The CEO of FNB Retail, Raj Makanjee, explained that a middle-income salary - ranging between R7,000 and R60,000 per month - simply isn't enough to last for the entire month. He told Business Tech:
These consumers tend to struggle with money management, with the shortfall leading to sacrifices in important areas such as having back up or emergency saving that can be used to pay for unforeseen expenses. High spending and limited savings cause consumers to rely on credit to get through the month, making them more vulnerable to be caught in a debt trap.
Where does the money go? The data showed approximately 40% of consumers spend more than 50% of their salary on debt repayments. Christoph Nieuwoudt, CEO of FNB Consumer, said that microlender loans and store cards take the blame for this, and added that FNB considers these figures to be very high.
In addition to that, about half of the consumers surveyed also miss at least one debit order during the year due to the financial pressure they find themselves under.
According to a survey published by Standard Bank in 2015, approximately 29% of middle-class salaries went to contribution of medical aid, insurances and pension funds, followed by 20% for food, beverages and tobacco. The third largest expense was transport-related costs, at 15%.
Up to 60% of household spending was on essential items, and Standard Bank also found that 59% of expenditure by low-income households went towards non-durable goods and food, making these households more susceptible to food inflation.
Image credit: Pixabay Also read: What is the average take-home salary in South Africa?
Ways to save money In light of the data collected by FNB, the bank urged members to maximise programs such as eBuck Rewards and Bank Your Change to increase their savings power, and to ensure that the correct credit card is used for purchases:
Relatively cheaper credit such as an overdraft or a credit card is useful for short-term purchases while a personal loan may be adequate for home renovations which can generate future value.
Additionally, consumers can schedule an automatic transfer to a cash investment account. Saving money for a rainy day usually falls by the wayside if not planned in advance, simply because it's so easy to use the money set aside for savings for other purposes. Having a scheduled transfer set up in advance removes the temptation of spending the money.
Also Read: Difficult times are still ahead of South Africa - Dawie Roodt suggests investing offshore
Tags: BankingSouth Africa
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
04/08/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
04/07/2026
April 7 2026, 19:00 (PDT) Detective Conan: Fallen Angel of the Highway Opens in...
01/06/2026
January 6 2026, 05:30 (PST) Dolby Sets the New Standard for Premium Entertainment at CES 2026
Throughout the week, Dolby brings to life the latest innovatio...
19/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
19/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
19/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
19/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
19/05/2026
LYNX Technik, provider of modular signal processing solutions for broadcast, post, and professional AV will showcase its latest signal processing solutions at B...
19/05/2026
Media Links, a leading developer and manufacturer of IP media transport solutions, has announced the integration of its Xscend platform with Skyline Communicat...
19/05/2026
Collaboration expands regional partner ecosystem as Media Links showcases IP media transport solutions on stand 4M4-4 and alongside Clearcast Asia on stand
Me...
19/05/2026
Company Highlights Labor-Saving Control and Custom Branding Opportunities Designed to Increase Integrator Profitability
LynTec, a leading manufacturer of ele...
19/05/2026
Mago Studio Moves AI Video Beyond Prompts with New Production-Focused Tools
Brie Clayton May 18, 2026
0 Comments
New Capabilities Bring Controllable, ...
19/05/2026
It May be Time to Stop and Take an AI Breather
Brie Clayton May 19, 2026
0 Comments
If the rock you stay on starts to roll, jump clean. Or you'll...
18/05/2026
Despite a bumpy start to the year, the provider of event-production support and ...
18/05/2026
Daktronics has partnered with the University of North Carolina to manufacture and install 11 LED displays totaling more than 10,000 square feet and more than 14...
18/05/2026
CBS LA has announced a multi-year partnership with the Los Angeles Rams, covering exclusive local broadcasts of Rams preseason games, weekly year-round programm...
18/05/2026
Skyline Communications has announced an integration between its DataMiner xOps p...
18/05/2026
eCLUTCH, the hybrid esports platform powered by iKOMG, has announced an expansion of its distribution across Europe, MENA, Africa, and Asia, along with new cont...
