South African consumers are adjusting their financial behaviour in response to rising cost pressures, with credit bureau TransUnion's 'First Quarter 2026 Consumer Pulse Study' showing meaningful shifts in how households spend, save and manage credit.

While many households remain under financial strain, the findings point to a shift toward more deliberate and considered financial decision-making, the company adds.

Inflation for everyday goods remains the leading financial concern, cited by 41% of respondents to the study as their top financial worry.

Additionally, 35% of consumers indicated that they expect to be unable to pay at least one of their current bills or loans in full.

However, consumer sentiment remains measured. More than two-thirds, or 69%, of respondents said they are optimistic about their household finances over the next 12 months, down from 72% in the fourth quarter of 2025, while 14% expressed pessimism and 17% indicated they are neither optimistic nor pessimistic.

“Consumers are responding in practical ways to manage pressure. We are seeing a shift toward more deliberate financial behaviour, where households are actively adjusting spending, prioritising obligations and, where they can, building financial buffers,” says TransUnion South Africa research and consulting director Ayesha Hatea.

Many respondents have adjusted their financial behaviour over the past three months and more than half of the respondents, at 51%, reported cutting back on discretionary spending such as dining out, travel and entertainment, while 31% said they cancelled subscriptions or memberships.

Simultaneously, some households report taking steps to strengthen their financial position in the past three months.

The study found that 35% of respondents said they paid down debt faster, while 29% reported increasing contributions to emergency savings or stokvels. A further 23% said they increased their retirement savings, she points out.

This behaviour reflects a more cautious and intentional approach to money management. Consumers are looking for ways to maintain stability, whether by reducing non-essential expenses, managing debt more actively or setting aside funds for future needs, Hatea says.

More than one in three consumers, at 35%, expect their spending on bills and loans, such as housing, utilities, insurance and credit cards, to increase over the next three months. The same percentage, at 35%, anticipate higher spending on medical care and services during this period.

Additionally, 38% expect to increase contributions toward retirement funds and investments.

Conversely, a smaller percentage said they had increased their spending on in-store or online retail shopping such as clothing, electronics and durable goods at 29%, large purchases like appliances and cars at 26%, digital services at 25% and discretionary spending at 21%, the study shows.

“This suggests consumers are prioritising essential and future-oriented expenses, while remaining more selective in discretionary areas, reflecting a mindset where financial decisions are being made with greater scrutiny,” Hatea says.

Further, access to credit continues to play an important role in how consumers manage their finances. However, in terms of new credit products, TransUnion’s survey indicates that households are approaching borrowing more carefully in the current environment.

Among respondents, 41% indicated that they have used buy now, pay later (BNPL) services in the past year, with avoiding credit card interest named as a key motivation, while non-users most frequently cited avoiding additional debt as the top reason for not using BNPL services.

The role of credit is evolving. Consumers still rely on it to manage cash flow and navigate short-term pressures, but there is also a clear awareness of the need to avoid over-extension. This balance between access and caution is becoming more important, Hatea explains.

The quarterly findings point to a consumer environment defined less by financial comfort, and more by ongoing adjustment.

While sentiment has softened slightly from the previous quarter, many South Africans are actively managing their finances amid ongoing cost pressures, she says.

“Rather than a broad sense of financial confidence, we are seeing a more grounded and pragmatic approach. Consumers are making deliberate trade-offs to stay on top of their obligations and build resilience where possible.

“As economic uncertainty persists, the ability to adapt spending, savings and credit behaviour is likely to remain a defining feature of the South African consumer landscape,” she says.