South Africa’s youth face a financial reality arguably more complex than any previous generation. They’re entering adulthood amid rising living costs and high unemployment rates. For many, the question isn’t just how to build financial stability, but also about how to start.
This Youth Month, the focus must shift from sympathy to strategy. Empowering the next generation starts with financial literacy. We need to provide young people with the knowledge and tools to understand money, take control of their financial choices, and unlock opportunities they may not realise are within reach.
The financial challenges facing our youth
Youth unemployment remains above 40%, and even those who are employed are often underpaid, under-resourced, and carrying financial burdens far beyond their years. Many are supporting extended families or navigating student debt without clear guidance on budgeting, saving, or investing.
At the same time, today’s youth are more digitally connected than ever. They’re exposed to global markets, cryptocurrency hype, and influencers promising quick riches. But without understanding the basics, exposure becomes noise, and confidence can quickly turn to confusion.
What’s needed is not just access, but direction. A framework that helps young people make sense of their financial world, one decision at a time.
Financial literacy isn’t about knowing how to trade derivatives or pick winning stocks. It starts with understanding how to manage a budget, track expenses, and build a savings habit. From there, young people can begin learning about risk, compound growth, and long-term planning.
The sooner these lessons start, the better. A teenager who understands how interest works, both on debt and investments, is far more likely to avoid costly pitfalls and take advantage of wealth-building opportunities later on.
For this reason, financial education must be presented in a relatable, jargon-free, and interactive way. Static textbook lessons won’t cut it. Today’s learners need dynamic, practical tools they can explore on their terms.
Bridging the gap through technology and access
By offering access to global markets in a secure and transparent way, and by delivering multilingual educational resources, we can help ensure young South Africans don’t get left behind in the global financial conversation.
But it’s not just about giving youth the tools. It’s also about meeting them where they are. That means mobile-first platforms, social content that explains market moves in real-time, and resources that reflect their lived experience, not someone else’s theory.
Six steps young South Africans can take today
Whether you’re a university student, recent graduate, or simply looking to get your finances on track, here are four small actions to help you start your financial journey:
- Track Your Spending – Utilise a simple app or a spreadsheet to monitor where your money goes each month. Understanding your spending habits is the first step toward effective budgeting. By categorising your expenses, you can identify areas where you might be overspending. This awareness empowers you to identify and eliminate unnecessary costs, reallocating those funds towards savings or debt repayment and ultimately helping you make more informed financial decisions.
- Start Saving, Even R50 a Month – Begin the habit of saving by setting aside even a small amount, like R50, each month. The key to building financial stability lies in consistency. Consider setting up an automatic transfer to your savings account immediately after receiving any income. Over time, these small contributions can compound, especially when placed in a high-interest savings account or investment vehicle, forming a solid foundation for your financial future.
- Build an Emergency Fund – Establishing a budget for an emergency fund will create a financial buffer against unforeseen expenses. This prevents you from relying on high-interest debt during tough times. Start small, automate your contributions, and consider allocating any unexpected windfalls, such as gifts, to this essential safety net to accelerate its growth.
- Manage Your Debt – If you have existing debts, such as student loans, prioritise paying more than the required monthly amount. This strategy will not only reduce the repayment period but also save you significant amounts in interest over time. Understand that all debt carries costs and requires disciplined management to maintain financial health.
- Open a Demo Account – Familiarise yourself with the financial markets by opening a demo account with a reputable company. This allows you to explore trading strategies and investment opportunities without risking real money. Use this platform to practice buying and selling stocks, forex, or other assets, helping you build confidence and understanding of market dynamics. Take the time to learn about the tools and resources available on the platform to enhance your trading skills.
- Join Free Financial Webinars – Participate in free webinars offered by reputable financial institutions. These sessions cover essential concepts.
We don’t need every young person to become a trader. However, we do need every young person to understand money. That’s the foundation of freedom, resilience, and long-term security. Financial literacy empowers individuals to dream bigger, plan better, and participate fully in a world that increasingly demands economic awareness.
* Israfil is the CEO of CFI Financial Group South Africa.
PERSONAL FINANCE
