Soaring subscription bills may indicate subscription fatigue in SA households
Wi-Fi and data have become everyday essentials in many South African households, providing connectivity to the world through entertainment, social media, and global news. For many, these offer relief from daily stress – but they’ve also fuelled a surge in household subscription costs. Standard Bank data shows subscription spending has risen sharply, eating into disposable income.
Standard Bank data shows subscription spending has risen sharply, eating into disposable income.
“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,” says Standard Bank’s Head of Money Management and Advisory, Doret Jooste.Houills vary widely depending on income, but many high-income individuals spend well over R1,000 per month. On average, low-income households spend R336 per month on subscriptions, middle-income earners R482.
High-income men over 40 spend the most. But even their female counterparts are forking out over a thousand rand every month on streaming, health and fitness, and digital services.
In es, driving up costs. In contrast, among lower-income segments, clients over 60 show less engagement with subscriptions.
“Subscription fatigue is real. Many add more subscriptions without regularly reviewing their needs,” Jooste warns.
The financial impact is especially severe for low-income households due to their income levels. Multi-banked customers and retail-based subscriptions may mean actual spending is even higher than reported.
“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,” Jooste explains.
Popular Subscription Services
Streaming and entertainment take up the largest share of household subscription spending, followed by health and fitness and then software and digital services. High-income earners are especially inclined toward premium digital subscriptions, including fintech services, and advanced software.
Streaming and entertainment also dominates among middle- and lower-income consumers, making up over 68% of all subscriptions. Health & fitness as well as software & digital services subscriptions are steadily growing.
Impact of Redirecting Subscriptions Spending
Based on average monthly subscription bills, here’s how long it would take different households to save up one month’s income and build three-month emergency savings by redirecting monthly subscription expenditure:
| Customer Segment | Monthly Subscriptions | One month's income | 3-Month's Emergency Fund |
|---|---|---|---|
| Low income | R336 | 4.2 years | 12.6 years |
| Middle income | R482 | 3.5 years | 10.5 years |
| Private Banking | R1, 255 | 2.9 years | 8.7 years |
*The calculations above assume a 7% annual return compounded monthly.
Jooste suggests these additional proactive steps:
- Review your subscriptions: Regularly assess which services you need and cancel the rest.
- Negotiate or bundle: Negotiate or seek bundle deals to lower costs.
- Use budgeting tools: Apps that track recurring expenses, like Standard Bank’s Money Manager, can help you identify areas where you can cut back.
- Automate savings: Set up automatic transfers to your savings when you get a salary increase or additional income.
- Talk to an adviser: If you’re unsure how to adjust your spending, speaking to a financial planner can help you build a realistic, personalised financial plan.
“By taking these steps, you can cut unnecessary expenses and boost your financial resilience,” says Jooste. She notes that data shows financial strength stems more from disciplined saving than high incomes.