Financial education can make SA’s youth more optimistic

SA’s young people are increasingly losing hope in the promise of a better future, as highlighted in recent news reports and research studies. While this challenge requires a multifaceted response, Youth Month provides an opportunity to focus on one of the more accessible areas for impact — financial education — arguably one of the main barriers to young South Africans’ personal development.

Democratic societies have traditionally aspired to a middle-class way of life known as “the American dream” — earning enough to own a home in a safe neighbourhood to raise a family. Though SA has its own unique challenges, “the South African dream” — a promise of the post-1994 democratic era — was not that different. However, this dream is fading for the youth.

There are two main reasons for this. Our sluggish economy has not delivered the growth necessary for young people to be meaningfully employed in large numbers. Second, they are failing to accumulate wealth-building assets and have resorted to chasing false dreams of instant riches. 

That young people live in challenging times is borne out by the following facts and figures:

• Stats SA recently reported that SA’s unemployment rate rose to 32.9% in the first quarter of 2025. Youth unemployment rose to 46.1%. Of the 10.5-million people aged 15 to 34 who were available and willing to work, 4.8-million were unemployed.
  
  
• Even graduates are struggling to find jobs. A 2023 Statista survey found that unemployment was highest (38.6%) among people without a matric but was 9.6% among graduates and 20.6% among those with other tertiary qualifications.
  
  
• A large proportion of young people have lost faith in the democratic process and are not voting in elections. Only 4.4-million of the 11-million South Africans aged 20 to 29 registered to vote in last year’s election, according to the Electoral Commission of South Africa. Turnout on the day was low, at 58.6% of registered voters overall.
  
  
• Home ownership is increasingly seen as unattainable. Market research firm Ipsos found that while 92% of South Africans agree that everyone has a right to own their own home, 72% believe it is harder for their generation to buy or rent a home compared with their parents’ generation. The survey found that almost half of South Africans are concerned about their ability to pay rent or mortgage repayments.
  
  
• Many working young black South Africans have the added responsibility of “black tax”, the financial support to parents and other family members who are in a less fortunate economic position than themselves.
  
  
• Financial literacy is low, even among university students. A recent survey by youth financial skills portal WaFunda revealed that third-year university students showed alarmingly low levels of financial education. Unpaid store credit and gambling were cited as key indicators of this trend. Meanwhile, research by 1Life Insurance found that more than half of working young people don’t know how to build a financially stable future and fewer than 30% use a monthly budget.

So, where do we go from here? 

A first step towards shifting the narrative is to help young people understand the value of long-term thinking and investment when it comes to managing money. In a society where instant gratification has become the norm, especially for those living in survival mode, it’s understandable that many are focused on meeting today’s needs rather than planning for tomorrow. This short-term mindset often leads to rising debt, and young people are especially vulnerable to the aggressive marketing tactics of betting companies and unsecured credit providers.

But the issue goes deeper. For many young South Africans, the real challenge is not a lack of ambition, but limited access to meaningful economic opportunities. Entrepreneurship is often touted as the solution, but without the right support systems such as career guidance, mentorship, funding mechanisms and financial education, turning an idea into a sustainable business remains out of reach for most.

While addressing financial literacy is not a silver bullet, it remains a critical building block in a broader strategy to empower young people to participate meaningfully in the economy, whether through employment, innovation, or enterprise. As we reflect on Youth Month, we must prioritise initiatives that equip young people with the knowledge and tools to take control of their financial futures.

We need to actively encourage young people to be more intentional about their futures and to consider options such as entrepreneurship as a means of economic participation. They must also be adequately supported in these efforts. Encouraging them to make decisions that will lead to a better tomorrow is key to shifting the current climate of pessimism and fostering a more hopeful, empowered outlook.

Therefore, as we reflect on this Youth Month and look towards building a resilient and sustainable future with young people at the centre, we have an opportunity to shift the conversation. While systemic change is essential, accessible mentorship programmes and financial education offer concrete and actionable tools to empower youth to make better decisions in a challenging economy, to empower young people to think long-term and craft sustainable futures for themselves.

This article was sponsored by Old Mutual.