Summit discusses importance of financial literacy at school level

Delegates at the FSCA Financial Education Summit in Sandton heard that that while financial education is already included in the current school curriculum more can still be done.

Delegates also heard that banks should play a bigger role in driving financial literacy instead of only focusing on selling financial products.

Speakers emphasised that in a credit driven economy like South Africa, there are both risks and benefits to debt.

A speaker at the financial literacy summit revealed that while financial education is covered in different phases and subjects in the basic education school curriculum, there is no clear progression of skills while there is also duplication across subjects.

Chief Education Specialist at the Department of Basic Education Mzikayise Masango says the department seeks to review and modernise the content on an ongoing basis to infuse more financial education and to train educators on the content.

“In the GET phase, which covers Grade 7 to 9, consumer education is found in a subject called Education and Management Sciences (EMS). In the FET phase from Grade 10 to 12, it is covered in choice or optional subjects mainly in business studies, accounting, economics, mathematical literacy, consumer studies, tourism and to a certain extent, life orientation.”

Standard Bank South Africa CEO Lungisa Fuzile says the rules in the banking sector are such that banks are cautioned against mixing financial education with selling financial products.

Fuzile says debt can be beneficial if it’s needed and is used wisely.

“Let’s just take it that people ask for credit when they need it, not because we force them to have it whether you run a business, you need a loan to expand it or to take it to the next level, or to see it through a dip, personal life, you need a house, if you think that you’ll save for it, you may never have one. Face the reality, this is a credit driven economy. Debt can be good, debt can be bad, used judiciously it can ensure that you enjoy a quality of life if were to fix it only within your income.”

Group CEO at FirstRand Mary Vilakazi says as many financial institutions move to reduced branches to go digital, there is an opportunity to up-skill branch workers to take on more of an integrated advisory role which goes beyond merely selling financial products.

“In the branches you can still find someone who speaks other languages outside of English and that’s still a very important thing for us to take into account. So, in the construct of a branch is there someone that understands insurance, that can have a discussion on savings products and long- term products because often people come in and deal with deposits and forget that people are saving and one day they’re going to retire. So, we don’t always get it right but we are on the journey to ensure that most of our employees can be advisors.”