Experts Say Financial Literacy in Schools Is Key to Breaking the Cycle of Debt

As the cost of living continues to climb and debt levels rise, financial experts are calling for personal finance education to be introduced in South African schools. According to the Financial Sector Conduct Authority (FSCA), only 49% of South Africans are financially literate – a statistic that experts say reflects a national crisis in money management.

Lytania Johnson, CEO of FNB Personal Segment, says it’s time to get serious about teaching financial literacy from an early age.

“How often did our parents sit us down and talk about budgeting, interest or inflation? Not enough. We need to build financial competencies early in the education journey,” she said.

FNB’s own consumer education data reveals that many South Africans face real anxiety when dealing with finances. This anxiety, compounded by a lack of knowledge, often leads to poor financial decisions and long-term consequences.

The Impact on Vulnerable Groups

Johnson also noted that financial illiteracy is disproportionately high among women and under-educated communities.

“While we’ve made strides in addressing inequality, financial education gaps still exist. Vulnerable groups, especially women, are at greater risk of falling behind.”

This echoes concerns from youth finance advocates like Bonga Khumalo, who argue that without targeted financial education, cycles of poverty and dependency will continue.

Misinformation on Social Media

Another growing concern is the role of social media in spreading financial misinformation. FNB’s Consumer Education Programme Manager, Dhashni Naidoo, warns that while digital platforms have broadened access to information, they’ve also become breeding grounds for misleading financial advice.

“We’ve seen how influencers on social media give unverified advice that can do more harm than good. We must ensure people know where to find accurate, trustworthy information.”

The Reality of Payday Pressure

FNB data also shows a troubling pattern: many South Africans spend about 80% of their salary on payday just to cover debts and expenses, leaving little to nothing for savings or future planning.

The Case for Curriculum Reform

Experts are in agreement: integrating financial literacy into the national school curriculum could be a powerful step toward building a more financially resilient population.

Whether it’s budgeting, understanding credit, saving, or simply knowing how to ask the right financial questions, early education could empower the next generation to make smarter choices.

“Financial literacy is not a luxury  – it’s a necessity,” Johnson concluded.

{Source: SABC News}

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