STEPHEN CRANSTON: Why high-flyers can be ‘poor’ too
Tertiary education is no guarantee of wellness, as 44% of graduates are financially unwell
It is often thought that there is a linear relationship between the money you earn and your financial health. But it is surprising how many people on low incomes manage to keep the show on the road, and how many in high-income brackets are drowning in debt. The valuable Momentum/Unisa Household Financial Wellness Index takes account of this. Instead of looking at traditional living standards measures, or the anachronistic racial group classifications, it divides the population into four groups: the financially distressed, financially unstable, financially exposed and financially well. The names are self-explanatory. The distressed have deeply rooted problems and will need major outside assistance. For a business such as Momentum — which serves this market through its Metropolitan product range — there is a high risk of defaults on fixed payments such as insurance premiums, or clients resorting to loan sharks to get through the month. The financially unstable can probably pay their w...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.