SA consumers prioritise lifestyle over essentials

The Citizen

2 days ago

Mzansi's spending habits reveal a nation hooked on status and convenience, even if it means financial strain and mounting debt.
When South Africans go to therapy, it's retail.
There seems to be no end to the lengths anyone will go to in order to wear the right brands, dine at the trendiest spots and keep up appearances, all while quietly cringing when the bills arrive.
Research across several studies suggests that Mzansi has a serious appetite for instant gratification. We are spending big, often prioritising nice-to-haves over essentials.
Household spending hits trillions
In 2022 and 2023, South African households collectively spent a staggering R3 trillion, according to Statistics SA – an average of R143 691 per household.
A significant portion of this, nearly 76%, went on housing, food, transport and insurance. But when it comes to non-essentials, many are splurging on things that could easily be avoided.
Entertainment costs are soaring
According to a 2023 study by the Bureau of Market Research, South Africans spent R176.7 billion on entertainment and media in 2022, with projections to hit R231.2 billion by 2027.
Streaming services like Netflix, Showmax and Amazon Prime are now a staple in most homes, but they come at a steep price.
High-income households, especially men over 40, are reportedly forking out over R1 000 a month for these services according to a Standard Bank published survey in 2023.
Lower income households aren't immune to spending on showbiz either. Monthly costs on television average R336.
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DStv, which has seen its premium package prices rise from R625 in 2013 to over R1 000 now, continues to have a tight grip on consumers.
Despite financial strain, 66% of lower-income households kept their DStv subscriptions, often sacrificing essentials like food or domestic help just to avoid cancellation.
Biltong and big weddings don't come cheap
But what is a rugby game on an expensive subscription service without indulging in over-priced air dried meat.
Biltong prices have surged, according to Reddit users and anecdotal evidence at store level. It shot up by almost 60% in the past eight years to almost R400/kg in some instances.
Some Reddit users have called out biltong for being 'three times the price of meat'.
Wedding season is coming up and here nobody spares expense when it comes to declarations of love.
One Reddit user shared their wedding costs, estimating between R800 and R1 500 per head for a 120-person event, with venue costs alone ranging from R35 000 to R120 000.
Add in food, which can cost R350 to R500 per person, décor and photography, and the total balloons into the price of a small apartment.
Education expenses bite into budgets
Thanks to failing state education, spending on learning has also rocketed. StatsSA noted that education only accounts for 2.45% of total household consumption.
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Yet, in real life, many families are spending far more than this.
One Reddit user said that their family spends R10 000 a month on education-related expenses per child, just for decent schools.
South Africans are big on takeaways and restaurant meals. Stats SA's 2023 report shows that takeaway and restaurant meals account for 3.6% of household expenditure, a higher percentage than some families spend on education.
The rise of food delivery services have fuelled this trend. This is despite the cost of restaurant delivered meals being charged at a premium.
Food delivery, fashion, and debt trap
South Africa's high data costs are infamous and Independent Communications Authority of South Africa research last year showed that households spend between R300 and R900 per month on mobile services.
Fashion eats money, too. Younger people are spending a large chunk of their income, sometimes 12-15%, on clothing, often financed through store accounts or credit.
The need to show off expensive name brands burn wallets. According to BankServAfrica's 2023 survey, car instalments are the second highest debts consumers incur after home loans.
People are overspending because they believe they are buying status. Credit can sink anyone when mismanaged.
According to TransUnion's 2024 Credit Insights report, 41% of active credit users are over-indebted.
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