Every year, the South African financial-services sector pours hundreds of millions of rands into consumer financial education. Between mandatory industry contributions and private corporate wellness initiatives, the investment is massive.
Source: Supplied. Nicole Pinto, chief executive officer of the Prescient Foundation.
Yet, if one looks at the hard data, it is difficult to see a true return on this investment. Which raises a critical question: what impact are we measuring?
Despite this influx of education interventions, outcomes aren’t improving where it matters most. In 2025:
- Negative savings: The South African household savings rate hit -1.2%. Which means that South Africans are spending more than they earn, while the global average sits near 10%.
- The gambling surge: Over R1tn was spent on online gambling in a single year.
- The retirement gap: Retirement outcomes remained stagnant, and even entrepreneurial activity was in decline.
While high inflation and low growth are structural hurdles, we have to ask ourselves: Why isn’t the current approach to financial education translating into better behaviour?
At the Prescient Foundation, we realised that teaching "investment products" to people who are still grappling with the basics is like teaching calculus to someone who hasn't mastered addition. Instead, our approach starts with empowering people to make smarter everyday spending decisions before shifting the focus to savings.
Shifting the focus
In partnership with the School of Savings South Africa, we have rolled out a different kind of initiative across six secondary schools in KwaZulu-Natal.
These schools are a combination of fee and non-fee paying schools, but are all broadly defined as operating in communities in need.
Instead of starting with complex asset classes, the initiative focuses on the psychology of the “Three Ds”: Decision, direction and discipline. The 2025 cohort of 724 students revealed a startling reality:
- 82% receive pocket money, yet 77% do not have a bank account.
- Only half track their monthly spending.
- 74% noted that they learn about saving at school, yet the "how-to" remains elusive. In many South African households, open discussions about money management are rare.
We also cannot ignore the reality of child-headed households, where the traditional "financial role model" simply doesn't exist.
Our differentiator is a focus on wise spending rather than just "investments". Every learner receives a workbook and a money box to save just R1 a day. It’s a small, consistent step that proves financial independence isn't about how much you start with; it’s about the habit of delayed gratification.
The ripple effect
The results of this 18-month programme are proving that financial literacy is about more than just money. It’s about confidence, mindset and choices for students – especially young women – in schools.
We are seeing an incredible anecdotal shift: students engaged in these initiatives are gaining the confidence to tackle tougher academic subjects.
These students aren't just learning to save; they are becoming role models for their peers and, crucially, for their parents. They are proving that your economic circumstances do not have to dictate your financial destiny.
If we want to fix South Africa’s relationship with money, we have to stop treating financial literacy as a "crash course" for adults and start treating it as a foundational language for our youth.
True change won't come from explaining the nuances of the stock market to someone in debt; it comes from teaching a Grade 10 learner the power of money. By the time students reach Grade 12, the habit of discipline should already be part of their DNA.
We believe that by focusing on the fundamentals - decision, direction and discipline - we aren't just teaching the youth how to save; we are equipping them to rewrite their own futures.
This is an opportunity to rethink financial literacy – not as a standalone obligation, but as a foundational subject with a meaningful place in the South African curriculum.
