Beauty products & grooming services that lead in sucking Young Batswana's budgets

Understanding where money flows can empower individuals to make smarter financial decisions. Here’s a deeper dive into spending trends, tailored to align with the aspirations, challenges, and lifestyles of young professionals and students striving for financial independence.

Stable Categories: Communication and Transport Services

The Communication category, including phone services and equipment, remained stable in November. This is good news for those who rely on technology for work, studies, or social connections. For young people trying to maximize limited incomes, consistent communication costs make budgeting for essentials and leisure more predictable.

Likewise, Transport Services, such as public transport fares, held steady. However, overall transport costs remain high, especially for personal vehicle operations. For those dreaming of owning a car, understanding operational costs like fuel and maintenance is critical. Planning ahead for these expenses can help avoid financial stress.

Rising Costs in Restaurants and Hotels

Prices in the Restaurants & Hotels category grew modestly by 0.4% in November. This reflects increased spending on dining out and social gatherings. For individuals who enjoy socializing or attending events, these small increases can add up quickly.

• Pro Tip: Save by prioritizing home-cooked meals or exploring affordable dining options when socializing. This small change can free up funds for bigger goals, like saving for a car or supporting side hustles.

Miscellaneous Goods & Services – A Silent Budget Sucker

This category includes personal care items, financial services, and insurance. While the index grew only slightly month-on-month, it has risen 7.6% year-on-year. For those juggling school, work, and side businesses, rising personal care costs (like grooming or beauty services) and overlooked expenses like insurance can eat into savings.

• Practical Steps:

  • Opt for DIY options for grooming or leverage student discounts where available.

  • Compare insurance packages to find affordable yet comprehensive coverage.

Opportunities in a Stable Housing Market

Costs in the Housing, Water, Electricity, Gas & Other Fuels category showed minimal change, with a modest 0.1% increase year-on-year. While housing is often a significant expense, stability in this area provides breathing room for young people who are renting or living in family homes.

For long-term thinkers, the stability also creates an opportunity to explore options for affordable homeownership. Initiating small savings or investment plans now can pave the way toward achieving this goal in the future.

The Recreation Budget Dilemma

Spending on Recreation & Culture, such as entertainment equipment and hobbies, rose by 1.2% in November. For those who value leisure and social connections, this trend reflects how personal choices can impact monthly budgets.

• Tip: Re-evaluate recreational spending. Can you borrow or share entertainment items? Are there free community events or outdoor activities to explore?

Key Takeaway for Financial Growth

Young people navigating these spending trends face a choice: continue with a "consumer mindset" or embrace a "wealth-building mindset." By making small adjustments to spending habits—especially on non-essential categories like dining out and recreation—they can redirect funds to invest in future goals like buying a car, starting a business, or achieving financial independence.

Understanding where inflation impacts their budgets most can empower smarter decisions today for a more stable financial future tomorrow.

Source: (Statistics Botswana)