The second instalment of Sanlam’s Financial Confidence Index takes ‘South Africa’s temperature’ in terms of the nation’s shared financial confidence. It reveals a nation preoccupied with present stresses, with nearly half the population having a below average – or lower – Financial Confidence Index (FCI). South Africa’s overall FCI remained stable with an index score of 47 out of 100, with slight improvements in Financial Self-determination and Financial Wellbeing.

Mariska Oosthuizen, Chief Marketing Officer at Sanlam, says, “Our research partner, Africa Response, surveyed 1,610 individuals to index three key components of financial confidence: Financial Self-determination (FSD), Financial Resilience (FR) and Financial Wellbeing (FW). What stood out was the astuteness and optimism of Gen Z, which had higher FSD and FR than other generations, possibly due to digital savviness opening access to information. We have a real opportunity to shift financial inclusion in South Africa through relevant financial education that empowers a younger generation that’s already entrepreneurial-minded and investing-oriented.”

Key findings

• FCI remains stable but 1 in 3 people still have a low or very low FCI
• Gradual improvement: Myriad factors, including younger generations’ understanding of their financial goals, drove positive shifts in Financial Resilience (improved from a collective score of 49 in 2023 to 50 in 2024) and Financial Wellbeing (up from 27 to 29)
• Generational divide: Gen Z (born 1997-2012) and Millennials (born 1981-1996) exhibited the highest Financial Self-determination (FSD) scores, likely due to their digital savviness enabling greater access to information
• Income disparity: A strong correlation exists between income and financial confidence. Individuals earning below R8,000 per month displayed significantly lower scores across all indices.
• Genders equally confident: Men and women had the same FCI score of 47, although women were slightly more likely to be anxious over monthly finances. Women were also more inclined to write down their financial goals and pursue learning to amplify income. This is positive given the importance of women as the heads of many single-parent households.
• Education changes confidence outcomes: South Africans with up to a matric (Grade 12) certification have less financial confidence than the general population. They are also less likely to be able to handle a setback and tend to be unhappy with their current financial situation and concerned about future investments, which drives down their financial wellbeing.
• Knowledge gap persists: Despite expressing a willingness to learn, many respondents lacked a defined plan or system for achieving financial goals. Just 36% were tracking their financial goals.
• Self-reliance and hustle: An entrepreneurial spirit was evident, with many focusing on skills development and income generation. This "hustle" mentality was particularly prevalent among Gen Z and Millennials.
• Struggles with setbacks: Just 2 in 5 people agreed that they could withstand a financial setback or achieve financial freedom. Most people appear to live payday to payday. Just 34% had insurance that adequately covered their financial risks and only 40% had an emergency fund or savings.
• Debt acceptance: A growing sense of acceptance around living with debt was observed, and 44% of people said they had a debt repayment plan in place – up 2% from 2023
• Financial anxiety:Despite some progress, anxiety about future finances remains a significant concern, particularly for lower-income earners
• Let’s chat: There was slightly more willingness to discuss financial matters openly, which Sanlam is hoping to amplify with their latest brand campaign, The Dirtiest Word , which encourages courageous financial conversations

Money talk matters

Just 33% of South Africans did not feel self-conscious talking about money. However, there was a general movement toward more openness around finances. Sanam Naran, Psychometrist, Psychologist, and Featured Expert in the Sanlam FCI, believes this is almost a healing of intergenerational trauma. She says, “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.”

Oosthuizen adds that this is the root of Sanlam’s The Dirtiest Word campaign which encourages people to talk about the dreaded ‘F word’ – finances – to be empowered to make better decisions, have stronger relationships, and improve their mental wellbeing.

Oosthuizen concludes that the Index’s purpose is to deep dive into the factors undermining confidence to understand what kinds of interventions will make the most impact. “Sanlam’s DNA is to empower all Africans to be financially confident, secure, and prosperous. We have a real opportunity with Millennials and Gen Zs to change our nation’s narrative. We need shared commitment to meet younger people with the support they’re asking for.”