Pandemic has a harsh impact on many households – survey
The coronavirus pandemic has 'significantly or very significantly' affected the family earnings of 73 percent of nearly 2 000 participants in a JustMoney survey.
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 household family finances survey conducted by personal finance website JustMoney.
According to Mannie Cristaudo, JustMoney Business Head, “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.”
He said 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 – such as freelance workers or contractors – said they were self-employed.
Just under half of the readers (43 per cent) said they earned below 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 on their savings for more than a month. Many would struggle to survive a week.
“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,” Mannie added.
“Sound advice that has stood the test of time is to set aside money to cope with unexpected expenses such as a new set of car tyres or a TV; save enough to cover your income for two to three months; then start putting money into retirement annuities and other investment products,” he concluded.
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