The rising cost of living remains a significant concern for South Africa’s population of over 61 million. Governor Lesetja Kganyago has confirmed that the inflation rate is expected to stay high but may see a slight decrease by 2025/26. Unfortunately, large families & lower-income households are the most impacted by these economic challenges.

Concerning Economical Conditions

Rising inflation not only affects the overall cost of living but also has a significant impact on fuel, rent, travel, and electricity. Recently, the Energy Department has announced hikes in electricity tariffs and fuel prices. Furthermore, as the cost of food continues to rise, it will put additional strain on low-income families, leading to difficult budget decisions. This may result in having to cut back on purchasing non-essential items, including luxury goods, which could impact overall hygiene practices.

Living On Minimum Wage

The minimum wage for an average family is estimated to be around R4000 per month. Travel costs can amount to around R1600 monthly while electricity expenses for a family of four can surpass R900. As electricity prices are expected to rise in June this cost is likely to increase as well. Given the challenges families face in making ends meet, many breadwinners resort to using credit cards and taking on debt to support their income and provide for their families throughout the month.

Below is a diagram from The Outlier showcasing the minimum wages of an average SA citizen:

Grocery costs often force families to prioritize necessities over nutrition due to low wages. This trade-off can negatively impact children’s health, leading to issues like lack of focus and weakened immune systems. We need to ensure that children receive adequate nutrition to support their growing bodies and overall well-being despite the economy’s shaky reputation.

Complex Environmental And Socioeconomic Landscape

As per the Pietermaritzburg Economic Justice and Dignity Group report in South Africa, one wage typically supports 3.8 people within a family of 4. With each person receiving only R1048.04, which falls below the poverty line of R1558 per person per month, families may resort to taking out payday loans to bridge the financial gap. The high unemployment rates add further pressure on breadwinners, leaving them with limited disposable income. Additionally, PMBEJD notes households living on low incomes are changing their purchasing patterns in response to changes in affordability conditions.

It is important to highlight that consumers tend to purchase more long-lasting staple foods to sustain their families for a full month and ensure no one goes hungry. When facing financial constraints, families may choose to remove certain items from their shopping carts or opt for less nutritionally dense foods. As economic conditions deteriorate for consumers, it can have a direct impact on household health and nutrition.

The table below shows the Basic Nutritional Food Index

The Source: PMBEJD

These Changes Affect All South Africans And Their Significance Cannot Be Overlooked

Consumers should find new ways to manage their finances effectively. For example, shopping at discount stores, turning off unnecessary plugs and lights and using less water at home. The current reality suggests that conditions may not improve soon especially with upcoming elections possibly exacerbating the situation. Despite these challenges, households can experiment with different approaches to address these difficult living conditions.

Here are some steps to take in order to effectively manage your wages;

1. 50/30/20 budget rule
2. Using loyalty points when doing groceries
3. Buying in bulk saves time and money by reducing trips to the store and transportation costs.
4. Check out the local fruit and vegetable markets in your area as they often offer affordable prices.
5. Make sure to switch off any devices that consume a higher amount of electricity. 
6. Ensure you eliminate payday loans and effectively manage your debt so you can free up funds for meaningful purposes.

Despite the ongoing challenges there is hope for economic recovery in the future. Safeguard finances and spending to save enough during times of uncertainty.