Revealed: How South Africans are spending their money in 2025

From accommodation to groceries and insurance, a study has revealed what South African consumers are spending their money on outside of debt repayments.

The study from DebtBusters has shone a light on the spending patterns of five income groups of consumers who applied for debt counselling. 

The take-home income groups are:

- under R5,000 a month

- between R5,000 and R10,000

- between R10,000 and R20,000

- between R20,000 and R35,000

- more than R35,000.

According to Benay Sager, executive head of DebtBusters, the study provides insights into how consumers in different income bands prioritise the spending of their income after they pay their debts. 

"For example, there is surprisingly consistent spending across all income groups on transport, utilities, and cellphones, but spend on accommodation differs significantly. Excluding debt repayments, people taking home less than R5,000 spend 9% while those earning between R10, 000 and R20,000 allocate 31% for housing, more than any other income band," Sager said.

Grocery spend also differs with households that have less take-home pay spending a greater proportion on food. The lowest earners spend more than half of their non-debt-repayment disposable income on groceries while the top earners spend just under a quarter (23%).

Insurance spend, including medical aid, is negligible in the two lower income bands, however, it does rise from 1% in the R10,000 to R20,000 band to 13% among the top earners.

Higher electricity costs and food inflation have pushed people in the lowest income band to pool their resources more to cut back on housing expenses, according to the study. 

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Over the past three years, the amount of non-debt-repayment take-home pay these consumers spend on accommodation has dropped, from 20% to 9%.

People that have take-home pat of between R10,000 and R20,000, spend 31% of their take-home pay on housing, an increase of 7% in three years. To make ends meet, they are cutting back on groceries and spending on their children.

Sager says, “Unsurprisingly, but worryingly, spend on retirement is all but non-existent: only the top two income bands allocate some money to retirement savings, which shows that with the recent changes made to the so-called two-pot retirement system, there is much work to be done to educate South Africans about long-term savings.”

The study found that people that are earning R35,000 or more have the highest debt-service burden but they also have more stable budgets with the least fluctuation over the past three years.

South Africa's working class

South Africa’s working class is now the fastest-growing segment in the country, according to a study by the UCT Liberty Institute of Strategic Marketing which was commissioned by Liberty and Standard Bank.

The study revealed that 1.2 million households have joined the working class in the past decade. The working class are households earning between R8,000 and R22,000 per month.

These households represent a quarter of the SA population.

Although some of these households have dual incomes, their earnings remain below R22,000 as low economic growth, high debt, and limited resources hinder upward mobility.

"Formal education has helped many move towards the middle class, but the working class faces a highly unstable journey. Retrenchments, short-term work contracts, or a breadwinner's death can quickly push households back into poverty," said Motlatsi Mkalala, Executive Head of Middle Market, Standard Bank.

Many of these households support extended family and spend more on essentials such as food as inflation remains high.

Commuting is a heavy financial burden, with many spending an average of two hours daily on travel, plus their transport costs have also increased.

To cope, many turn to debt, with only 34% of working-class consumers surveyed saying they feel financially stable, compared to 69% of middle-class earners.

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