monthly spending habits of households in South Africa. The bank notes that 62.3% of households fall within the poorest income bracket – below R86,000 per annum, while middle income groups (R86,001- R1.48 million per annum) comprise a combined 26.4% of South African households.

The wealthiest households in South Africa only account for 1.2% (R1.48 million – R2.36 million+ per annum).

According to Standard Bank, the largest components of household expenditure are food, beverages and tobacco (20%) and contributions, which refers to instalment type payments and includes medical aid, insurance and pension fund contributions (29%).

Transport comprises 15% of aggregate household expenditure. This includes petrol and purchases of new vehicles.

Health accounts for 6% and housing, electricity, gas and fuels for 5% of aggregate household spending.

Education is only 3% of spending. This includes primary, secondary and tertiary education.

Up to 60% of household spending is on essential items and 40% on non-essential items.

The bank found that 59% of expenditure by low income households is on non-durable goods, primarily food, making these households more susceptible to food inflation.

It said that 8.8% of spending is on semi-durable goods and only 3.5% of low income household expenditure is on durable goods.

Between 22% and 40% of spending by middle income households is on non-durable goods and 5% and 10% on durable goods, while 15-23% of spending by high income households is on durable goods, making these households more sensitive to currency weakness and interest rate hikes.

Spending on services tends to comprise a similar percentage of each household budget i.e. between 25% and 33% of household spending.

Pin It

Related Articles

Petrol price earmarked for another hike in May

By: Siphelele Dludla – IOL Business Report THE Automobile Association (AA) has warned of another petrol price hike in May that will push the cost of living even higher for financially-constrained consumers, as inflation also remained sticky above...

Petrol price hike on Wednesday, but some diesel...

By: News24   Petrol will be hiked on Wednesday (03/04/2024), while wholesale diesel prices are mixed.  

SPAR shares tips on how to lighten the financia...

For many, Easter is a time of celebration and tradition, marked by gatherings with loved ones and delicious meals. However, the financial strain brought on by the increased cost of living may require families to adjust their usual celebrations, wh...

Reprieve for consumers at till as prices tick m...

By: Given Majola - IOL Business Consumers got a reprieve at the till this month as the cost of the average household food basket showed a marginal increase.

SA consumers feel the big squeeze: 99% have cha...

According to NIQ, 44% of South African consumers feel they are in a worse financial position this year compared to a year ago.