During turbulent times, like an election year, it's all too easy to lose sight of what truly matters, particularly for low-income workers in South Africa. While we cannot predict the outcome of the upcoming national election, we can help our blue collar workforce to focus on the things that are within their control, such as keeping the right perspective regarding finances.
Time Magazine reports that this year, more than half the world’s population will go to polls - 4.2 billion citizens across approximately 65 countries. For low income workers and all South Africans alike, voting gives us the power of choice. Low income earners vote for better employment conditions and opportunities. And, by voting, they have an opportunity to impact decisions made around unemployment benefits, labour laws. They’re voting for a better now and a better future.
It’s easy to be swayed by the promises made by political parties during an election year, and the top two concerns for South African voters this year remain bleak economic conditions and high unemployment. But, history is a great teacher and chances are that it's going to get worse before it gets better for South Africans. Every political party promises voters increased jobs and better living conditions for all, with good reason. In South Africa, the economy has created less than one new job for every four entrants to the labour market in the past 15 years.
All the political parties have prioritised jobs in their election manifesto. The proposed solutions range from relaxing labour laws to make it easier to get rid of non-performing workers, implementing specific educational and skills based programmes targeted at job creation in rural and township areas, creating state-funded work opportunities, aligning the education system with industry needs and the establishment of a Basic Income Grant.
Every political party vows to put the workers first. We’d like to propose that increasing financial literacy levels among low income workers in South Africa is one of the ways in which the government and private sector can do this.
At Picsa, we believe that the head, heart and hands principle is the key that unlocks a better financial future for low income workers in South Africa. We believe that, no matter the outcome of the upcoming elections, increasing financial literacy among low-income workers can positively impact their long-term financial stability and growth. Here’s how:
Better financial decision making: understanding concepts like budgeting, saving, investing and debt management means that individuals can make better choices that align with their own goals and priorities which will lead to better financial outcomes over time.
Increased savings and building up assets: if individuals are financially literate, they are more likely to prioritise saving, having an emergency fund available for unexpected life events and to plan for retirement and education. These assets build a foundation for long term financial security.
Reduced debt and financial stress: when individuals understand the factors affecting their credit, they are more likely to avoid excessive borrowing, negotiate better terms, and pay off debt efficiently.
Improved employment and career prospects: employers value workers who demonstrate financial responsibility, and financial literacy can empower individuals to pursue further education and training opportunities, leading to increased earning potential.
Generational impact: the positive domino effect goes beyond individual beneficiaries and extends to families and communities. Financially literate individuals have the opportunity to pass their knowledge and values on to future generations and in so doing, break the cycle of poverty.
In short…
Employers can help their low income workers stay focused on the long-term goal of achieving financial freedom by creating a chain reaction of good habits such as saving, investing and getting out of debt, regardless of the outcome of the upcoming elections.
Remind them that they will be rewarded for their patience in the form of a better quality of life, less stress and a brighter future for their families.
Help them keep their focus on things that they can control, like avoiding taking on new debt, diligently paying off existing debts and continuing to save rather than worrying about things they cannot control.
At Picsa, we advocate for the low income worker’s finances. We advocate for their financial futures because we believe that all South Africans should have access to affordable financial products. We tackle the financial needs of South Africa’s majority labour-intensive workforce through our value-for-money products, practical education, and meaningful rewards. If you’re keen to join us on this mission or if you simply want to find out more about us, please visit our website at www.picsa.com.