The outbreak of the Covid-19 pandemic has affected us in more ways than one. These include the way we view money and our behaviour towards it. South Africans are looking for more control over their money and more flexible ways of managing it. We want to work towards reducing debt and make better financial decisions to cut costs.

The pandemic has taught us to be prepared for anything, even the worst and we can see this in people’s mindsets when it comes to financial solutions. People believe financial planning has become more important, including saving and budgeting plans. They also want to focus on managing and reducing their debt. Recent research has shown that 80% of South Africans believe they should be more proactive about financial planning. [1] This comes as a solution to their top three financial concerns:

1. Saving money

2. Reducing debt

3. Sticking to a budget

While knowing where there needs to be improvement, the majority of South Africans admit to not being able to do these well.

Since the pandemic began, people have made more use of digital banking to make payments online as well as mobile banking, decreasing the use of retail money transfers. There's also been an increase in use of cryptocurrencies, stocks and shares. On the other hand, fixed-notice accounts are as popular now as they were before Covid-19. The same goes for unit trusts, retirement annuities, home loads and vehicle finance. It’s also interesting to see that personal and student loans have decreased in popularity. The same goes for overdraft applications. [2]

To learn more about savings, reducing debt and growing your money, explore MoneyEdge for your own personalised financial planning journey!

As your income or expenses change, revisit your budget regularly. It will help you make the short-term adjustments that impact your long-term financial freedom. To learn more about how best to save for your budget, complete our savings course on MoneyEdge!

[1] Kantar Barometer Wave 5, May 2020, Levers of Growth 2.0 Quantitative Questionnaire, December 2020
[2] Levers of Growth 2.0 Quantitative Questionnaire, December 2020

This information is for general information purposes only and is not legal advice.