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Students spend 52% of stipend on transport

Stanley Hutcheson & Associates (SHA) recently conducted a survey on the daily challenges facing South African students and found financial issues to be the most pressing.
Students spend 52% of stipend on transport
© atic12 – 123RF.com

Stanley Hutcheson, founder and MD of SHA says, "This particular survey was conducted in Midrand with the majority of respondents between the ages of 23 and 28. They reside mainly in the Ekurhuleni and City of Johannesburg municipal districts, which are some of Gauteng's most densely populated areas and the findings were insightful.

"Perhaps the most astounding cost was the amount of money that the students spend on transport every month. On average, students spend approximately R1,100 every month on transport, which forms a large portion of their income stream. The study also revealed that nearly all of the students were solely dependent on minibus taxis, as their primary form of transport. The respondents said that buses were unreliable or simply not available on the routes that they travelled to get to and from their main training facility."

According to South African legislation, the minimum monthly stipend/income paid to a student on a learnership programme varies in accordance to the level specified by the National Qualifications Framework. For a level 5-8 qualification, a minimum weekly stipend is set at R700, which equates to an average monthly remuneration of R2,800.

"The survey concluded that on average, learners are spending 52% of their monthly earnings on transport alone and, while the income from the wage is most welcome, potential employers in the public and private sector need to be aware that in some families these learners are the main breadwinners. 14% of the respondents had to support their own families and a further 21% of students had to work part time to meet their financial commitments every month."

As South Africa attempts to stare down rising inflation rates because of the weak Rand as well as a depressed industrial sector, the financial pressures facing learners will increase.

"It is critical that the private and public sectors work together to encourage skills development. A stable and capable workforce is a benefit to any economy facing a down turn. While our larger industries might take longer to recover, South Africa has a healthy banking and SME market which offer great employment opportunities," Hutcheson concludes.

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