Before the Budget Speech: 10 money watchpoints for South African households

AS SOUTH Africans count down to the 2026 National Budget Speech, it’s clear that the biggest impacts of the budget aren’t felt in Parliament; they’re felt in households’ daily financial realities like the petrol pump, the grocery store, and on payday.

With households spending more than 60% of their income on essentials like housing, transport and food, even small policy shifts can impact their monthly budgets. FNB Integrated Advice Product Head Ester Ochse says the Budget Speech by Finance Minister Enoch Godongwana should not be seen as a once-off announcement but as more of a guide for everyday money choices.

“When most of your income goes to essentials, there’s very little room for surprises,” she said. “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.

“Whether you’re a young professional managing your first payslip or a family juggling school fees and retirement planning, paying attention to Budget signals can help you feel more in control.”

Here’s what you need to track this Budget season:

1. 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.
2. Fuel levies, electricity and transport costs: Fuel price changes are often felt immediately. 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.
3. Food inflation and indirect taxes: Even if VAT stays the same, indirect taxes and inflation pressures can raise the price of everyday staples. For example, sin tax on alcohol and sugary drinks have already made drinks more expensive, while levies on plastic bags add up for families doing weekly grocery runs. These small costs, combined with rising food prices, can noticeably stretch household budgets.
4. Interest rate signals: Rates aren’t set in the budget, but the speech often hints at economic trends that affect borrowing costs, crucial for households with home loans, car finance or credit cards.
5. 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 rises by R50 per month, that’s an extra R600 a year, enough to cover some school needs or a month’s worth of basic groceries. These small adjustments can make a noticeable difference in everyday household resilience.
6. 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.
7. Healthcare and medical tax credits: Adjustments here affect affordability, especially for households balancing medical cover with other big expenses.
8. 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.
9. Infrastructure and jobs: Spending on infrastructure can signal future job creation and growth, especially relevant for young professionals building careers.
10. Government debt and confidence: Less visible but important: borrowing levels shape inflation expectations and interest rates, influencing the financial environment households live.

Ochse suggested that one of the most practical steps during budget season was to revisit your monthly household budget and savings plan. If fuel, food, or borrowing costs are likely to rise, it would be wise to check your debit orders and build a buffer into your emergency savings.

Small adjustments made early can prevent greater stress later. She emphasised that the budget was 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.

At the same time, 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.

As Ochse put it: “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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