18/05/2026
Behind The Mic provides a roundup of recent news regarding on-air talent, includ...
18/05/2026
With 22 games this season, the production team looks forward to tweaking and enhancing the coverage
After 8,660 days off the air, the WNBA returned to NBC yest...
18/05/2026
(L-R) Midori Francis and Natalie Erika James attend the Saccharine premiere during the 2026 Sundance Film Festival at The Ray Theatre on January 22, 2026, in ...
18/05/2026
Last night, the Spotify Podcast Awards in Mexico returned to the country's capital. Now in its second year, the evening honors creators whose voices are hel...
18/05/2026
ZEN-Core synth goes mobile
Roland's powerful ZEN-Core software synthesizer has just been introduced to the iPad, offering a convenient entry point into ...
18/05/2026
Versatile new limiter plug-in announced
Based in Sheffield, UK, fedDSP offer a range of plug-ins that span the music production, live sound and high-end med...
18/05/2026
A new use for convolution?
Viiri Audio's debut plug-in aims to do something a little different with convolution processing, allowing users to adjust all...
18/05/2026
Delta Goodrem shines for SBS as more than 3.27 million Australians tune in for E...
18/05/2026
The Australian Defence Force uses L3Harris T4 and T7 robots for explosive ordnan...
18/05/2026
Continued investment across Europe and Germany is expanding local teams and improving access to stock, regional expertise, and specialist broadcast support.
CV...
18/05/2026
Agentic AI inference at one-tenth the cost per token with NVIDIA Vera Rubin NVL7...
18/05/2026
18 May 2026
Dubai and New York, May 18, 2026 - VEON Ltd. (NASDAQ: VEON), a glob...
18/05/2026
Monday 18 May 2026
Sky News offers ad-free podcasts and bonus episodes for just...
18/05/2026
Comscore March 2026 Consumer AI Chatbot Usage Rankings Show Claude Gaining Share OpenAI's ChatGPT maintains lead while Anthropic's Claude continues to c...
17/05/2026
Delta Goodrem's Eurovision Eclipse marks end of a stellar run
17 May, 2026
Media releases
Bulgaria wins Eurovision 2026
Relive every spellbinding mome...
17/05/2026
Back to All News
Oasis Premieres on Netflix June 19
Entertainment
17 May 2026
GlobalSpain
Link copied to clipboard
Summer, sunshine, the beach, parties. T...
16/05/2026
Helps to deliver a clean, balanced midrange
Developed alongside Newfangled Audio, the latest plug-in in Eventide's software collection has been designed...
16/05/2026
Brings onboard stem rendering to RANE System One
Engine DJ have just released Engine DJ 5.0, a free update for their Engine DJ OS embedded hardware and Engi...
16/05/2026
Boris FX Continuum Pairs AI Precision and Advanced Creative Controls
Jessie Electa Petrov May 16, 2026
0 Comments
The 2026.5 release adds automatic de...
16/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
16/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
16/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
16/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
15/05/2026
Seattle Sounders FC and Seattle Reign FC, in partnership with RAVE Foundation an...
15/05/2026
Dan Brumm has served as sound designer on Bluey, the Australian children's t...
15/05/2026
The Professional Audio Manufacturers Alliance (PAMA) and Shure Incorporated are accepting applications for the 6th annual Mark Brunner Professional Audio Schola...
15/05/2026
Netflix has announced an expanded NFL schedule for 2026 and beyond under a four-year partnership extension with the NFL through the 2029-30 season. Each season,...
15/05/2026
Ateme is supporting TVRI (Televisi Republik Indonesia) with a contribution and d...
15/05/2026
Concacaf has announced the launch of a new website and mobile app built on Deltatre's FORGE platform. Concacaf.com and the mobile app, available on iOS and ...
15/05/2026
Eutelsat has announced the launch of QBC Business Economic Channel by Qatar Media Corporation, broadcasting in 4K/UHD via Eutelsat's 7/8 West video neighbo...
The CEO of FNB Retail, Raj Makanjee, explained that a middle-income salary - ranging between R7,000 and R60,000 per month - simply isn't enough to last for the entire month. He told Business Tech: 
