When everything increases except salaries, life can feel overwhelming.
South Africans are grappling with rising fuel prices, soaring electricity costs, and inflationary pressures, making financial planning more crucial than ever especially for couples trying to build a future together.
The reality of financial strain on South African households
South Africa’s economy has been under strain, with the cost of living rising faster than incomes.
According to Wonga’s Summer Spending Survey, which gathered insights from 13 775 South Africans nearly 50% of respondents spent less last holiday season due to financial constraints.
“The rise in fuel and electricity prices and a changing interest rate landscape means that financial planning is more important than ever,” says James Williams, Chief Marketing Officer at Wonga.
While recent interest rate cuts have eased some financial burdens for 39% of respondents, many couples are still struggling to balance everyday expenses with long-term financial goals.
Why financial compatibility matters in relationships
Money is one of the leading causes of stress in relationships. A lack of financial communication can lead to misunderstandings, resentment, and even breakups.
A study by the South African Depression and Anxiety Group (SADAG) found that financial stress is a major contributor to mental health issues among couples.
“For couples, understanding each other's financial goals and challenges is important to finding ways to save and spend wisely together,” Williams adds.
By working as a team and being financially transparent, couples can reduce stress, build trust, and create a stronger financial foundation for the future.
6 practical financial strategies for couples
Here are six key financial habits that couples can adopt to stay ahead:
Re-evaluate monthly budgets: A joint budget helps couples track income, expenses, and potential savings. Reviewing financial habits together can highlight areas where expenses can be cut.
With inflation and rising costs, reducing discretionary spending on luxuries like dining out, entertainment, and subscriptions can make a big difference.
Prioritise essential expenses: With the impending 12.7% electricity tariff increase in April 2025, it’s more important than ever to prioritise essential expenses such as rent, utilities, and groceries.
Couples should differentiate between needs and wants, ensuring that fixed costs like bond repayments or rent are covered before spending on non-essentials.
Invest in energy-efficient solutions: Electricity costs are a major financial burden for South African households. Investing in LED lighting, gas appliances, and solar power can significantly cut utility bills over time.
While there’s an upfront cost, the long-term savings on electricity bills make it a worthwhile investment. Government incentives for renewable energy adoption can also help offset costs.
Build an emergency fund: An emergency fund is a financial safety net that can prevent reliance on credit during tough times. Financial experts recommend saving three to six months' worth of living expenses in a separate, easily accessible account.
Having savings set aside for unexpected expenses, such as medical emergencies or car repairs, can reduce financial stress and avoid accumulating debt.
Explore smart investment options
With inflation eroding the value of money, couples should consider alternative investment options that protect their wealth. Some viable options include:
- Inflation-linked bonds: These adjust with inflation, preserving purchasing power.
- Property investments: Real estate remains a stable long-term asset in South Africa.
- Tax-free savings accounts: These provide tax benefits while growing wealth.
- While all investments carry risk, diversifying income sources can help safeguard financial stability.
Have open and honest conversations about money
Financial transparency is crucial in any relationship. Couples should:
- Discuss their financial goals (buying a home, starting a family, travelling).
- Set joint savings targets for short-term and long-term plans.
Resolving conflicting financial priorities
One of the biggest challenges in relationships is deciding how to allocate money. Differences in spending habits or financial goals can create tension. The solution? Compromise.
Financial check-ins
Financial check ins are crucial. As life circumstances change, such as a job promotion or unexpected expenses, these check-ins give you the opportunity to adjust your goals and stay on the same page.
Managing unequal contributions to the household budget
Another common challenge is deciding how to split household expenses.
A strict 50/50 split might seem fair initially, but it doesn’t always work when one partner earns significantly more than the other. This can lead to feelings of resentment or financial strain.
Many couples find success with a proportional contribution model. Instead of splitting bills equally, each partner contributes a percentage of their income.
For example, if one partner earns 70% of the household income and the other earns 30%, their contributions to expenses can reflect that ratio.
Money struggles can put immense pressure on relationships, but unity and planning can help couples weather financial storms.