Issued by Ismail Joosub on behalf of the FW de Klerk Foundation on 27/08/2025

This article is the second instalment in our Money Smart Week 2025 series, following our earlier focus on unemployment and the constitutional imperative for an inclusive, gender-equal economy. In this piece, we turn to an everyday financial burden that shapes the lives of millions of young people: the cost of commuting. For many graduates working in or around the informal sector, transport expenses consume such a large share of income that the promise of financial independence is delayed or denied altogether.

The statistics are sobering. South African households spend an average of 16% of their budgets on transport, compared to a global average of 10-15%. Among the poorest households, this rises to more than 20% and for many young workers the figure climbs above 40% of income. When lost hours are taken into account, commuting costs can reach more than half of net wages. For a country where youth unemployment already exceeds 46%, this is simply an obstacle to dignity, savings and opportunity.

The roots of this crisis lie in what is often termed spatial apartheid: a legacy of planning that placed black South Africans far from centres of economic activity. Townships and informal settlements remain at the periphery of our cities, forcing young people to spend hours travelling and to shoulder costs that their peers in wealthier suburbs never face. Nearly three decades into democracy, this structural inequality persists. The effect is twofold: youth are penalised financially simply for where they live and their capacity to build savings and invest in the future is undercut before they even begin.

Blame alone will not lighten the load. What matters now is how we turn this entrenched injustice into an opportunity for growth, resilience and financial empowerment. Money Smart Week is not only about theory, but also about practical tools for young people to take control of their finances. Commuting, though a burden, can become a catalyst for better financial planning and smarter economic choices.

First, youth must treat transport as a central line in their personal budgets. Too many graduates approach commuting as an unavoidable drain rather than a cost to be managed with discipline. By explicitly budgeting for travel, setting aside predictable amounts and tracking the monthly outflow, young people can avoid falling into the trap of unplanned debt or reckless short-term spending. Financial literacy begins with awareness and awareness begins by facing the numbers squarely.

Second, savings must not be abandoned simply because commuting costs are high. Even small, regular amounts, like R50 or R100 set aside every month, build up over time. The principle of “pay yourself first” remains sound, even under pressure. The Constitution’s protection of dignity in section 10 extends to financial dignity: the ability to provide for oneself and avoid perpetual dependence. For young graduates, disciplined saving in the face of commuting costs is not a luxury but a safeguard against insecurity.

Third, commuting challenges should be seen as opportunities for entrepreneurship. Every overcrowded taxi rank is also a marketplace: a place where food, digital services and financial products can be offered. Young people with initiative can use the time and environment of travel as springboards for enterprise. Section 22 of the Constitution protects the right to freely choose a trade or profession and for many, exercising this freedom begins not in boardrooms but in the informal spaces where South Africans commute daily.

Fourth, young professionals should make use of modern financial tools that help balance the weight of commuting costs. Mobile banking, digital savings wallets and budgeting apps allow commuters to track where their money goes, set realistic targets and even create automated savings mechanisms. The right to access information in section 32 means little if financial products remain opaque or inaccessible. But when the youth embraces tools that bring transparency, they transform financial literacy into financial control.

Fifth, young commuters must learn to pool resources and act collectively. Lift clubs, ride-sharing groups and stokvels specifically dedicated to transport costs are practical ways to reduce individual burdens while reinforcing community solidarity. These are not merely cultural practices but financial strategies, turning vulnerability into shared strength. In this way, what was once a barrier becomes an engine of cooperation and resilience.

Sixth, the lesson of commuting costs must extend to long-term planning. If high daily transport expenses are not managed, they erode the capacity to invest in housing, education, or retirement. Section 25 of the Constitution affirms property rights, but these rights are hollow if young South Africans never accumulate assets. Even modest, disciplined savings made possible by careful commuting budgets can secure deposits for homes, investments, or pension funds. The choice to plan, even under financial strain, is the difference between perpetual vulnerability and future stability.

Lastly, education must prepare young people for these realities before they face them. Graduates often enter the world of work with little guidance on how to balance commuting with other financial obligations. Section 29 guarantees the right to education and that right must include financial skills as part of the curriculum. Money Smart Week exists to fill this gap, but the lessons it imparts must be carried forward into formal education so that every young South African is equipped to manage money in the real economy.

The Prince’s Trust once quoted that “one in ten young people has declined job opportunities because they could not afford transport or uniforms.” In the same way, commuting should not remain a ceiling that caps youth potential. It must be treated as a foundation that is tough and unavoidable, but also instructive and on which young South Africans can build discipline, savings habits and entrepreneurial energy.

South Africa has faced harder trials and prevailed. We know how to overcome entrenched barriers. The challenge of spatial apartheid and its commuting costs is not insurmountable. With clarity, with constitutional grounding and with a commitment to financial literacy, young people can turn a daily burden into a springboard for freedom.

Money Smart Week is a reminder that the Constitution’s promises are lived out not only in courtrooms but also in taxi queues, train platforms and bus ranks. Each budgeting choice, each act of saving, each entrepreneurial spark is a way of realising the rights to dignity, equality and economic freedom. If our youth master the discipline of managing commuting costs, they will do more than survive the distance – they will chart a new path toward prosperity and independence.