In every aspect of personal finance, South Africans are struggling. Some of the statistics are especially grim: South Africans owe R2.5-trillion in outstanding loans according to a 2024 credit stress report by Eighty20, and only 6% of the population is on track to retire comfortably, according to this 10X Investments report.
Managing one’s money is never easy, even for those with advanced levels of financial literacy – not least because financial advice can often be masked by complicated jargon that is totally inaccessible.
This situation is made worse by our gruelling economic climate. So, it makes sense that many South Africans are looking for financial advice – often in unusual places.
On the online platform Reddit, a group called r/PersonalFinanceZA has amassed 43,000 members since its creation in 2018. It ranks in the top 3% of Reddit sites by size. Here, members can post any questions they have about finance, getting feedback from other users.
Common questions revolve around budgeting, taxes, bonds and mortgages, and, of course, debt.
The site has an index for FAQs and guides for people looking to figure out how to handle their finances. There is a “starter pack” page for those looking to learn about tax-free savings accounts, learning how to put together a portfolio, figuring out how retirement annuities work, or just those looking for a little support when they are overwhelmed and unsure what to do.
People ask questions that range from something as basic as how to structure a grocery budget around a high-protein diet for gym bulking, to complex questions around bond laddering and rand-denominated offshore unit trusts.
The site seems genuinely useful, and the advice given is usually well-researched and structured, often coming from people with personal experience relating to the question posed. Nonetheless, r/PersonalFinanceZA is only moderated by its own users, and no formal financial advice system lies behind it. Yet clearly it has struck a chord with its community.
Not just a ‘nice-to-have’
However, across the internet on Facebook, a few more worrying forums exist for personal finance help. There are groups for just about everything, from personal loans and vehicle financing to more disturbing groups offering loans to those under debt review or who have been blacklisted.
These groups have thousands of active members – one simply called “South Africa loan” has more than 90,000 members. The groups are flooded with posts by people seeking advice on how to apply for loans, and scammers offering their services (usually targeting those who would not qualify otherwise). In some cases, there’s a distinct whiff of fraud, but this might not be obvious to everyone, especially those who lack financial knowledge and are struggling to make ends meet.
Aside from the internet, an FNB survey conducted in 2024 shows that people still look to friends and family for financial advice. A total 27% of respondents said their social circle is their most valued channel for advice. Lytania Johnson, CEO of FNB’s personal segment, finds this information troubling.
“It is a somewhat concerning statistic given the untested nature of financial and retirement advice often provided by friends and families,” she explains.
Johnson sees the appeal of social-circle advice in that it is “highly personal and comes from a deep understanding of the person and their circumstances”, but this advice is all too often misinformed. This is especially true given a widespread lack of financial literacy.
The one place from which people are not getting financial advice is the education system, to the detriment of millions of South Africans. Poor basic education, under-resourced schools, and limited access to credible financial resources all contribute to this reality.
While financial literacy is integrated as one half of the economic management sciences subject, it is only compulsory from grades 7-9 and only taught two hours a week.
“Financial literacy is not just a nice-to-have,” says Dhashni Naidoo, FNB’s consumer education programme manager. “It’s a critical life skill that we should be teaching our young people. Pupils should leave the school system with a deep and pragmatic understanding of personal finances and how to make informed personal finance decisions.”
Making cents of it all
Financial illiteracy is dangerous at a personal level – and has wider implications for the economy at large if you consider crippling household debt and one of the lowest savings rates in the world.
This is why finance giants like Sanlam and FNB are putting together campaigns and projects to connect with people who have fallen through the cracks of the education system, or are simply afraid to tackle the complex world of money.
At Sanlam, this comes in the form of the Dirtiest Word campaign – a financial literacy course encouraging people to openly say the “F-word” (finance).
“For too long, money has been treated as a private, even taboo subject in South African households – but silence breeds insecurity,” says Mariska Oosthuizen, Sanlam’s chief marketing officer. “Talking about money has been shown to empower better financial outcomes, healthier relationships, and more confident decision-making.”
On its website, Sanlam has set up a programme for users to learn what sort of a spender they are, and how to budget around that. It also provides videos by a money therapist, talking about the common triggers and fears people have around their finances.
But the main segment, Oosthuizen explains, is the “fin lit” course Sanlam hid in a comedy show with comedian Mpho Popps at the helm. “We [used] laughter as a bridge to break financial taboos, and the approach has resonated widely; humour has helped disarm the fear and shame often associated with money talk, making it more natural to bring these conversations into homes and communities.”
FNB has just launched its “Fincents” course, which Naidoo describes as a platform to address “the social, cultural, and psychological beliefs held by consumers about money”.
In a five-part series, Fincents approaches what are perhaps the most integral topics to South Africans. It teaches courses on budgeting and interest rates, savings and investments, the cost of credit, handling insurance, and will and estate planning.
In the cases of Sanlam and FNB, these courses are free to access, interactive, and easy to digest, rather than walls of text. With a little creative energy, the hope is to find and engage with those who need this information most.
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