Discover how the latest NedFinHealth Index reveals a shift in South African households towards financial stability, with more individuals budgeting, saving, and managing debt effectively.
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About 45% of South Africans are spending less than they earn, and the spend score has climbed to 57.1%, according to the latest NedFinHealth Index, which points to a shift in behaviour, with more households consciously keeping expenses in check and paying bills on time.
The NedFinHealth Index, developed by Nedbank, measures financial wellness using eight indicators across four dimensions: spend, save, plan, and borrow. It compares perceptions with reality, offering a snapshot of how South Africans manage their money.
“South Africans are showing resilience in how they manage their money. The fact that nearly half of the population is spending less than they earn is a sign that people are starting to prioritise stability over impulse," says Frank Magwegwe, executive for financial wellness and advisory at Nedbank.
The data also reveals that savings are stronger than many admit. 57% of South Africans have at least three months of savings put aside, suggesting that more households are building buffers than public conversations about money often reflect.
Planning emerges as another area of strength. 71% of households report having a monthly budget, a sign of intentional behaviour rather than chance. “Budgeting is not glamorous, but it is powerful. The fact that more than seven out of ten households are budgeting shows that South Africans are thinking ahead, covering responsibilities and making space for life’s surprises," Magwegwe says.
Debt and stress remain the most pressing realities, the data shows. Money stress continues to be the number one source of anxiety across age, income, and lifestyle groups. 58% of South Africans worry about scams and fraud, while job-related stress is rising. Yet the borrowing score is improving, with more people reporting manageable debt or no debt at all.
“Debt is often painted as negative, but when managed responsibly, it can be part of a healthy financial life. The encouraging trend is that more South Africans are keeping their debt levels under control, which reduces stress and builds confidence," Magwegwe says.
The NedFinHealth Index does not present a perfect picture, but it does show progress. Financial fitness is not about flawless execution, but about awareness. Taking stock of where you stand can unlock insights that help you spend smarter, save with confidence, plan with intention, and borrow responsibly, he says.
“Financial wellness is a journey. The index is a tool that helps South Africans reflect honestly on where they are, and take practical steps towards a healthier financial future. Progress matters, even if it’s not perfect," Magwegwe says.
PERSONAL FINANCE