At this rate, you are paying the equivalent of R0 per month.
This covers 0% of the household's minimal need of R0.
Our calculations are based on 9 assumptions.
75% of baristas are known to be sole income providers for their households.
Source: NIDS 2012
Using consumer price index data on food (April 2014) and a selected basket of goods, we estimate that the daily average cost per person for attaining 2000 calories is R27 (R815 per month per person).
We have not incorporated the food nutrition program or child support grants in our assessment. We feel our values are still quite conservative.
Source: Food - CPI Apr 2014 data, STATS SA
Travel costs are known to be high for baristas. We assume a need of R14 one way to get to work, based on an informal survey of baristas in Cape Town.
We assume the cost of getting from Khayelitsha to a Cape Town suburb through a very short informal survey as the base. It is true it can take up to two minibus taxi trips to leave home and arrive at work. These trips combined cost between R14-15. Daily this can then be R28-30.
Transportation is not cheap in Cape Town (public or private) and this is likely true through South Africa. Of course if the tariff or the number of trips from poorer areas to urban employer centres were lower then the cost would be lower. But it can also be higher depending on the distance.
Generally speaking, higher rents are associated with better provision of sanitation services and lower crime rates.
Associations with violence and sanitation taken from this data as well. Where rent was not paid (or reported), the assumption was that the household lived in informal risky settings. We don't want to highlight that as a residential option.
Source: Housing - NIDS 2012, UCT
Estimate a reasonable monthly health allowance (per person):
Setting up a health budget for the household is very important. Public consultancies cost R39 per visit and for medicines. Healthcare costs could also be covered through health insurance which can cost at least R299 per month per person.
Sources:
http://www.southafrica.info/services/health/healthfaq.htm
http://www.medicalaid.co.za/MedicalAid/MedicalAidfortheLowIncomeEarner.aspx
Estimate the cost per school aged child:
Expenses include stationery, uniform, textbooks, and even transportation costs.
We assume two individuals in the household are in school.
Median expenditure on education is between R100 and R200/month per kid. There isn't a clear determination of costs per month for a family sending kids to school. It's likely on transportation, stationery, etc - but there are some definite costs.
We limit the slider to R1000 because households are unlikely to be willing to pay more than that for kids. Public schools with fees and private schools can cost at R1000 and be upwards of R8000/month.
Sources:
NIDS 2012
http://www.education.gov.za/LinkClick.aspx?fileticket=oAFdXOY5hKo%3D&tabid=452&mid=1038
Estimate the monthly cost per person in the household:
Communications are necessary for staying in touch with families, friends, accessing news, and for emergencies.
Estimate a monthly recreation cost per person in the household:
It is always good to take time out from work and managing a household. Everyone needs a break!
These include clothing, household items, personal care, and emergency expenses. Estimate other costs incurred per person in the household.
This should including for emergencies and procurement of durable goods, transportation of goods (gas cylinders, groceries, etc), implicit and explicit costs of running a household.
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