Michelle Burger
Head, Heart, & Hands: A Different Approach ...

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?

Head, Heart, & Hands: A Different Approach to Financial Literacy
Liesl Carstens
Conquering Debt, Gaining Financial Freedom

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.

Conquering Debt, Gaining Financial Freedom
Liesl Carstens
Moving the Needle on Financial Inclusion in ...

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.

Moving the Needle on Financial Inclusion in South Africa
Liesl Carstens
Planning for Retirement: Advice for Low-Income ...

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. 

Planning for Retirement: Advice for Low-Income Workers in South Africa
Financial Legacy
Liesl Carstens
Leaving a Lasting Financial Legacy: Building ...

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.

Leaving a Lasting Financial Legacy: Building for the Future

emergency savings

Supporting Low-Income Workers: National Savings Month and How Employers Can Help

Our nation is faced with a challenge: a shockingly low savings rate of just 0.5%. Deloitte South Africa's recent findings shed light on the income households, businesses, and governments save instead of spending in our economy. This indicator reflects the health of our nation's finances and provides insights into future investment trends. However, this data barely scratches the surface. 

Many South Africans need help to keep their budgets out of the red in our current economic climate. The rising cost of staple foods along with the increased costs of everyday living make it especially difficult for most households to survive, let alone save. Sadly, those earning in the low-income bracket, who make up most of the workforce in South Africa, are especially hardest hit as they often rely on debt to make ends meet. Ultimately, the only lasting way to get out of debt is to change the way you think about and spend your money. 

National Savings Month

The Savings Institute of South Africa has designated July as the annual National Savings Month, which provides employers with an opportunity to not only remind cash-strapped employees about the importance of saving but also to provide help that will benefit them both now and in the future.  

Savings month challenges consumers, to strive towards living within their means, and to reinforce positive financial behaviour.  Research has shown that more than 80% of middle-income consumers with monthly earnings between R15 000 and R42 000 have no or limited savings.  You can only imagine how hard it must be for that earning in the low-income bracket to save. 

To help South African consumers during the global financial crisis, consumer protection agencies have come together to encourage a saving mindset. Their goal is to improve the financial health of all South Africans by promoting the habit of saving.

How to support your workers' financial health journey?

As an employer, you can greatly impact and change the course of not only your employees but also their families' lives.  By investing in your employees' financial health, you contribute to their overall happiness, engagement, and productivity in the workplace. 

It's important to consider a holistic approach by incorporating a variety of strategies. Here are some ideas that you can implement to support your workers:

  • Encourage budgeting and financial planning: Provide resources and workshops on budgeting techniques, saving strategies, and financial goal-setting to help employees gain control over their finances. You can invite registered financial organisations like Picsa to help your workers with this and to present an interactive workshop.

  • Offer financial education and literacy programs: Collaborate with financial experts or partner with organisations like Picsa to provide educational sessions on topics such as debt management, investment planning, and understanding financial products.

  • Provide access to financial tools and resources: Offer employees access to financial management apps, online calculators, and resources that can assist them in tracking expenses, setting savings goals, and making informed financial decisions. 

  • Implement workplace savings programs: Establish employer-matched savings programs or retirement plans that encourage employees to save for the future and provide them with a sense of financial security.

  • Offer affordable loan options: Explore partnerships with responsible financial institutions or companies like Picsa to provide low-interest loans or emergency funds for employees facing unexpected financial challenges.

  • Promote employee wellness programs: Recognise the link between financial stress and overall well-being. Consider offering employee wellness programs that address financial health, such as stress management workshops or employee assistance programs.

  • Foster a supportive and inclusive workplace culture: Create an environment where employees feel comfortable discussing financial concerns and seeking advice. Encourage open communication and provide avenues for employees to seek guidance on financial matters.

By partnering with Picsa, a commercial financial health company dedicated to the financial health of low-income workers, you can help reshape the financial trajectory of your employees. Picsa is a partner to employers to help them support their workers’ financial health.

What does Picsa do?

At Picsa, we believe that all South Africans should have access to financial products such as emergency savings, short – and long-term investments, affordable funeral plans, and responsible financial loans. We tackle the financial needs of South Africa’s majority labor-intensive workforce through our value-for-money products, practical education, and meaningful rewards. 

Benefits of Picsa

We’ve been partnering with employers in the agricultural, retail, manufacturing, and hospitality industries since 2012. Our products are affordable and are designed to encourage positive behaviour change. Some of the benefits of partnering with us include:

  • Reduced administration: Picsa has leveraged technology to simplify the contributions and deductions process, thereby lowering the administrative burden on you as an employer.

  • Independent relationships: by letting us take responsibility for your employees’ financial health, the relationships you have built with your teams remain professional.

  • Productive employees: employee productivity will increase because of employees experiencing financial peace of mind, knowing that they are on their way to achieving financial health. Money and debt problems remain one of the leading causes of employee stress, which affects physical, emotional, and mental well-being. When employees feel in control of their finances and are confident in their ability to manage this area of their lives, their overall well-being will improve, translating into reduced absenteeism and higher productivity at work.

In conclusion, supporting your workers' financial health is a crucial investment that can positively impact their lives and your business. National Savings Month presents a prime opportunity for employers to make a difference. 

By partnering with Picsa, you can help reshape the financial trajectory of your employees. Picsa offers affordable financial products, practical education, and meaningful rewards, all designed to encourage positive behavior change and improve financial health. Contact us to learn more about our simplified wealth-creation solutions. 

Together, we can empower your employees to thrive both at work and in life.