South Africa’s middle-income consumers spend up to 80% of their monthly salary in just five days, FNB revealed on Tuesday.
FNB – a division of FirstRand – said this data suggests that the average middle-income consumer, who earns between R180 000 and R500 000 a year, survives on 20% of their monthly salary for more than 20 days in a month.
In addition, salaried middle-income consumers with secured and unsecured credit spend, on average, 30% of their income on unsecured credit and 35% on secured credit.
CEO Raj Makanjee FNB Retail said this type of spending patterns indicate that the average consumer is stretched financially.
“The trend also points to a continued culture of consumption,” he said adding, “leaving consumers with little to start saving and investing for financial independence.
CEO of FNB Money Management Senzo Nsibande said: “We’ve observed that retail customers who use nav» Money on the FNB App are more likely to improve their credit, honour debit orders, and begin or increase their savings on hand.
“This is very encouraging because it demonstrates the potential of our tools in assisting customers manage their financial responsibilities.
“By evaluating all aspects of their finances, consumers can stretch every rand beyond its potential.
“This may allow them to begin accumulating cash savings for emergencies and better plan for lifelong decisions such as a comfortable retirement.”
