‘Paying close attention helps you plan with confidence rather than reacting under pressure.’
As South Africans count down to the 2026 National Budget Speech, many question whether the minister has any plans to alleviate the financial pressure many households are facing.
The budget’s biggest impacts are felt not only in parliament but also in households’ daily financial realities, at the petrol pump, the grocery store, and on payday.
Finance Minister Enoch Godongwana will deliver the speech next week, on 25 February, in Cape Town.
Household spending budget
Ester Ochse, head of FNB Integrated Advice Product, notes that households spend more than 60% of their income on essentials such as accommodation, transport, and food, and even small policy shifts can affect their monthly budgets.
She says the minister’s speech should not be seen as a one-off announcement but rather as a guide to everyday money choices.
“When most of your income goes to essentials, there’s very little room for surprises,” she adds.
“Budget season matters because it signals what shape your financial reality will take over the year ahead, and where one might need to make adjustments.”
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Here’s what you need to track this Budget season:
Personal income tax: Changes to tax brackets or rebates directly affect take-home pay. “For younger earners, this shapes monthly savings; for higher earners, it influences long-term investment and debt strategies,” says Ochse.
Fuel levies, electricity and transport costs: Fuel price changes are often felt immediately. She says that whether you drive to work, use e-hailing, or rely on public transport, increases here can quietly push up monthly expenses.
“At the same time, rising electricity tariffs are placing significant strain on South African’s pockets, making it essential to factor these costs into household budgets.”
Food inflation and indirect taxes: Even if the Value-Added Tax (VAT) remains unchanged, inflation and indirect taxes can raise the prices of everyday staples.
“For example, sin taxes on alcohol and sugary drinks have already made drinks more expensive, while levies on plastic bags add up for families doing weekly grocery runs,” she says.
“These small costs, combined with rising food prices, can noticeably stretch household budgets.”
Interest rate signals: Rates aren’t set in the budget, but the speech often hints at economic trends that affect borrowing costs, which are crucial for households with home loans, car finance, or credit cards.
Social spending priorities: Budget allocations towards social grant support, education and healthcare shape the broader cost of living and affect households both directly and indirectly.
“For instance, if the child support grant increases by R50 per month, that’s an additional R600 per year, enough to cover some school expenses or a month’s worth of basic groceries,” she adds.
“These small adjustments can make a noticeable difference in everyday household resilience.”
Education costs: From school fees to tertiary funding, budget decisions influence how families plan for children’s education and how young adults approach further studies.
Healthcare and medical tax credits: Adjustments here affect affordability, especially for households balancing medical cover with other big expenses.
Sin taxes and lifestyle spending: Higher excise duties on alcohol and tobacco tend to impact social costs, from planned or unplanned weekend braais to nights out.
Infrastructure and jobs: Infrastructure spending can signal future job creation and growth, especially for young professionals building careers.
Government debt and confidence: Less visible but important: borrowing levels shape inflation expectations and interest rates, influencing the financial environment households live in.
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Revisit your monthly household budget
Ochse suggests that one of the most practical steps during budget season is to revisit your monthly household budget and savings plan.
“If fuel, food, or borrowing costs are likely to rise, it’s wise to check your debit orders and build a buffer into your emergency savings. Small adjustments made early can prevent bigger stress later,” she says.
Budget is also an opportunity to reset financial goals. Whether you’re earning your first steady income or making major life decisions around property, education, or retirement, your budget offers valuable clues about what lies ahead.
“Paying close attention helps you plan with confidence rather than reacting under pressure,” adds Osche.
How to manage commuting costs
She adds that commuting costs can be managed more creatively.
“Sharing rides through e-hailing apps or carpooling with colleagues and friends makes travel more affordable while easing the strain on your budget.
“Together, these strategies show how proactive planning and small lifestyle adjustments can strengthen financial resilience.
“Small adjustments made early don’t just prevent bigger stress later, they build the confidence and resilience you need to face life’s financial challenges head on.”
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