Third-year students lack basic financial education: Survey

A recent survey conducted by the youth financial skills portal, WaFunda shows that third-year South African students have low levels of basic financial education.

Contributors to the study say unpaid store credit and gambling are among the factors to the concerning state of financial literacy among the youth.

The youth are now being encouraged to use online information to manage their finances.

WaFunda partnership manager Tshepo Kgapane explains, “So when you look at the current state of youth financial literacy in South Africa, I would say it’s moderate to low and it’s supported by various studies including some of our own data. So when you look at our insights, youth have shared, store accounts, loans, black tax places a lot of pressure on them and the major influence is poor financial planning, life style pressures and even online gambling.”

Insights gathered from the youth revealed that store accounts, loans, and the burdens of “black tax” impose significant pressures on them. Poor financial planning, lifestyle choices, and online gambling were cited as major contributing factors.

The findings highlight the critical need to equip the youth with essential financial skills and knowledge to navigate the complexities of managing their finances effectively. By accessing online resources and engaging in financial education programs, young individuals can empower themselves to make informed and responsible financial decisions for their future well-being.