Recent studies highlight that third-year SA students, especially women and black youth, have low levels of basic financial education.
Blackbullion South Africa is addressing these issues facing the youth of South Africa by providing actionable and relevant financial education accessible to young South Africans.
Their recent webinar, “The Flipside of the Coin: Youth Financial Wellness in Focus 2023”, explored the data and insights showing just how important financial education and intervention are for the emerging youth of South Africa.
Blackbullion South Africa is leading the way when it comes to providing actionable, relevant financial education to young South Africans. In a recent webinar, the team behind this unique, innovative product explored the data and insights showing just how important this type of intervention is for young people and students.
In light of studies highlighting insufficient levels of financial education among third-year South African students, especially among youth, women, and black individuals. Blackbullion South Africa has stepped forward to address this issue head-on.
Inadequate financial education can lead to misinterpretation of financial information, overconfidence, high debt, poor future planning, and potential bankruptcy, with students making unwise debt choices possibly ending up in a cycle of bad credit that limits their educational and future prospects.
The Financial Sector Conduct Authority’s 2022 survey indicated a predicted 75% household debt-to-income ratio in South Africa by year-end, showing 75% of income being used for debt repayment, a clear sign of over-indebtedness.
This highlights the importance of financial education, especially for groups typically with less financial access or knowledge, such as the young, economically disadvantaged, and less educated.
“It is against this backdrop, that Blackbullion South Africa hosted our insightful webinar, exploring the transformative power of financial education on South African youth,” said Tshepo Kgapane, Partnerships Manager.
The webinar led by Ronell Jordaan, Head of Partners and Projects, Duncan Patrick, Head of Marketing, Tshepo Kgapane, Partnership Manager, and Scott Unwin, Head of Innovation and Operations—unveiled data highlighting the shift in financial behaviours and knowledge acquisition as a result of exposure to financial education.
The webinar analysis is based on self-reported data from over 2500 users on the Blackbullion South Africa platform. One of the most remarkable findings is the increase in financial prudence demonstrated by users following access to Blackbullion South Africa.
The key takeaways highlighted the transformational impact of financial education on individuals’ financial behaviours. Before receiving financial education, only 30% of respondents reported saving money regularly. This figure increased to 40% post-intervention, demonstrating the efficacy of financial education in promoting responsible saving habits.
Likewise, there was a significant increase in the number of individuals who manage their money by setting up a monthly budget, from 41% before financial education to 58% afterwards. This shift indicates the direct role that financial education plays in encouraging disciplined money management.
The impact of financial education also extends to investment habits and asset ownership. With access to financial education, the percentage of individuals investing in shares, stocks, bonds, equities, or cryptocurrency saw an increase from 7% to 11%. Asset ownership witnessed a slight increase from 2% to 3%. Participation in stokvels (community-based savings groups) rose from 12.3% to 15%.
“The data clearly shows the positive shift in financial behaviours resulting from financial education,” said Ronell Jordaan. “We’re thrilled to see that our efforts in providing comprehensive financial education are making a tangible difference.”
When it comes to the sources of financial knowledge, Blackbullion South Africa has carved out a significant niche. After access to the platform, 75% of users cited Blackbullion South Africa as their primary source of financial knowledge, followed by banks (47%), Google, and other financial education courses (35% each).
“We aim to continue empowering individuals with the tools to control their financial future,” added Duncan Patrick. “These insights validate our approach and will shape our future initiatives.”
Blackbullion South Africa remains steadfast in its mission to increase financial education and promote informed financial decision-making. Stay connected for more webinars and educational resources.