By: Natasha Archary
The NedFinHealth Monitor found that 62% of South Africans’ spending equals or exceeds their income, owing to a decline in income and expenses increasing.
Dr Frank Magwegwe, Executive for Financial Wellness and Advisory at Nedbank joins Gugulethu Mfuphi on Kaya Biz, to share the findings of 1 503 South Africans who were surveyed.
The Monitor found that South Africa’s Financial Health score is 53, which is only slightly above the midpoint mark, showing a significant portion of the population still struggling with their finances.
“62% of South Africans say their spending equals or exceeds their income. This is influenced by two main factors:
- 35% say this is because their income has declined
- 76% saying expenses increased
Additionally, 69% of South Africans cannot pay all their bills on time, with 33% of homeowners paying their home loan repayments late in the past 12-months.
Many of the respondents says they are experiencing financial stress, as they struggle to meet their financial obligations.”
Dr Frank adds that a whopping 51% of South Africans shared they do not have sufficient savings for emergencies, or to cover their living expenses for at least 3-months.
“Only 14% of South Africans are moderately confident, with just 11% revealing they are on track to meet their long-term financial goals.
Unmanageable debt is having a significant impact on mental health, with 69% of the people polled sharing they are worried about household debt.”
Dr Frank Magwegwe Executive for Financial Wellness and Advisory at Nedbank
Listen to the conversation on Kaya Biz:
Also read: Discussing the future of computer programming in the age of AI
