Financial Education Trust
South Africa has a savings ratio of only 2%, while levels of personal debt are climbing steadily. A lack of financial discipline and knowledge are two of the main factors causing this situation, across all income groups.
It is clearly critical that all South Africans understand their role in preserving the wealth of the country through strengthening their own financial position. We must, quite simply, become a nation of savers.
Financial education therefore aims to change the way South Africans think about their financial affairs, and consequently to support their positive financial management by:
- Educating consumers on key financial principles.
- Educating consumers on financial decisions that are appropriate for them at different stages of their lives, and on the range of financial solutions available to them at each stage.
- Educating emerging entrepreneurs on financial management principles they require to create and run viable businesses.
- Equipping learners with the knowledge to make informed financial decisions once they earn an income.
Since the initiative aims to bring about behavioural changes, it will be driven primarily through an interactive format that requires audience participation and personal action.
Radio and print media will also be used, the intention being to facilitate education in all 11 official languages.
Formally employed people will be reached through their worksites; informally employed people through forums such as burial society networks, stokvels, and community groupings, and learners through primary and secondary schools.
It is anticipated the Financial Education Trust will receive funding of R60 million over four years.