Old Mutual's research has shown that poor financial planning habits are at the root of poor money management. Many people know what to do, they have basic knowledge and motivation; but they end up not doing it.
In response to the government’s Accelerated and Shared Growth Initiative for South Africa (ASGISA) call for education initiatives aimed at improving the economic prospects of ordinary South Africans, Old Mutual set aside a budget of R60 million (over five years) for its new financial education unit, which was launched in May 2007. The Financial Education unit makes use of trained facilitators and non-salespeople within Old Mutual to deliver financial literacy programmes.
This comes at a time when financial statistics such as these come to light:
- Currently consumer credit to households is estimated at R800 billion with 14 million active credit consumers and 50 million open accounts.
- There are approximately 2.65 million consumers in arrears for one to three months.
- 4.24 million consumers have judgements or listings on credit bureaus.
- Over two million consumers have Emolument Attachment Orders (Garnishee Orders) attracting monthly instalments of R780 million.
- 6 000 cars and 2 000 houses are being repossessed monthly.
- South Africans are under pressure by a staggering R5 trillion rands.
- Only about 6% of South Africans can retire financially secured.
Old Mutual's investment in financial education is part of Old Mutual's social responsibility to educate the wider South African population on responsible financial behaviour, providing South Africans with knowledge and tools around money management. The aim is to help the nation break the cycle of generational poverty, get out of the debt trap and show people how to use the limited financial resources they have to realise their goals and dreams.
Find out more
To find out more about Old Mutual's Financial Education initiatives, please select the relevant link from the list below: