Food, transport the big expenses

Food and transport top the list of items consumers spend their money on.

This is according to data on the spending patterns of consumers who earn a gross income of between R7 000 and R25 000 per month.

The data, collected from May to October 2017, was based on pointof-sale transactions at various retailers and shed some light on consumer spending patterns.

Of their total spend, consumers dedicated about 28% to food and beverages; up to 13% goes to transportation, meaning these consumers would be relatively more affected by fuel increases and rising fares.

“Unsurprisingly, food constitute the biggest expenditure for most consumers,” said FNB Gold head Khathu Ramoliko.

“This means after spending on food, whatever is left is spread across other essentials such as healthcare (1.86%) and clothing (8.10%).”

“While the price of petrol has gone down, expenditure on transport is likely to remain one of the biggest expenses for households,” said Ramoliko.

Consumers were also spending a notable amount of money on airtime and data.

While the average amount spent on airtime and data seemed small at about R262 per consumer, the frequency of purchases suggested that consumers spend on impulse.

“As the new year begins, we encourage consumers to start the year right by setting realistic financial goals, budget properly and spending wisely,” said Ramoliko. “Getting on track financially is achievable.”

While the price of petrol has gone down, expenditure on transport is likely to remain one of the biggest expenses for households.

Khathu Ramoliko FNB Gold head