Naomi Chabangu: Financial wellbeing consultant at Alexforbes

I grew up in a small village on the outskirts of the Free State. A place rich in community, warmth and resilience, but sorely lacking in access to crucial resources, especially financial literacy. In our village, money was something you earned and spent, but rarely something you were taught to manage. The concept of budgeting, saving or investing was foreign. Financial literacy wasn’t merely out of reach, it was unimaginable. It was a privilege we didn’t even realise we lacked.

The consequences were devastating. A generational cycle of financial dependence, debt and survival-based decision-making took root. People found themselves trapped in the same patterns: relying on parents well into adulthood, living paycheque to paycheque and borrowing just to make it through the month. But it wasn’t due to carelessness or lack of discipline, it was a lack of knowledge. Our parents, often our only financial role models, did the best they could with what they knew. But when their understanding was limited, so too were our opportunities to do better.

I’m Naomi and I come from a disadvantaged community where unemployment is high—but where hope still thrives. I’ve seen first-hand how even in the absence of formal employment, financial literacy can be transformative. The little that people receive – whether through social grants, informal work or family support – has the potential to become the foundation for generational wealth, if only they knew how to manage it.

That’s why I firmly believe that financial literacy should be recognised as an essential life skill. It ought to be included in our education system throughout, from primary school to higher education and part of the onboarding process in the workplace. Imagine a South Africa where every child grows up with a clear understanding of how to budget, how compound interest works, how to prepare for unexpected expenses and how to make informed financial decisions. Imagine a generation of young adults navigating financial challenges not through costly trial and error, but with confidence and knowledge gained from early guidance.

This kind of education must be available for everyone. Financial advisory services can be made available, through government and private sector partnerships. With structured guidance, individuals can be freed from the grip of financial anxiety and dependency. Mandated Retirement Benefit Counselling, available to members of retirement funds on joining or leaving funds, is a good starting point but people who do not belong to funds also need access to financial information.

Importantly, we must not overlook the emotional impact of poor financial decisions. As a financial adviser, I see it every day – money troubles lead to stress, anxiety, depression and fractured relationships. Financial instability bleeds into every aspect of a person’s life. When your finances are in chaos, it feels as if everything is unravelling.

Of course, financial education alone won’t change everything overnight. But it plants the seed – a seed of awareness, discipline and future planning. Ignorance is not just a disadvantage, it robs people of their potential and dignity.

We must address the root cause – lack of knowledge. Knowledge brings structure. Structure enables strategy. And strategy paves the way to saving, investing and long-term growth. But how can people plan for the future when they’re unaware of the options available to them today?

Financial literacy is the cornerstone. With it, we lay a foundation upon which future generations can build. The first generation learns it, the second applies it and the third perfects it.

It’s time for South Africa to break free from its dependence on credit and loans and instead cultivate a culture of intentional wealth-building. A shift that doesn’t start with money, but with understanding.

So, let us teach, share and empower – because financial freedom is not defined by how much you earn, but by what you know and how wisely you use it.

ENDS