By: Khosi Jiyani
The relationship with money is shaped from an early age. Growing up in a household filled with material comforts can lead to taking money for granted, while growing up with shortage can strain a negative money mindset.
However, regardless of our upbringing, the decisions we make as adults often stem from our underlying beliefs about money.
To change our financial situation, we must first change our mindset about money. Financial struggles and anxiety reflect not just the circumstances, but also our innate human tendencies to seek pleasure and avoid pain.
When it comes to discussing financial matters with family, I suggest sharing age-appropriate truths with children. Teaching them the difference between needs and wants early on can foster a healthier attitude towards spending in the future.
One needs to embrace current realities and focus on creating opportunities rather than viewing oneself as a victim of circumstances. There is an importance of realistic financial goals over unattainable dreams.
Recent research from The TGI SA 2022C study highlights the financial challenges faced by South Africans due to job losses, business closures, and the escalating cost of living. A substantial portion of the population (25.1%) is managing to cope with their current income, while 8% have experienced job loss or business closures. The majority (77%) are resorting to strategic shopping tactics to make ends meet, with 31% of 2.6 million full-time employees struggling to afford essentials like food and rent.
The survey reveals that a lack of proper financial planning is a significant factor contributing to financial difficulties among South Africans. Only 21.7% seek guidance from professional financial advisers, while 21% turn to family and friends for financial advice. Merely 2.48% consult professionals for critical decisions on insurance, retirement savings, and investments.
* Jiyani is a clinical psychologist specialising in transformative learning.
PERSONAL FINANCE