The overall takeout from the 2022 Old Mutual Savings & Investment Monitor (OMSIM) is that South Africans have learnt from the lessons of the Covid-19 lockdown and a large percentage of those surveyed* now have a better relationship with money.

1. Fewer people are suffering from high financial stress
This year, half the households reported having significant financial worries and stress. This is a drop of 6% from 56% in 2020 after the start of the Covid-19 lockdown to 50% in 2022.

2. People are cutting back…
It would appear that many South Africans no longer worry about keeping up with the Joneses or have FOMO. Instead, they have changed to cheaper options or are making use of loyalty programmes and rewards programmes.The five main changes in expenditure are as follows.

• 66% are using loyalty and rewards programmes
• 33% are switching to cheaper supermarket brands
• 33% changed to cheaper TV streaming options
• 30% put major expenses on hold
• 30% cut down on domestic help

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3. …and supplementing their income
Even more people now are polyjobbers with side hustles and extra streams of income in addition to their main income. In 2021, the number stood at 47% – now it’s 51%.

4. Despite the stresses, more have emergency savings
In 2020, when the effect of the Covid pandemic was at its most intense, only 27% of the participants in that year’s OMSIM had an emergency savings fund that would see them through for three months or more. In 2022, that number stands at 39%.

5. Online gambling is becoming popular
The report revealed worrying financial behaviour: 44% of working South Africans are gambling and betting online, and 16% of them are doing it to make ends meet. This figure is higher – 27% – among those* earning R1 000 to R8 000 per month

In addition, it's attracting more young people with more than 70% of 18- to 29-year-olds having gambled online at some point.

6. Taking financial risks to (hopefully) reap big rewards 
Six in 10 respondents said they are likely to invest in crypto currencies in the next year. In fact, half of working South Africans think of themselves as ‘risk-inclined’ where investing is concerned, especially younger and higher-earning males.

7. People are not confident about taking financial decisions…
Whether respondents earned R8 000 per month or R100 000 per month, everyone is equally confident (or not) in their ability to make financial decisions. The difference between these two groups is only 0.2%, with low-income earners feeling 7.1% confident and high-income earners being 7.3% confident.

This means that just over one in four working South Africans are confident that they can take sound financial decisions.

8. …and yet they don’t have a financial adviser
64% of households in the survey do not have a financial adviser. Those who earn under R8 000 per month are the most financially stressed of all the income groups and yet 84% in this group don’t use a financial adviser to help them take better financial decisions. It really is a case of #knowbetterdobetter.

The report found a strong correlation between financial confidence, financial stress and financial satisfaction. Those who are less confident are also more financially stressed, less satisfied with their financial situation and save less.

9. Stokvels remain popular
The number of people who belong to more than one stokvel has nearly doubled since 2017 and now stands at 63% with an average monthly contribution of R1 384.

Stokvel money is used mostly for December holiday expenses (57%), groceries (56%), and school fees and education (29%).

The biggest change with regard to stokvel membership since 2021 has been the drop in property stokvels, which fell from 26% to 17%.

10. The Great Resignation is playing out in South Africa too

Despite the country’s high unemployment levels, close to one in four people (22%) have left their jobs since Covid started. Of this number 46% (or nearly half) left voluntarily.

Most of those who resigned did it to be able to develop their skills by changing careers or, in second place, to follow their heart.

*1 505 respondents earning R8 000 and more per month in South Africa were surveyed.

**Dipcheck (n = 401) conducted among respondents earning less than R8 000 per month

To get help with your financial decisions, speak to an Old Mutual financial adviser in your area.