South Africans are cutting spending on entertainment, subscriptions, and shopping to manage household budgets. Picture Credit: Craver
By Aisha Zardad
South Africa – Despite some easing in household spending pressures towards the end of 2025, many South Africans are still cutting back to make ends meet — with entertainment and shopping being the first to go.
According to the Old Mutual Savings and Investment Monitor (OMSIM) 2025, job security remains the top concern for households, a trend that has persisted since the COVID-19 pandemic disrupted the economy in 2020/21. Worries are particularly pronounced among those earning R8,000 to R15,000 per month and aged 18 to 29, reflecting the financial pressures on younger earners starting their careers. Overall, 60% of households report ongoing financial stress.
Other key priorities for households include cutting expenses (48%) and paying off debt (48%), while just over a third focus on building emergency savings or investing for the future. Notably, cutting expenses slightly edges out debt repayment as the second-biggest priority, particularly for households earning between R8,000 and R30,000.
Old Mutual highlighted that younger earners are less concerned about cutting costs or paying off debt. Instead, they focus more on savings, investments, and supporting family financially, as many are less burdened by large debts or mortgage payments.
While cost-cutting remains a top priority, the report shows a slight easing in household belt-tightening. Many South Africans are returning to name brands after previously switching aggressively to cheaper alternatives. Retailers have noticed this trend, with shoppers increasingly opting for familiar brands over house brands.
The most common ways households save money include:
| Expense-Cutting Tactic | 2024 | 2025 |
|---|---|---|
| Switch to cheaper streaming | 32% | 29% |
| Switch to cheaper supermarket brands | 30% | 25% |
| Reduce domestic help | 29% | 24% |
| Reduce cellphone/data spend | 27% | 23% |
| Cut gym subscriptions | 26% | 22% |
| Postpone major purchases | 22% | 18% |
| Maintain rather than replace big items | 22% | 18% |
| Downgrade rented property | 14% | – |
| Move children to cheaper school | 13% | 11% |
| Switch or trade down vehicle | 12% | 11% |
Rewards programmes have become critical budget tools. OMSIM 2025 reports that 67% of households save money using rewards, with 39% saying rewards are essential to their monthly budgets. Rewards schemes are particularly important for lower- to middle-income households earning R8,000–R30,000, as well as younger earners, while higher-income households and older age groups rely less on them.
Old Mutual concludes that while South Africans are still cautious with spending, the financial outlook is improving, with fewer drastic cuts and a more strategic approach to savings and rewards.
