South Africans would rather buy less food than cancel DStv

An Old Mutual study states that consumers are feeling the pinch of South Africa’s bleak economy, but DStv is one of the last expenses they will cut back on.

It surveyed 1,000 working households in various income groups, and found that 33% of high-income earners (R40,000+ a month) are feeling high levels of money-related stress.

Rising inflation and worsening economic conditions have led to a tipping point where even financially-sound households are struggling to make provisions for unexpected expenses.

The suvey results showed that half of South African households would be able to find money to cover R1,000 in unforeseen expenses, while only a quarter could manage R5,000.

The rest would have to turn to debt.

Old Mutual said that irrespective of household income, when it comes to cutting back on spending, “luxury” purchases were typically the first to go.

It found that holidays, eating out, and entertaining friends were the first casualties when it came to making ends meet.

An outlier was that households would rather reign in expenses on groceries or their domestic worker than cut back on their DStv subscription.

The table below indicates the percentage of households that are cutting back on the listed expenses.

Income groups Less than R6,000 R6,000 – R13,999 R14,000 – R19,999 R20,000 – R39,999 R40,000 or more Total
Holiday and travel 95% 94% 96% 83% 76% 88%
Eating out / Entertainment 90% 93% 87% 83% 71% 86%
Entertaining at home 93% 91% 85% 84% 66% 85%
Alcohol 87% 83% 78% 77% 57% 78%
Shoes and clothing 88% 76% 80% 66% 68% 76%
Hair and beauty 71% 71% 68% 59% 49% 65%
Cigarettes 72% 66% 63% 60% 57% 65%
Domestic worker / gardener 85% 79% 58% 43% 61%
Food and groceries 78% 64% 56% 53% 41% 60%
DStv/M-Net subscription 66% 40% 41% 32% 16% 38%
Payments to children / dependents 41% 37% 36% 33% 28% 36%
Electricity / water 37% 37% 34% 33% 27% 34%
Children’s schooling / education 33% 27% 24% 19% 17% 25%

Original article on BusinessTech

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South Africans would rather buy less food than cancel DStv