'SA is still on the back foot' when it comes to financial literacy

Gugs Mhlungu spoke to Certified Financial Planner, Paul Roelofse.

Listen to their conversation in the audio clip below.

Most of South Africans are financially illiterate.

"National Treasury did a survey in 2021 and it was horrific to find that on their polls 51% of South Africans are financially literate which means that half the country isn't which means we have a long long way to go in terms of just understanding the basics and the financial must-have, the essentials, that it takes for someone to get through their lives on a financial footing."

- Paul Roelofse, Certified Financial Planner 

Roelofse adds that the survey also revealed that only 27% of women in the country are financially literate compared to 33% of men.

"I would just like to advise partners that the next time you have a review with your financial advisor or planner, make sure both partners are there. I think that that's been a very successful strategy for planning...I think that's a must-have."  

- Paul Roelofse, Certified Financial Planner 

So what exactly is financial literacy?

Roelofse explains that financial literacy relates to things like budgeting, savings and understanding the concept of banking.

"There are many things to try and understand in the financial universe but what we're trying to do is drill down to the basics to get into an understanding of how to run your money, how you make the money work in the right direction, the hard-earned income that comes into the household every month, where should it be more appropriately allocated. It's not about just earning money and spending it. It's about taking your money to build up a more efficient background or foundation for yourself." 

- Paul Roelofse, Certified Financial Planner 

April is National Financial Literacy Month and Roelofse says there's enough information out there to empower yourself when it comes to understanding financial matters.

"There's no excuse for the lack of information, it's all out there. It's a question of the will to set aside some time and a pathway to keep on understanding - even if it's little bits. You don't have to be a financial whizkid but you do have to have the essentials."

- Paul Roelofse, Certified Financial Planner 

For more financial tips, visit Roelofse's website here. 

Scroll up to listen to the full interview.