This graph shows how we spend our money each month in South Africa

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.

Household expenditure

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.

More on South Africa

How South Africans generate an income

How South Africa’s rich spend their money vs the poor

How South Africans save money each month

Latest news

Partner Content

Show comments

Follow us

Recommended

This graph shows how we spend our money each month in South Africa