South Africans maintain been encouraged to manufacture smart financial decisions by saving for the future as a recent survey on financial behaviours of adults exhibit a concerning pattern.
According to the recent Baseline survey on financial literacy in South Africa, only 46% adults tend to live for today rather worry about providing for their future while 44% stated that they acquire not been actively saving and a third of South Africans acquire no retirement location.
“As the National Treasury, we are worried about the statistics for people who expect to rely on government pension because in the absence of growth, we carry out not want to conclude up with a society that relies on government handouts as opposed as to saving money for their own future,” Acting Tax and Financial Sector Policy Division Deputy Director-General, Mmakgoshi Lekhethe, said on Friday.
Lekhethe was addressing the virtual launch of Money Smart Week South Africa 2023 (MSWSA 2023) under the theme “Plan your money, plant your future.”
Money Smart Week is the country’s largest coordinated financial literacy campaign aimed at motivating and empowering South Africans to become better educated about their finances. This year’s campaigns runs from 28 August until 03 September 2023.
South Africa scored at around 51% of individuals that are financially literate in the survey, which was conducted by the Financial Sector Conduct Authority (FSCA) in partnership with the Human Sciences Research Council (HSRC).
The survey further indicates that only 26% maintain funds saved for rainy days but those will last for only three months.
“The financial decisions we fabricate today will manufacture a significant impact on our security and our standard of living given the current economic condition that people find themselves in and therefore saving and being money smart is a strong foundation towards securing your future,” Lekhethe said.
While she acknowledged that financial literacy might not address all of consumers’ vulnerability, Lekhethe said financial literacy could pave the way for positive actions, which are necessary for wealth formation and preservation.
These actions include saving for a rainy day and for long term goals such as retirement and making an informed decision about retirement.
“As government and regulators, we acquire to carry out our best in providing protection to consumers. An informed consumer can demonstrate improved capability in terms of making decisions about their financial future,” she said.
Lekhethe expressed concern about the emergence of fraudulent scams schemes that catch advantage of people’s vulnerabilities.
The Baseline survey on financial literacy in South Africa examines the financial knowledge, attitudes, and behaviours of adult South Africans as fragment of ongoing efforts to better understand, monitor, and promote financial literacy in the country. – SAnews.gov.za
Tse Tse Guy
Hopefully my journey through MyZA will be as EVENTFUL as it has been enjoyable so far.
sly bible
Fun South African Fact: While the country only covers 1% of the Earth’s land surface, South Africa boasts 10% of the world’s bird, fish and plant species as well as 6% of its mammal and reptile species!