Financial literacy – the ability to understand and effectively manage personal finances – remains a critical challenge in South Africa.
With only around 51% of South Africans considered financially literate, interventions are needed urgently.
The state of financial literacy in South Africa
Recent studies reveal concerning trends in South Africa’s financial literary landscape.
Up to 49% of South Africans are financially illiterate, with women, less educated individuals, and Black Africans most affected. However, research into measuring and profiling financial literacy in South Africa indicates that the substantial variations in financial literacy depend on demographics and economic differences in different provinces – something interventions need to take into account.
Encouragingly, research conducted in 2022 by the Financial Sector Conduct Authority (FSCA) shows more women (37%) than men (34%) are solely responsible for day-to-day money management, indicating growing financial empowerment among women.
Worryingly, a 2023 study exploring the influence financial literacy has on retirement planning in South Africa indicates that financial literacy significantly influences how people prepare for retirement. Only 24% of South Africans actively plan for retirement, which points to an impending crisis and an over-reliance on government social grants.
Interventions to improve literacy outcomes
PocketFin founder Pierre van der Merwe advocates for introducing financial literacy as a high school subject. While no single framework exists, the Department of Basic Education integrates financial concepts through the National Curriculum Statement (NCS) and Curriculum Assessment and Policy Statements (CAPS).
A focus on financial literacy helps to prevent learners from going on to make common financial mistakes in adulthood, including failing to budget, making bad investments, incurring excessive debt, and withdrawing their retirement savings prematurely.
School-level programmes
Some notable school-level initiatives include:
- The Money School livestreams a financial literacy programme to more than 45 schools throughout South Africa, targeting grade 11 and 12 learners at mainly quintile 1-3 schools countrywide. The nine-week programmes, currently sponsored by Satrix, focus on basic financial skills and concepts of investing as well as budgeting, saving, and managing debt. In conjunction with 1Life, The Money School also holds financial literacy courses at Boston City Campuses throughout South Africa.
- MoneyTime SA offers online financial literacy programmes for South African children aged 10 to 14. The course helps young adults understand how to manage money.
- Nonprofit organisation JA South Africa (formerly Junior Achievement SA) offers 20-hour More Than Money and My Money Biz programmes on how to manage money responsibly for high school learners in grades 8-10. In 2021, JA South Africa partnered with the Momentum Metropolitan Foundation to implement its More than Money programme to more than 360 grade 6-7 learners from Chivirikani Primary School in Ketlehong and Theo Twala Primary School in Springs.
Corporate and institutional initiatives
Several organisations have rolled out or supported initiatives that aim to improve general financial literacy among South African adults.
- The Financial Sector Conduct Authority (FSCA) is helping to shape financial literacy in the country by means of its draft Financial Education Commitment Charter. The draft charter’s goals include improving financial literacy, capability, and the overall well-being of financial customers. Organisations are invited to partner with the FSCA to expand the reach of the FSCA’s programmes, which will make them more accessible and impactful. Financial institutions can play a particularly meaningful role in helping to roll out programmes for individuals, households, and communities. The FSCA’s MyMoney Learning Series also offers free courses across five themes: Financially Smart, Financial Safeguard, Financial Protection, Financial Knowledge, and Business Finance. It is available as an e-learning component on the FSCA’s consumer website.
- In November 2021, a two-year-long multi-phase programme to assist business owners in townships with financial and business skills came to an end. Rolled out by the Association for Savings and Investment South Africa (ASISA), the Financial Literacy and micro-enterprise (FLAME) programme uses financial literacy as a core development tool and is now in its third iteration (FLAME 3.0).
- Capitec’s MoneyUp Academy (previously the Live Better Academy) focuses on teaching South Africans how to invest, reach certain financial goals, and achieve financial freedom. There are a variety of free short courses on offer. Capitec has taken steps to help close the literacy gap and foster financial inclusion in South Africa.
- Old Mutual offers a variety of online educational resources to help South Africans, such as its Moneyversity courses and its On the Money programme.
- Momentum Metropolitan is developing the next phase of its flagship programme Motheo Financial Dialogues, Motheo 2.0, which will be offered to higher learning intuitions, work readiness programmes, and young people entering the world of work. The programme will be implemented in three phases over three years into the 2026 financial year to support the company’s consumer financial education strategy.
- Standard Bank’s WalletWise is a financial education initiative that improves financial outcomes among participants. It provides information and tips on a variety of topics, including credit health, insurance, bank accounts, saving and investing, and more.
- Avo Vision empowers small, medium and micro enterprises to develop sustainably. As part of its efforts, it offers financial literacy training and webinars to upskill entrepreneurs and employees. It has partnered with companies such as Absa, Woolworths, Hollard, Momentum Metropolitan, Unilever, Sanlam, Standard Bank, Santa, the De Beers Group, African Bank, Nedbank and more to provide individuals with the knowledge, skills and confidence they need to make informed financial decisions.
- Money Savvy Humans is a learning series consisting of both free and paid online courses. Its 10 Steps to Get Money Savvy Online Course is free.
- Nonprofit organisation FunDZA Literacy Trust’s ‘What’s your story?’ is a free resource of stories about the fictional Majola family, which helps readers gain insights into financial literacy concepts. It has collaborated with the Momentum Metropolitan Foundation to focus on basic financial literacy as well as entrepreneurship.
- Taking Care of Business (TCB) is a non-profit social enterprise that empowers unemployed South Africans and their families through small business opportunities, mostly within the circular economy. It runs a full-day training/coaching programme, Me and My Money – My Journey to Financial Freedom – to empower individuals with the mindset and skills they need to become financially literate. In-person training is available in Gauteng, Cape Town, Paarl, Durban and East London, with online training options also available.
<H2>The future of financial literacy
As South Africa works to improve financial literacy rates, key focus areas include:
- Digital financial education platforms
- Targeted interventions for vulnerable groups
- Public-private partnerships
- The integration of financial education into formal curricula
Read more about policy and interventions in the Financial Literacy topic on the Trialogue Knowledge Hub.
