INSIDE YOUR POCKET – The hidden crisis: How financial illiteracy is crippling South Africa's economy
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GUEST – Harry Scherzer is the CEO of Future Forex.
When you read the words, “South Africa has a major financial literacy problem,” what’s the first thing that comes to mind? Is it the approximately 30 million citizens living below the poverty line? Or is it the 40% of South African adults who go into debt to buy groceries every month? Or do you think that it’s a far more pervasive problem that affects South Africans of all income and education levels?
If you chose the third option, you’re probably closest to the truth. According to the results of a survey by the Sector Conduct Authority (FSCA) in partnership with the Human Sciences Research Council (HSRC), just 51% of South Africans are financially literate.
This lack of financial literacy doesn’t just impact obvious areas such as spending habits, loans, investments, and debt management either. It extends even further and can impact businesses’ ability to maximise revenue generation and minimise costs, with international money transfers being one of the clearest examples.
When you read the words, “South Africa has a major financial literacy problem,” what’s the first thing that comes to mind? Is it the approximately 30 million citizens living below the poverty line? Or is it the 40% of South African adults who go into debt to buy groceries every month? Or do you think that it’s a far more pervasive problem that affects South Africans of all income and education levels?
If you chose the third option, you’re probably closest to the truth. According to the results of a survey by the Sector Conduct Authority (FSCA) in partnership with the Human Sciences Research Council (HSRC), just 51% of South Africans are financially literate.
This lack of financial literacy doesn’t just impact obvious areas such as spending habits, loans, investments, and debt management either. It extends even further and can impact businesses’ ability to maximise revenue generation and minimise costs, with international money transfers being one of the clearest examples.