Publications
Partners
Cape Town - There is no doubt that many consumers will again feel the pinch in the latest budget, warned Laurence Hillman, managing director of 1Life.
They will have to deal with rising taxes due to increased spend required to boost the economy.
This will be coupled with consumers' existing expenses, bad debts and the continued costs of managing of their money.
Hillman said many are expecting the impact of the budget to be that consumers will have to be more vigilant than ever in managing their finances.
"However with the recent repo rate increase, rising fuel prices and the arrival of e-tolls, are we fighting a losing battle?" he asked.
For this reason, Hillman said, it is critical that consumers start taking a more active role in understanding their finances.
They must ensure that they are in a position to reduce their expenses and truly start saving for their future.
"Taking that first step is vital. If the basics of financial literacy and wealth protection can be tackled, our country will be in a better position to control its financial future," he said.
"This will ultimately aid the growth of the economy, which is critical to ensure that we remain competitive both in Africa and the rest of the world."
While economic figures indicate that poverty has declined in the last 20 years, inequality has not.
The richest 10% of households still acquire more than half of the national income of SA.
"There are many challenges to overcome, but the most basic one – especially in the face of these rising economic challenges - is for people to become financially literate and understand how to manage their money and get the best value from it," said Hillman.
“Lack of this type of financial literacy culminates in bad money management, indebtedness and ultimately contributes to poverty."
He said now more than ever financial education needs to form a key priority in South Africa.
They will have to deal with rising taxes due to increased spend required to boost the economy.
This will be coupled with consumers' existing expenses, bad debts and the continued costs of managing of their money.
Hillman said many are expecting the impact of the budget to be that consumers will have to be more vigilant than ever in managing their finances.
"However with the recent repo rate increase, rising fuel prices and the arrival of e-tolls, are we fighting a losing battle?" he asked.
For this reason, Hillman said, it is critical that consumers start taking a more active role in understanding their finances.
They must ensure that they are in a position to reduce their expenses and truly start saving for their future.
"Taking that first step is vital. If the basics of financial literacy and wealth protection can be tackled, our country will be in a better position to control its financial future," he said.
"This will ultimately aid the growth of the economy, which is critical to ensure that we remain competitive both in Africa and the rest of the world."
While economic figures indicate that poverty has declined in the last 20 years, inequality has not.
The richest 10% of households still acquire more than half of the national income of SA.
"There are many challenges to overcome, but the most basic one – especially in the face of these rising economic challenges - is for people to become financially literate and understand how to manage their money and get the best value from it," said Hillman.
“Lack of this type of financial literacy culminates in bad money management, indebtedness and ultimately contributes to poverty."
He said now more than ever financial education needs to form a key priority in South Africa.
