So many individuals work hard every day to earn their keep but struggle to make ends meet, living from hand to mouth without any savings or long-term investments. This is a reality faced by many South Africans, especially low-income workers, where a lack of financial education keeps them trapped in a cycle of poverty.
Financial literacy is about empowering all individuals, regardless of their income, with the tools to make informed financial decisions, set goals, and plan for the future. For low-income workers, this can mean the difference between living in constant financial stress and building a foundation for long-term financial stability.
What if we could change this narrative? What if we could empower low income workers with the knowledge and skills to take control of their finances and provide them with tools and resources to build a healthy financial future and break free from debt and loans?
Debt. It can be a formidable opponent, much like a double-edged sword. In the realm of personal finances, it has the power to pave the way for a prosperous future or injure and burden individuals and their loved ones for a lifetime. Just as a skilled swordsman hones their technique, empowering your employees, especially blue-collar workers, to sharpen their proverbial financial swords will help them improve their financial health.
During March, Debt Awareness Week places the spotlight on consumer debt, and its effects, and acts as a catalyst to start the conversation about personal debt. Debt Awareness Week presents a valuable opportunity for employers to engage their employees about responsible financial practices and how to help them escape the debt trap.
Generally, the use of financial products and services to promote savings and wealth accumulation is slanted towards households with higher incomes. Research indicates that there is still an alarmingly high rate of financial exclusion among the poor.
Financial inclusion is broadly defined as all persons having timely and fair access to appropriate, fair and affordable financial products and services such as bank and savings accounts, loans and insurance products, among others.
Anxiety about money is a topic that keeps South Africans awake at night. This, and other insights, were revealed in a survey conducted earlier this year by one of the country’s largest financial services providers. Among others, the survey indicated that only 36% of South Africans currently have a retirement fund. Furthermore, studies show that many South Africans will have to rely on social grants as part of their retirement to maintain their current lifestyle.
The reality is that most South Africans are not planning for retirement financially. For low-income workers, the situation is even more challenging as limited disposable income provides little room for savings, let alone saving for long-term goals such as retirement.
Thian De Beer, Chief Executive Officer (CEO) of the Picsa Group, gives some perspective on the current state of retirement specifically for low-income workers and shares how starting small with Picsa can make responsible saving and retiring possible for all South Africans.
As we go through life, it's common to contemplate the impact we'll have when we're no longer around. "Legacy" typically brings to mind abstract concepts like values, principles, and reputation. However, it's crucial to also consider the financial aspect of our legacy. This includes passing on wealth, assets, and resources to future generations, ensuring that our loved ones can benefit from our financial security and dedication even after we've passed away.
As we go through life, it's common to contemplate the impact we'll have when we're no longer around. "Legacy" typically brings to mind abstract concepts like values, principles, and reputation. However, it's crucial to also consider the financial aspect of our legacy. This includes passing on wealth, assets, and resources to future generations, ensuring that our loved ones can benefit from our financial security and dedication even after we've passed away.
