- Siphamandla Mkhwanazi, FNB Senior Economist
Inflation is not just affecting household budgets, it’s also reshaping how consumers think, plan and make financial decisions. Financial pressure for South Africans is increasingly defined by persistence rather than crisis. Consumers are adjusting continuously to higher transport costs, rising electricity tariffs, growing debt pressure and the rising cost of everyday essentials.
Even financially engaged households who budget carefully, track expenses and prioritise saving, are finding it harder to feel financially secure. This matters because financial wellbeing is not determined only by income or access to financial services. It is also shaped by confidence: the ability to make clear, rational and future-focused decisions.
“Persistent inflation is eroding not just disposable income, but also the sense of financial stability that households rely on to make long-term decisions. What we are seeing is a shift from crisis management to continuous adjustment with households recalibrating more frequently, which fundamentally reshapes how they view risk, savings and investment,” says Siphamandla Mkhwanazi, FNB Senior Economist.
Statistics South Africa’s latest data shows that headline inflation accelerated to 4.5% year-on-year in May 2026, up from 4.0% in April, reflecting mounting price pressures across key household expenditure categories. Rising fuel costs, electricity tariff increases of around 9%, and broader supply-side pressures continue to weigh on consumers. For many households, the challenge is not a single financial shock, but a series of recurring cost increases that require ongoing adjustments to spending, saving and investment decisions.
This prolonged pressure is beginning to shape financial behaviour in important ways. Long-term goals such as home ownership, retirement planning and investment often feel less urgent than immediate stability. Consumers become more cautious, more reactive and, in some cases, more vulnerable to poor financial decisions driven by stress or uncertainty.
South Africa has made significant progress in expanding access to formal financial services, but access alone does not automatically translate into financial confidence. National financial literacy levels remain at around 53%, highlighting the gap between having financial products and feeling equipped to navigate increasingly complex financial environments.
Importantly, this shift is increasingly recognised across the sector. South Africa’s Draft National Consumer Financial Education Policy (2026) acknowledges that financial behaviour is not shaped by knowledge alone, but also by economic stress, income instability and digital risk. This perspective matters because it moves the conversation beyond blame and toward resilience.
Digitalisation has further intensified this risky environment. Consumers can access credit instantly, invest within minutes, and encounter financial opinions continuously through social media platforms. At the same time, scams and misleading financial promises have become more sophisticated and emotionally targeted. Furthermore, cyber threats are rising across the globe with the proliferation of Artificial Intelligence.
An SMS advertising “instant approval” loans or a viral video promising unrealistic investment returns is not simply information, it is a test of judgement when under pressure. Financial literacy today therefore extends beyond mathematics or budgeting principles. It increasingly depends on the ability to pause, assess risk, verify information and make decisions calmly in high-pressure environments.
At FNB, we are seeing this shift reflected in the kinds of questions consumers are asking:
- How do I build an emergency buffer while managing debt?
- How do I protect my family if my income changes unexpectedly?
- How do I avoid increasingly convincing scams and financial fraud?
These are not optimisation questions. They are resilience questions.
- Ester Ochse, Product Head of Integrated Advice at FNB.
“Consumers are asking us less about maximising returns and more about protecting themselves against uncertainty,” says Ester Ochse, Product Head of Integrated Advice at FNB. “The demand is for tools that simplify decisions and create confidence, not complexity.”
At the same time, consumers continue to gravitate toward systems that create accountability, trust and consistency. Stokvels remain some of the clearest examples of this. Despite sustained household pressure, FNB stokvel deposits increased by 26% year-on-year to R7.49 billion between June 2025 and May 2026, up from R5.93 billion in the prior period. This growth reflects more than savings discipline. It highlights the value of community-based financial systems especially when consumers seek practical, trusted ways to navigate rising living costs and ongoing financial pressure.
The real challenge for the financial sector is not simply developing more products or features. It is ensuring that existing tools feel relevant to the realities consumers face every day.
“Financial confidence is built when households feel supported in making everyday decisions under pressure. That’s where advice and education must evolve,” adds Ochse.
Consumers are asking for clarity and confidence. Financial tools must help households interpret pressure, manage uncertainty and make practical decisions in real-world conditions. Therefore, financial education must also evolve beyond theoretical budgeting advice and become more responsive to the emotional, digital and behavioural realities shaping financial life today.
This is especially critical when inflation tests both household finances and the ability to remain confident, rational and future-focused under continuous pressure. The institutions that will matter most in the years ahead will not simply provide financial products, they will help people navigate uncertainty decisively and confidently.
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