SA youth not money savvy

Debt Busters said far too many young adults are not saving at all and live beyond their means.

Debt Busters said far too many young adults are not saving at all and live beyond their means. Picture: Giovanna Gerbi/EWN.

CAPE TOWN - A local debt counseling firm said on Saturday young South Africans need to be more careful and clever with their finances to avoid becoming over burdened by debt.

Debt Busters said far too many young adults are not saving at all and live above their means on credit.

The firm's Ian Wason said this could lead to problems later on.

"There's a huge gap in financial education that consumers are taking the live for the moment attitude and borrowing money to spend on consumer items rather than saving for their future.

"Our average age for applicant for debt counseling has dropped from 44 years of age in 2008 to 34 years of age in 2013, so consumers are getting indebted at a younger and younger age.

On Sunday the country celebrates national Youth Day, while a recent study found only half of employed South Africans start to save at the age of 28.