Money talks, but
who listens?

“People do some crazy things with money,” wrote Morgan Housel in his book The Psychology of Money. “But no one is crazy. People from different generations… born into different economies, experiencing different job markets with different incentives and different degrees of luck, learn very different lessons.”

In short, how you grew up and the society that you’re from has an unavoidable influence on how you think money works. This observation cuts to the heart of a challenge with which South Africa is grappling. Financial literacy is not only about numbers; it’s deeply intertwined with emotions, experiences, and societal factors.

Last week’s launch by FNB of Fincents (www.fincents.co.za), a free online financial education hub, signalled a strategic move to tackle South Africa’s deep-rooted financial literacy challenges. Fincents is a purpose-driven platform designed to empower individuals with essential money management skills. Grounded in FNB’s research, it also recognises that financial behaviour is shaped not only by knowledge, but also by powerful emotional forces of fear and anxiety that often stand in the way of sound decision-making.

“According to the FSCA, only 51% of South Africans are financially literate,” said personal finance expert Mapalo Maku at the launch. This means that nearly half of our population lacks a basic understanding of critical money matters such as budgeting, saving, debt management, investing, and retirement planning.”

Financial inclusion is not just about having a bank account, said Lytanya Johnson, CEO of FNB’s personal segment: “It’s about empowering individuals to make informed decisions that improve their lives and secure their futures.  

“More than 50% of South African adults are financially literate, which means they have the knowledge needed to make informed financial decisions. However, this also means that approximately 48% of our adult population still lacks this essential understanding.“

The weight of worry

FNB’s research reveals a significant emotional burden carried by many South Africans when it comes to money. Johnson pointed to high levels of anxiety, stress, and worry rooted in the country’s recent economic challenges, including the lingering effects of the Covid-19 pandemic and high inflation. These factors have created a climate where just making ends meet is a daily struggle, leaving little room for long-term financial planning.

The anxiety is compounded by a lack of trust.

“Customers will tell you, ‘I don’t feel safe’. How then will my money be safe?’” said Johnson. 

Individuals often feel vulnerable and uncertain about the safety of their financial resources. Amid ongoing economic instability and social pressures, such fear is both natural and entirely understandable, she said. However, the complexity of financial terminology further exacerbates these feelings. Concepts like ‘loan-to-value’ and ‘interest payments,’ while fundamental, can be daunting for those without a solid financial education.

Dhashni Naidoo, program manager for FNB consumer education, said: “It’s critical for us to speak to people in a language that they understand and that they’re comfortable with.” 

The linguistic barrier creates a sense of exclusion and helplessness, making it difficult for people to engage with financial institutions and products.

Social media’s double-edged sword

The rise of social media has also added another layer of complexity, said Johnson.

“Family and friends have started to step into a space of being seen as providing financial advice. While this may stem from a desire to help, it poses a significant risk. Without proper training, well-meaning individuals may inadvertently spread misinformation, leading to poor financial decisions.

Social media’s emphasis on instantaneous gratification also clashes with the principles of sound financial planning, which often require patience and discipline. The pressure to keep up with trends and portray a certain lifestyle can lead to impulsive spending and a focus on short-term gains over long-term financial health.

Breaking the cycle

Achieving a vision that calls for a cultural shift where having open, honest conversations about money becomes the norm, both within households and across communities. While the challenges are significant, there is reason for hope. 

“We need to actually get a lot more people to understand that financial literacy is critically important to empower us as South Africans to not just solve for security today, but actually for future generations,” said Johnson.

FNB is also focusing on practical strategies to help people overcome their anxiety and take control of their finances. 

“The importance of the basics of budgeting and understanding that every cent you make counts, helping master the fundamentals empowers individuals to establish a strong and lasting foundation for financial stability.”

But building that foundation is only the beginning. To truly stay the course, people need a sense of direction. Setting clear financial goals serves as a powerful motivator, giving purpose and direction to one’s financial journey. 

“Saving becomes far more meaningful when it’s tied to a personal goal,” she said. 

Dreaming of owning a home, securing a child’s future, or retiring with dignity, having a clear purpose turns saving from a mere obligation into an act of hope, love, and long-term vision.

She highlighted the importance of planning for the future and protecting loved ones, referring to a “love letter” to her children, and ensuring their financial security in the event of her passing. 

“I have an investment for my kids, and I have life cover for them, making sure that they are taken care of, because they are my kids,” she said.

The emotional dimension of financial planning is not just about numbers, it’s about caring for loved ones and ensuring their well-being. Responsible credit management is essential. Credit, when used wisely, can be a powerful tool for building wealth and achieving financial goals. However, it can also lead to significant problems if not managed carefully.

Towards a more emotionally intelligent approach

FNB says its new platform, Fincents, marks a meaningful step forward in tackling both the emotional and practical barriers to financial literacy in South Africa. 

Said Naidoo: “True inclusion goes beyond access; it’s about quality: ensuring that people not only have financial tools but also the knowledge and confidence to use them to genuinely improve their lives.”

Fincents aims to deliver quality by offering accessible, user-friendly content that addresses the specific needs and concerns of South Africans.The platform also incorporates storytelling, quizzes, and contextual content to enhance knowledge retention. The approach recognises that learning is not solely a cognitive process; it’s also influenced by emotions and experiences. FNB hopes to create a more positive and empowering learning experience, by making financial education engaging and relevant.

“As an institution that is regulated and committed to providing factually correct information to the market, we think we have an important role to play in ensuring consumers are not being scammed,” said Naidoo. It is important to provide safe, accurate information in a world saturated with misinformation and scams. Fincents seeks to be a reputable source of financial information, building trust and empowering individuals to make informed decisions.””

Looking ahead

FNB plans to expand the platform’s content and features over time, including topics like homeownership, vehicle finance, and cryptocurrency. It also aims to develop specialised content for niche audiences, such as educators and parents.

Said Johnson: “Financial literacy is critical for families, communities, and the broader economy.” 

By empowering individuals to take control of their finances, FNB hopes to contribute to a more financially resilient and equitable South Africa. This requires not only providing access to information but also addressing the underlying emotional and social factors that shape financial behaviour.

*Angelique Mogotlane is content manager of Gadget.co.za, World Wide Worx. Follow her on Bluesky on @angelique31.bsky.social.