As South Africa marks National Savings Month, FNB is encouraging consumers to rethink how they approach saving, positioning it not as a luxury, but as a critical investment in their future financial security.
South Africa’s household savings rate remains under strain, with the country recording a negative household savings ratio in recent periods. This suggests that many consumers have limited capacity to build savings and may need to draw on existing reserves or utilise credit to meet ongoing financial obligation.
According to Statistics South Africa’s Income and Expenditure Survey (2022/23) (2022/23), the average South African household earned R204,359 annually, yet spent an average of R143,691 on consumption expenditure, with essentials such as housing, food, transport and financial services accounting for more than 75% of household spending. This concentration of spending highlights the pressure many households face when trying to set aside money for savings and future financial goals.
FNB data indicates a continued deterioration in net savings behaviour, with the ratio of deposits to withdrawals declining by approximately 37% year-on-year, highlighting the growing strain on household finances.
Despite these pressures, saving—no matter how small remains one of the most important financial habits consumers can build.
“At a time when consumers are under pressure, saving can often feel like something you do if there’s money left over. In reality, it should be treated as a priority just like any other essential expense,” says Ilse Smuts, Business Development Head at FNB Cash Investments
Reframing saving: from sacrifice to self-investment
For many consumers, saving is often viewed as restrictive. However, FNB’s #PayYourselfFirst approach aims to shift this mindset, encouraging individuals to treat saving as a non-negotiable financial priority.
“Saving is not about what’s left at the end of the month, it’s about what you prioritise at the beginning,” adds Smuts “Even small, consistent contributions can have a meaningful impact over time.”
What ‘paying yourself first’ looks like in practice
Building a sustainable savings habit does not require large sums, but rather consistency and structure. Practical steps include:
- Automating savings: Transfer a portion of income into savings as soon as it is received
- Using structured tools: Make use of Tax-Free Savings Accounts (TFSAs) to maximise long-term growth
- Separating savings from spend: Keep savings in dedicated accounts
- Building an emergency buffer: Prioritise short-term savings for unexpected expenses
Balancing short-term pressure with long-term resilience
While it is understandable that households may need to access savings during difficult times, doing so consistently can weaken long-term financial resilience.
Beyond immediate financial pressures, saving also plays a critical role in longer-term financial planning.
While saving helps households manage today’s pressures, it also forms the foundation of long-term financial planning, supporting individuals in protecting their assets, providing for loved ones, and ensuring financial continuity. An important part of this planning is having a valid and up-to-date Will in place to ensure savings and other assets are distributed according to one’s wishes.
“Many people focus on building wealth during their lifetime but overlook what happens to those assets after they pass away. Having a valid Will in place helps ensure your savings are transferred to your intended beneficiaries and can reduce unnecessary delays and complications for loved ones,.” says Carin Meyer, Product Head Wills and Deceased Banking at FNB Fiduciary.
The role of accessible, flexible savings solutions
In this context, accessible cash-based investment solutions play an important role, offering a balance between capital preservation and liquidity.
The ability to save, access, and rebuild funds efficiently is key to supporting both immediate financial stability and long-term outcomes.
As South Africa reflects on National Savings Month, the message is clear: building a savings habit no matter how small is one of the most powerful steps consumers can take towards financial security and independence.
“By paying yourself first, you are not just saving you are investing in your future freedom,” concludes Smuts
