Standard Bank data reveals that more than a third of private banking clients do not save enough to build a financial safety net but rather spend their money on takeaways.
These clients typically earn more than R58 000 a month.
Doret Jooste, head of money management and advisory, said more than 45% of the bank’s customers do not have emergency savings, even those with stable incomes, and this has coincided with a growing number of South Africans picking up a habit that could be holding them back – fast food takeout.
She said takeouts have become a regular part of life for many working households as they navigate a busy lifestyle.
Jooste said Standard Bank’s latest analysis, based on transactions at 14 popular fast food franchises, shows that customers spend on average R775 a month on takeaways, and this figure excludes groceries or supermarket meals.
Since most people use more than one bank, she said, actual spending may be even higher.
The highest spending comes from customers in their late 20s to mid-30s. The more they earn, the more they spend, with those earning R60 000 monthly spending over R1 000 on takeouts and up to R1 300 during the holiday season.
“These are often family meals, and this group likely views it as a time-saving trade-off,” Jooste said.
For lower- and middle-income earners, fast food spending hits harder. Those earning under R20 000 spend around R472 per month, while those on R25 000 spend R615.
On average, people earning less than R60 000 spend R748 a month on takeout, which is about 2.5% of their disposable income.
“These groups tend to hold more debt, and frequent low-value purchases can contribute to mid-month cash flow strain. It feels harmless at the time, but the frequency can add up.”
Jooste said takeout spending is often done without much thought – especially when there is no clear budget or plan in place.
She encouraged customers to use banking app tools that track spending habits. She said if these people tightened their belts, not only would their bottom lines thank them but so would their waistlines.
She said if one reduced their monthly takeout spend from R615 to R400, they could save R2 500 a year.
If this amount is invested tax-free at 10% annually, it could possibly grow to over R41 000 in 10 years, close to one year of university fees.
Subscriptions could also be an expense that individuals might consider reducing.
“Low- and middle-income customers spend R336 and R482, respectively, on monthly subscriptions, while private banking clients spend R1 255 on average.
“By halving takeout and subscription spending, customers could free up between R400 and R1 100 a month, enough to start building emergency savings or paying off debt,” Jooste said.
She suggested small changes, such as swapping one Friday takeaway for a home-cooked meal or packing lunch for school or work, to realise these savings.
