---
title: "Young South Africans are more confident about their financial destinies, reveals Sanlam index"
description: "Financial literacy, income levels and mental wellbeing all play significant roles in your relationship with your money, the latest Sanlam Financial Confidence Index shows."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "PERSONAL FINANCE"
author: "Neesa Moodley"
author_url: "https://www.dailymaverick.co.za/author/neesa-moodley/"
canonical_url: "https://www.dailymaverick.co.za/article/2024-07-29-young-south-africans-are-more-confident-about-their-financial-destinies-reveals-sanlam-index/"
published: "2024-07-29T08:05:33"
updated: "2024-07-29T00:43:37"
lang: "en-ZA"
word_count: 528
---

# Young South Africans are more confident about their financial destinies, reveals Sanlam index

> Financial literacy, income levels and mental wellbeing all play significant roles in your relationship with your money, the latest Sanlam Financial Confidence Index shows.

By Neesa Moodley · Published 29 July 2024, 10:05 SAST · Updated 29 July 2024, 02:43 SAST

## Key points
- Financial confidence is strongly linked to education, income and employment, with Millennials and Gen Z leading the charge in taking control of their financial destinies, as South Africans of all ages and backgrounds embrace money talk to improve their financial literacy and wellbeing.
- Education, income and employment crucial for financial confidence, says Sanlam expert Sipho Mncwabe.
- Millennials and Generation Z show high financial self-determination scores in Sanlam Financial Confidence Index.
- Money conversations breaking taboo, South Africans eager to pursue financial learning.
- Dr Mavis Mazhura advises basics like setting goals, budgeting, and seeking professional guidance to address financial anxiety.

## Content

Sipho Mncwabe, a Sanlam regional executive FCI expert, says it is consistently evident that education, income and employment are major contributors to confidence, affecting every aspect, from resilience to wellbeing.

“Low-income earners are often trapped in a cycle of survival behaviours. When you’re struggling to make it to month-end, you become preoccupied with the present, with limited capacity to look to the future,” he says.

However, the younger generation — Generation Z and Millennials, born between 1997 and 2012; and 1981 and 1996, respectively — had the highest financial self-determination scores in the latest Sanlam Financial Confidence Index.

Financial self-determination refers to how proactive and committed you are to achieving your financial goals.

Millennials are more sure of their ability to manage their finances as they develop their skills to increase their income. They also build wealth while paying off debt.

A Generation Z respondent in the study alluded to the unemployment crisis facing many young graduates, saying: “I have friends and relatives with university degrees, and they cannot find formal employment, so I am not even trying to look for a job. I am hustling in many spaces and I am able to live off that.”

**Read more:**[How young South Africans are hustling to beat the cost-of-living crisis](https://www.dailymaverick.co.za/article/2024-07-24-younger-consumers-are-hustling-to-beat-the-cost-of-living-crisis/)

#### **Money conversations boost knowledge**

Talking about money has been a taboo topic for generations, and ignorance has not always been bliss.

“There is also a fear of judgment — fear of being deemed incompetent — so people tend to exaggerate their knowledge,” said international behavioural science specialist Dr Mavis Mazhura.

“Individuals also have a psychological need for independence, so they want to make their own decisions, thereby overstating their knowledge of products even when they don’t trust their abilities.”

One of the positive outcomes evident in the study is that South Africans across all generations and demographics are eager to pursue financial learning. Sixty-nine percent of South Africans said they continuously built their skills to increase their earning power, while 56% said they believed their personal finance competencies were increasing each year.

Only 33% of South Africans did not feel self-conscious talking about money. However, there was a general movement toward more openness about finances. Sanam Naran, a psychometrist, psychologist and featured expert in the Sanlam FCI, believes this is a healing of intergenerational trauma.

“The more we can talk about our situations, lived experiences and challenges, the less shame we have and the more we are able to live fulfilling lives,” she said.

Mazhura recommends going back to basics to address anxiety about the future.

“This includes setting financial goals, budgeting, tracking spending, delaying gratification and limiting impulse spending, living below your means, having an emergency fund, limiting debt, learning about finances and seeking professional guidance,” she said.

She adds that fear can work in one of two ways — it can either be a stumbling block preventing you from moving forward or a motivating factor pushing you forward.

“The key is tapping into your ability to self-regulate, which is a learnable skill. You can build your emotional intelligence and then use your fear as the fuel to get your financial goals on track,” she said. **DM**