Money may not come with a step-by-step guide, but financial literacy is the next best thing. It’s not just about saving and budgeting—it’s about taking control, building lasting wealth, and securing a future for generations to come.

In South Africa, financial literacy plays a critical role in retirement planning, yet only 24% of South Africans actively plan for retirement. The rest are left depending on government social grants, creating long-term consequences for future generations. With just 51% of South Africans financially literate, millions are navigating their finances blindly. This is not just a crisis; it’s a call for change. The real gap isn’t income—it’s knowledge.

Why financial literacy matters

Financial literacy is crucial for unlocking financial freedom. Here's why:

• Breaking the cycle of poverty: Teaching financial literacy helps future generations manage money and build wealth, offering a path out of financial struggles.
• Reducing debt and stress: Understanding finances and investments can help alleviate debt and provide financial independence.
• Boosting economic growth: A financially literate population contributes to economic growth, job creation, and business success.
• Encouraging smart investing: Knowledge of investments empowers individuals to grow wealth beyond their salary, addressing financial inequality.
• Breaking barriers to wealth: Financial literacy opens up diverse investment opportunities, enabling everyone to take control of their financial future.
  
  

Bridging the gap for future investors

The government and private sector have been working to improve financial literacy in South Africa, through various initiatives, policies, and educational programs. Organisations like Junior Achievement South Africa (JA South Africa) offer training on financial health, while universities are incorporating financial literacy into their curriculums, focusing on the youth—the next generation of investors.

Globally, initiatives like World Book and Copyright Day (April 23) and International Children’s Book Day (April 2) highlight the importance of literacy, which is the foundation for financial education. By promoting a culture of reading and learning, we equip individuals with the knowledge to make better financial decisions and shape their futures.

SV Capital’s mission and contribution

At SV Capital, we know that financial literacy is not just about numbers; it’s about opportunity. We believe it’s the key to building wealth and achieving financial security. When people understand how to manage and grow their money, they can make better financial decisions that impact their future.

Our mission is to make investing easier and more accessible for everyone—not just a select few. We’re committed to democratising investments by making them understandable and accessible to all. By providing the right knowledge, tools, and opportunities, we empower South Africans to take control of their financial future, build wealth, and create a secure tomorrow for themselves and their families.

The financial reality check

Here’s a snapshot of the financial landscape in South Africa:

• South Africans owe over R1.8 trillion in household debt (as of 2023).
• 23% of South Africans between the ages of 18 and 34 have debt that is more than 90 days overdue.
• 19% of South Africans report spending more than their income in the past year.
• 56% of South Africans say they couldn’t cover an unexpected R10,000 emergency with savings.
• 60% of South Africans say they don’t think their retirement savings are on track.
• 65% of South Africans say money is a significant stressor in their lives.
• 32% of South African teens don’t understand the difference between credit and debit cards.
• Women save 68 cents for every R1 men save.
• Women are less likely than men to be offered financial education in South Africa.
• Only 24% of South African millennials understand basic financial topics.
  
  

These stats aren’t just numbers—they are a call to action. Financial literacy is the key to breaking the cycle and building a stronger, more secure future.

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