Consumers are spending a large part of income on food, transport
The data collected is based on point of sale transactions at various retailers and sheds some light on consumer spending patterns.
Food and transport tops the list of items that consumers spend their money on.
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This is according to FNB data that focused on the spending patterns of FNB Gold account holders who earn a gross income of between R7 000 and R25 000 a month, the data was collected from May to October 2017.
The data collected is based on point of sale transactions at various retailers and sheds some light on consumer spending patterns.
Of their total spend, Gold account holders dedicate about 28 percent to food and beverages; up to 13 percent goes to transportation, meaning these consumers will be relatively more affected by fuel increases and rising fares.
Khathu Ramoliko, Head of FNB Gold Sub-Segment, says:
Unsurprisingly, food constitutes the biggest expenditure for most consumers, which 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 but the strengthening of the Rand could ease the pressure on consumers.
FNB says consumers are also spending a notable amount of money on airtime and data, and while the average amount spent on airtime and data may seem small at about R262 per Gold customer, the frequency of purchases suggests that consumers spend on impulse as opposed to using properly structured telco packages which could help them.
“The use of the right telco package can be handy for people who struggle to manage their airtime and data spend. This is one of the reasons we offer customers the flexibility of managing both their banking and telco via our App,” adds Ramoliko.
“As the new year begins, we encourage consumers to start the year right by setting realistic financial goals, budget property and spending wisely. Getting on track financially is achievable, and small determined actions will get you the results you want,” adds Ramoliko.
Issued by FNB Corporate Communications
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