As South Africa marks Money Smart Week South Africa (MSWSA), taking place from 24 to 30 August, the message is clear: financial literacy goes beyond understanding money – it’s about unlocking opportunities, reducing stress, and creating a more secure future.
Financial knowledge gives people the confidence to make better choices, whether it’s escaping a debt cycle, building savings, buying a home, starting a business, or retiring with dignity.
Also see: How to navigate finances as a couple
Yet many South African households struggle with their everyday finances, as highlighted in JustMoney’s large-scale survey, Money & Me:
- 61% worry about income and find it difficult every month to make ends meet
- Only 16% have sufficient savings to cover a R10,000 emergency
- Just 9% save the recommended 10% or more of their monthly income
- 38% spend more than 40% of their after-tax income on debt repayments
- 43% financially support four or more people
“These sobering findings show why improving financial literacy is so important,” says Sarah Nicholson, head of customer experience at JustMoney.
“Making smart, informed choices starts with understanding the basics. Small improvements in managing money can have a significant impact.”
In support of this year’s MSWSA theme, “Money Smart: The Power of Possible”, JustMoney offers 15 practical ways to master money basics:
1. Know where your money goes
Track your income and expenses for a month to see exactly where your money is being spent.
2. Create a realistic budget
Separate needs from wants. Prioritise essentials such as housing, food, and transport, include savings, and adjust your purchases if you are spending more than you are earning.
3. Pay yourself first
Consistency matters – save something every month, even if it’s only a small amount.
4. Build an emergency fund
Aim to save enough to cover three months’ worth of essential expenses. This reduces the need to borrow when life throws you a curveball.
5. Understand the true cost of debt
Before taking out a loan or using credit, calculate the total amount you’ll repay, not just the monthly instalment.
6. Learn to read financial documents
Take time to understand bank statements, insurance policies, loan agreements, and investment documents before signing anything.
Also see: Storm-proof your finances: 14 financial tips for extreme weather
7. Know your credit score
This number shows lenders how well you’ve managed borrowed money and how likely you are to repay future debt. A healthy credit report improves your chances of qualifying for affordable credit when you genuinely need it.
8. Compare before you commit
Whether you’re choosing a bank account, insurance policy, or cell phone contract, compare features, fees, and value rather than simply opting for the cheapest option.
9. Understand the difference between saving and investing
Saving is generally for short-term needs and emergencies, while investing is designed to build wealth over the longer term.
10. Start investing early
The earlier you begin, the more time your money has to grow through compound returns ‒ earning interest not only on the money you save or invest, but also on the interest you’ve already earned.
11. Protect yourself from scams
Never share passwords or one-time PINs, and steer clear of offers that promise easy money or ‘guaranteed’ high returns.
12. Keep learning
Read reputable articles, attend free financial education webinars and events, and ask questions as needed.
13. Teach your family about money
Children who learn good money habits early are more likely to become financially responsible adults, while conversations about money can benefit the whole household.
14. Set clear financial goals
Whether it’s paying off debt, buying a home, funding your children’s education, or retiring comfortably, goals make it easier to stay motivated.
15. Consult a financial adviser
A qualified adviser can help you create a personal plan and make informed decisions that support your long-term financial goals.
“Every financial skill you develop, whether it’s budgeting or understanding credit, gives you more options and greater control over your financial future,” says Nicholson.
“This MSWSA, challenge yourself to learn a new money skill, ask an important financial question, or make one positive change. Small steps taken this week can lead to more stability and greater peace of mind for you and your family.”
Also see: Expert advice: How to become a minister of your finances
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