A growing number of middle-class South African households are discovering that their biggest financial threat isn’t load shedding, high inflation, or rising food prices, but their silent spending habits.

A recent audit of diverse households has revealed how small, recurring expenses like app subscriptions, impulse buys, and overlooked bank fees are collectively costing families thousands of rands each year.

Experts warn that many of these hidden drains are going unnoticed due to the “set and forget” nature of modern consumer habits, especially with the increasing use of digital payment systems and auto-renewing services.

Take the case of a young couple living in Cape Town. Without realising it, they were spending more than R450 each month on digital subscriptions, most of which they rarely used.

“It was shocking to see how many platforms we were paying for,” they said.

“We had Netflix, Apple Music, two meditation apps, and backup storage services we hadn’t looked at in months.”

Once they reviewed their bank statements and cancelled unnecessary services, they saved close to R4,000 over the course of the year. But streaming services weren’t the only culprit.

“We found we were spending over R2,000 a month on coffee and lunch runs,” they said.

“It doesn’t feel like a lot when it’s R50 here or R80 there, but when you add it up, it’s ridiculous.”

A high school teacher said impulse grocery trips and unplanned takeaways had become a coping mechanism for her family.

“We’d get home tired and just order food or pop into the store without a list. We were often over budget without understanding why.”

The family was exceeding their monthly food budget by more than R1,100 on average.

Recurring bank fees and overdraft penalties were quietly eroding their disposable income.

“We switched banks, set app alerts, and created a budget for once-off annual costs like school uniforms and birthdays. That alone gave us breathing room,” she explained.

One of the biggest revelations to emerge comes from Bank Zero CEO Yatin Narsai, who raised concerns about how South Africans are being charged “international payment” fees for rand-priced subscription services like Netflix, Spotify, YouTube, Apple TV+, and Amazon Prime.

Narsai said that while these services appear to be billed in rands, many South African banks charge a cross-border transaction fee, ranging between 2% and 2.75% of the transaction value, or a fixed fee of R3.00 in the case of banks like Capitec and TymeBank.

“Bank Zero still follows the principle of not charging fees wherever possible,” Narsai said.

“Only if a third party charges us a big fee, like for cash or immediate payments, are we forced to also charge a fee to the customer.”

“No such large extra fees exist specifically on cross-border rand-based card transactions,” he added.

The implication? Banks may be profiting from fees that don’t reflect actual processing costs. And for many middle-class families who maintain multiple international subscriptions, these seemingly minor charges can quietly erode their disposable income.

A 2024 study by the South African Savings Institute found that 62% of middle-income earners struggle to save consistently, with the majority citing “unexpected” or “forgotten” costs as a key obstacle.

Yet most of these expenses, according to the data, could be identified and reduced through regular financial audits.

Digital tools are increasingly stepping in to assist. Budgeting apps like 22seven, YNAB, and bank-integrated platforms such as FNB’s Smart Budget tool offer real-time expense categorisation and alerts.

These platforms can also highlight unused subscriptions, spikes in discretionary spending, or unusual bank charges.

For some households, switching to cash-only weeks or setting limits on contactless transactions helped curb their spending impulses. Others set up “future expense” savings pots, monthly amounts reserved for school fees, birthdays, or holiday costs, to avoid surprises later in the year.

What should South Africans do now?

Financial advisors recommend:

• Quarterly financial audits, carefully review bank and card statements.
• Switching accounts, look for banks or digital wallets with flat-fee or no-fee structures, especially on international payments.
• Cancel or reduce subscriptions and opt for annual plans where cheaper.
• Track small spending, daily coffee, snacks, or impulse buys add up fast.

While headline costs grab attention, it’s the compact, often-overlooked drains, card fees, cash handling, and subscription costs, that quietly erode personal and business wealth.

IOL News

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