Building a money savvy nation through financial literacy

Building a money savvy nation through financial literacy.

South Africans are innovative; there’s no doubt about it. But when it comes to matters related to our financial wellbeing, we tend to take an ostrich head-in-the-sand approach. At Metropolitan we believe knowledge is power, and so want to share important financial literacy skills so that you can enjoy financial freedom.

According to the 2020 Financial Literacy Baseline Study*, a substantial share of South Africa’s adult population is ill-prepared (insufficiently prepared) to make sound financial decisions and have limited resources and skills to understand the complexities of financial matters.

Empowering and activating the financial knowledge and capacity of South Africans, particularly our youth, is central to our responsibility as a business that puts our people first. At Metropolitan, we’re committed to being part of our country’s success story and understand that to ensure the future of our country, we must uplift our communities. Through our partnership with FunDza, an online literacy portal, we’re empowering South Africa’s youth with important financial literacy skills so that they can improve their circumstances through financial education opportunities.

However, we realise that we need to do more. Therefore, we’re taking part in Money Smart Week South Africa - a public awareness campaign designed to promote financial literacy and education - to share a few tips to help you make better choices when it comes to your money.

We often hear that the first step to financial freedom is to have a solid financial plan in place. However, before we can do this, we need to look at how we handle and manage our money through things like having a budget, or managing our debt, also known as financial management.

Alex Ollewagen, Client Solutions Actuary at Metropolitan explains: “Financial planning focuses on how you may achieve your identified future financials goals like buying a house, paying for your children’s education and your retirement. So, in short, financial management centres around how you deal with your current financial situation whereas planning is more future-focused.”

“Without proper financial management you will not be able to achieve your set goals. You need to create a sound foundation now, to enable you to put your financial plans in motion,” he adds.

The most practical way to apply financial management to your day-to-day life is to first set a budget. The more detailed your budget, the better. You must understand where your money goes before you can start executing your plans. The next step is to understand your debt and credit exposure. It is difficult to visualise the future when your current money reality seems dire. Once you have a budget, and most importantly stick to it, with a solid grasp of your debt situation, you are ready to start drafting your financial plan so that you can achieve your financial life goals.

To help you achieve your financial life goals, we offer you a lifelong partnership with a Metropolitan financial adviser who can help you plan for every important life event. As well as help you achieve your financial life goals.

Before you get started, your financial adviser will complete a detailed financial needs analysis with you and then build a plan that will suit your needs.

Here are a few things to think about when mapping out your financial life goals:

Funeral cover

How do you want to be remembered when you die? Many people don’t realise the extensive cost of a dignified funeral. And that not having a funeral plan in place is more expensive than the monthly premiums you’d pay for having one. You can customise your Metropolitan Funeral Plan to meet your specific needs and add benefits that serve you and your loved ones pre and post the passing of a family member. Speak to a Metropolitan financial adviser about the most appropriate funeral plans for you.

Saving and Investment Plans

We often hear that we need to save for our children’s education, a deposit for our dream home, a holiday, or our retirement, having a savings plan is a key component of your financial plan. Whether it’s a short or long-term goal, Metropolitan has a savings plan that can make your goals a reality. But how do you start a savings plan when you don’t even know if you’ll make it to your next payday? We know that the incessant raising cost of living is affecting all South Africans, and even the most dedicated saver is struggling to meet their saving goals. So, we’re asking ordinary South Africans, like you, to share their tried and tested savings tips. Using the hashtag #SisonkeInSavings, ‘words of savings wisdom from Mzanzi.’ You can share your savings advice on our Metropolitan Facebook page and help our communities know that they are not alone.

Life Cover

Don’t forget to protect your income and secure your family’s financial future with a life insurance plan. Having life cover that offers flexibility and value services to allow you to take care of your family’s financial needs when you’re no longer able to, is a vital step in financial wellbeing. Our plans are specifically designed to cover death, disability, and critical illness.

Retirement Plans

We all want to enjoy a comfortable retirement. Whether you invest small amounts regularly, or a lumpsum payment when you can, saving towards your retirement is an important life goal. Let us help you save for this major milestone with one of our retirement plans. Then secure a regular income after your retirement with one of our income plans.

This may all seem overwhelming, but remember, you don’t need everything all at the same time. The most important point is that you start somewhere. Beef up your knowledge about money, planning, spending and overall financial management. Ask questions (no matter how simple) and get money smart with any cash injection you get - start small, with what you can afford, and your financial adviser can help you achieve your financial goals over time and as your circumstances improve.

We all have the right to enjoy dignity and financial freedom, but, capacitating oneself with financial literacy is your responsibility. You don’t have to do it alone. Speak to a Metropolitan financial adviser who can help you establish a financial plan, and then work with you to achieve it.

#TogetherWeCan 

#MSWSA2022