Financial Literacy Can Help South Africans Take Control of Money

The FSCA can be reached on 0800 20 3722 and provides financial education resources, consumer protection information and mechanisms for complaints involving financial services.

By David Jacobs

Managing household finances has become a difficult balancing act for millions of South Africans as families stretch their income across food, transport, housing, electricity, debt repayments and other essential expenses while trying to prepare for costs they cannot always predict.

The extent of the pressure can be seen in credit figures. According to the National Credit Regulator (NCR), more than 10.5 million credit-active consumers had accounts in arrears, payment defaults or other negative information on their credit profiles by June 2025, representing more than a third of credit-active consumers.

These conditions make financial literacy an everyday necessity rather than something relevant only to people with large salaries or investments. Understanding where money goes, how credit works and what support is available can give households greater control when financial circumstances become difficult.

Small money habits can make a meaningful difference

Financial literacy begins with practical decisions households make every month. Creating a realistic budget, recording expenses and separating essential needs from optional spending can reveal where money is being lost and where adjustments are possible.

Reviewing recurring expenses can also uncover subscriptions or services that are rarely used, while planning for predictable annual costs can reduce the chances of relying on expensive credit when those bills arrive.

Debt requires particular attention because ignoring repayments can quickly make an already difficult situation worse. Consumers who realise they may struggle to meet their obligations should engage creditors early and explore possible payment arrangements before accounts fall further into arrears.

Responsible use of credit also means understanding interest, fees, repayment periods and the total amount that will eventually be paid, rather than judging affordability only by the monthly instalment.

Financial responsibility needs wider economic support

Households can improve their financial habits, but personal budgeting cannot solve every financial difficulty facing South Africans. Employment opportunities, income security, economic growth and access to skills remain important parts of improving household financial wellbeing.

Government programmes such as the Presidential Employment Stimulus and Expanded Public Works Programme provide employment and income opportunities, while Sector Education and Training Authorities support skills development that can improve people's prospects in the labour market.

Social grants provide another important layer of support for vulnerable households, particularly when families have limited or unstable income and need assistance meeting basic living costs.

Financial education forms part of this wider support system. Initiatives including the National Consumer Financial Education Strategy and the draft National Consumer Financial Education Policy seek to improve people's ability to understand financial products and make informed choices.

The Financial Sector Conduct Authority (FSCA) also plays a role in consumer education and protection, helping financial customers understand their rights and participate more confidently in the financial system.

Help is available when finances become difficult

People experiencing financial pressure do not need to wait until their situation becomes unmanageable before seeking assistance. The NCR provides guidance on consumer rights, responsible borrowing and registered debt counsellors for consumers who need structured help with their debt.

Consumers can contact the NCR on 0860 627 627 or access information through its official website.

The FSCA can be reached on 0800 20 3722 and provides financial education resources, consumer protection information and mechanisms for complaints involving financial services.

People experiencing gambling-related financial difficulties can also seek free and confidential assistance through the National Responsible Gambling Programme, including counselling, support and treatment referrals.

Becoming financially capable does not mean never facing financial difficulty. It means having the knowledge to understand the choices available, recognise problems earlier and make decisions based on their longer-term consequences.

Every household will have different financial circumstances, which makes realistic planning more valuable than trying to follow a single formula. Tracking spending, borrowing carefully, seeking assistance early and gradually building provision for unexpected expenses can create greater financial resilience over time.

Financial literacy ultimately gives people a stronger foundation for making their money work around their priorities rather than allowing financial pressure to make every decision for them. For South Africans navigating a challenging economic environment, that knowledge can become an important investment in personal security, family stability and the future.