Sebastien Alexanderson, Head of National Debt Advisors
Money, though often a taboo topic, plays a critical role in daily life, and the way we manage it is often influenced by the practices passed down from previous generations. Many of us grew up observing how our elders handled finances—whether through strict budgeting or impulsive decisions—creating habits that have a lasting impact on our own financial approaches.
As we celebrate Heritage Day, Head of National Debt Advisors, Sebastien Alexanderson highlights the need to break the cycle of negative financial habits and create healthier traditions for future generations.
“Heritage and culture are deeply intertwined with our understanding of wealth, success, and the role we play in contributing to our well-being and that of our family, community, and country,” Alexanderson explains.
He said most of our money habits were learned from our upbringing.
“If budgeting was common in your household, you’re likely to continue that practice. But for many South Africans, money wasn’t openly discussed, and the only lesson passed down was that there was never enough of it—leading to poor financial behaviours.”
Additionally, inherited secrecy around money meant lessons on saving, budgeting, and credit management were often missed.
For instance, in some homes, credit was misunderstood, often treated as free money, when in reality, it’s borrowed money that needs to be repaid with interest. In the latest TransUnion Consumer Pulse Study, 91% of consumers said access to credit was vital for achieving financial goals. Only 38% feel they have sufficient access to credit. “Many of us weren’t taught about the long-term implications of credit agreements or how credit bureaus work.
Alexanderson believes it’s never too late to build new, positive financial habits. “We need to start creating positive financial traditions, beginning with open conversations at home. Talk about money, saving, credit, and budgeting in practical and age-appropriate ways to ensure that future generations are better equipped to manage their financial futures,” he advises.
He shared some thoughtful tips on how you can celebrate your heritage while being financially mindful:
- Monetising Cultural Practices
South Africa’s rich cultural heritage offers opportunities to turn traditional practices into side hustles, from preparing and selling homemade dishes like bobotie or koeksisters, to creating and marketing vibrant traditional attire or accessories. Whether it’s through cooking, crafting, or offering performances or lessons in painting, singing, or dancing, these ventures not only celebrate our heritage but also ensure it thrives for future generations.
- The Power of Stokvels and Burial Societies
Stokvels and burial societies are vital financial traditions in South Africa, serving as community-based savings groups that help members manage significant life events and emergencies. Similarly, burial societies help families cover the high costs of culturally important funerals, ensuring loved ones are honoured without excessive debt. These community-driven schemes continue to play a crucial role in the financial well-being of many South Africans.
- Saving for Lobola
In the current economic climate, the dream of marriage and the tradition of lobola come with a significant financial commitment due to rising costs. “Planning ahead is key,” advises Sebastien Alexanderson, recommending young men create a budget, save consistently, and cut unnecessary expenses to manage the financial strain. By treating lobola savings like any other important goal, and being disciplined in their approach, they can alleviate the financial burden while honouring tradition.
- Financial Planning for Cultural Rites of Passage
In many South African cultures, rites of passage like initiation schools or the Zulu Umemulo ceremony carry deep significance and financial commitments. “Planning for these events is as important as saving for education,” says Sebastien Alexanderson, emphasising the need to save in advance to ensure these milestones are honoured without financial strain.
Alexanderson said Heritage Day offers a moment to not only celebrate our cultural identity but also reassess our attitudes toward money and wealth. “As we gather around the braai fires, I encourage my fellow South Africans to reflect on the financial values we pass on,” says Sebastien Alexanderson. “Our approach to money, wealth, and prosperity should respect our heritage while positioning us for success in the future.”
ENDS
