Economic reprieve lifts confidence, but money habits stubbornly stand still

The latest Sanlam Financial Confidence Index (FCI) shows a nation that feels more in control of its finances, yet still struggles to turn confidence into consistent, long-term action. South Africans’ financial confidence has reached its highest level in three years, rising from 47 in 2024 to 53 (out of 100) this year, according to the 2025 Sanlam FCI.

Kele Boakgomo, a behavioural scientist and the CEO of behaviour tech platform Yugrow, says there seems to be a collective shift from survival mode to control.

“Financial stress has forced new habits – people are protecting what they have, prioritising stability and learning to manage uncertainty. What we are seeing now is inflation stabilising, salaries rising and an easing in interest rates. You could call it an economic reprieve,” she told Daily Maverick.

Lee Hancox, head of channel and segment marketing at SanlamConnect, agreed. She pointed out that the growth in confidence might be reflecting a broader economic shift, as the prime lending rate has dropped from a peak of 11.75% in 2023 to 10.25% in 2025, easing debt pressure and unlocking more disposable income.

“Real salaries are rising for the first time in seven years, and inflation is stabilising, giving households a renewed sense of control. However, gaps remain, and we’re still seeing a worrying lag in financial wellness,” she said.

The wellbeing gap

Despite progress, emotional scars from years of volatility persist. Most South Africans still feel stressed about their daily finances (74%) and unhappy with their financial situation (72%), and two-thirds feel uncomfortable talking about money.

A confident nation – on paper

The problem with the FCI numbers is that although optimism is growing (see the infographic above; 2024’s numbers are in brackets), behaviour hasn’t yet caught up: fewer than half of South Africans have written down their long-term goals or track them, and only 42% trust their own financial abilities.

In addition, financial wellbeing (32) still lags well behind financial self-determination (61) and resilience (58).

In terms of shifting the needle on positive financial actions, Boakgomo and Hancox suggested three behavioural nudges:

1. Financial goal setting: “This is a great starting point. You could set weekly or monthly financial goals. When goals are visible, broken into smaller timeframes and celebrated through progress feedback, such as ‘you’re 40% to your emergency target’, they become part of daily life,” said Boakgomo.

2. Digital engagement: “We live in a world where most digital experiences are being designed for engagement, and the banks have so much data they can use to shift the way people engage with their money,” Boakgomo said. In line with this, she said the next evolution is likely to come from tools that make progress visible and habits automatic. “When saving, tracking and paying down debt become part of daily life, confidence turns into capability.”

3. Talk about money more openly: Consumers need to lower the barriers or emotional resistance to conversations about money. Hancox said these feelings often stem from inherited money narratives. “Our family circumstances shape deep-seated beliefs about money – beliefs that linger long after our situations change. Many people still carry the fear or shame they grew up with. We must start having real, open conversations and normalise money talk as an act of empowerment. Awareness is the first step; advice is the next.” DM

This story first appeared in our weekly Daily Maverick 168 newspaper, which is available countrywide for R35.