Standard Bank’s head of money management and advisory, Doret Jooste, has warned of a developing trend of subscription fatigue as digital subscription costs are on a steady rise.
She explained that this places growing pressure on household budgets. From streaming platforms to fitness apps and digital services, subscriptions have become part of daily life for many South Africans.
“We all deserve to spend a portion of our incomes on things that bring joy and comfort but as incomes rise, so do expenses, often unconsciously. This lifestyle inflation, including growing subscription costs, can shrink disposable income and delay emergency savings,” said Jooste.
Jooste said people often add new subscriptions without thinking about whether they still use or need older ones. As a result, households are paying for more services than they use.
She explained that the unchecked growth in monthly spending is a sign of “subscription fatigue”.
According to Standard Bank’s latest analysis, the average low-income household is spending R336 a month on subscriptions, while middle-income earners are spending around R482. Among higher-income households, monthly subscription costs can climb beyond R1 000, with some clients spending as much as R1 225.
Jooste also highlighted that high-income men over 40 years old are the biggest spenders, although women in the same income group also spend more than R1 000 a month on entertainment, health, fitness and digital services.
Subscription spending tends to be higher among men than women in the middle to upper-income brackets. Older customers are also more likely to commit to premium or long-term services. However, in lower-income households, individuals over 60 tend to show less interest in subscriptions.
She noted that the real impact on finances may be even higher than what the data shows, as many people use more than one bank or pay subscriptions through retail outlets.
“When factoring multi-banked customers, and transactions not captured by banks for customers paying at retail outlets, the financial impact could be much larger than what we see,” said Jooste.
Streaming and entertainment services account for 68% of subscriptions across all income levels. Among middle- and lower-income households, more than two-thirds of subscription spending goes towards entertainment platforms.
Spending on health, fitness, and digital services, including fintech and advanced software tools, is also growing steadily.
Jooste said the consequences of unchecked subscription spending become even clearer when considering what households could achieve by redirecting that money into savings.
Standard Bank estimates that low-income households would need more than four years of redirecting their monthly subscription spending to save up one month’s worth of income.
To build a three-month emergency fund, it would take over 12 years. Middle-income earners would need around three and a half years to save one month’s income and over 10 years for a three-month buffer. Even for private banking clients spending R1 255 per month, it would still take nearly three years to save up one month’s income and close to nine years for a proper emergency fund. This is assuming the savings earn a 7% annual return compounded monthly.
Jooste emphasised that building financial resilience requires more than just a good salary.
She said it demands smart and disciplined savings. “By taking these steps, you can cut unnecessary expenses and boost your financial resilience,” says Jooste.
She said consumers should regularly review their subscriptions, look for bundling deals, make use of budgeting tools such as Standard Bank’s Money Manager, and speak to financial planners to create a strategy that suits their goals.
