The coronavirus pandemic has “significantly or very significantly” affected the family earnings of about three quarters of ordinary South Africans who took part in a snapshot survey.
The vast majority of them can only afford an emergency payment of less than R5 000.
These are just some of the sobering findings in the first edition of a household family finances survey conducted by personal finance website JustMoney.
JustMoney business head Mannie Cristaudo said, “In an effort to understand what our readers have experienced to date during the coronavirus pandemic, we conducted a survey for the month of April.
“Nearly 2 000 readers took part, answering 12 key questions.”
While the larger portion of the group (73 per cent) revealed that their family earnings had been “significantly or very significantly” affected, more than 36 per cent of respondents stated that they would nonetheless not consider a payment holiday on their debt.
However, the second largest group, at just under 27 per cent, said that they were definitely considering this.
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One of the most harrowing statistics indicated that over 77 per cent of participants were worried about their financial situation as a result of the coronavirus pandemic.
Just under 20 per cent admitted to being somewhat concerned, and fewer than six per cent said it did not concern them.
The vast majority of respondents, just under 79 per cent, said that they were only able to afford an emergency payment of less than R5 000.
Fewer than 10 per cent could afford an emergency payment of up to R10 000.
Of the 1 986 participants, over 11 per cent of readers work in retail, nearly nine per cent in government, and just under eight per cent in construction.
However, the majority (43 per cent) selected “other” and many specified that they worked in manufacturing, communications, the informal sector, or were unemployed.
More than 77 per cent of participants categorised themselves as employees, while the rest said that they were self-employed, such as freelance workers or contractors.
Just under half of readers (43 per cent) said they earned under R10 000 each month and barely 10 per cent fell within the top bracket of earning over R40 000 each month.
Considering these income brackets, just over 68 per cent of participants said they would not be able to survive for more than a month on their savings.
Many would struggle to survive a week.
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More than half of the participants (53 per cent) said they create a personal budget every month.
However, nearly 20 per cent admitted to never having drawn up nor relied on a monthly budget.
Approximately 81 per cent of participants were aware of all of the debit orders that came off their accounts, while the remaining participants were unaware of all their monthly debit orders.
In addition, more than 64 per cent of participants regularly reviewed their bank statements.
The survey also revealed that the majority (44 per cent) only occasionally accessed their credit reports.
Interestingly, there was almost an equal split between those who accessed their reports on a monthly basis and those who did not access them at all.
“Despite participants being predominantly employees who earn less than R10 000 each month, it is encouraging to note how many are making an effort to stay on top of their finances despite the extremely challenging times,” said Cristaudo.
“More than half set out a monthly budget and over 80 per cent monitor their monthly debit orders.
“It is also reassuring that less than 30 per cent are considering taking a payment holiday.
“The pandemic is having a harsh impact on many South African households, whose budgets are already stretched to the limit.
“We will continue to conduct research every quarter to show how ordinary South Africans are coping.
“More than ever, it is essential to get to grips with your current financial situation, understand where your money goes, draw up a budget and do your best to avoid debt.”
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