Financial literacy is a crucial life skill that impacts mental health, tertiary study experience, and long-term quality of life. Financial freedom is a key component to a life of meaning and fulfilment.
“It is, therefore, crucial for students at all levels to cultivate financial knowledge, as this lays the foundation for better life outcomes and a brighter financial future,” says Leana de Beer, CEO of WaFunda.
“We have seen our financial education programmes realise the significant impact by fully integrating financial literacy into the bursary disbursement process. This adds immense value for the determined young students pursuing higher education in these challenging times,” says de Beer.
Financial knowledge can empower our youth, helping them develop essential money skills, lifelong financial confidence, and understand the importance of saving while studying, even if they have very little money to work with at first.
“It is a crucial component in enabling SA’s youth to pursue their life’s goals and ambitions, whatever they may be. Financial knowledge plays a huge role in attaining an upwardly mobile career trajectory, lifelong happiness and fulfilment, and being able to support a family when needed,” she concludes.
A solid financial understanding will help students to actively minimise debt. According to TradingEconomics.com, the South African debt to income ratio, in 2020, was 77%, which is up from 72% in 2019. This indicates a steady rise in consumer debt.