Entering the job market for the first time is an exciting milestone for young people, marking the beginning of their professional journeys and financial independence. However, navigating the complexities of personal finance can be daunting.
Financial literacy is not South Africans’ strong suit either: according to the Financial Sector Conduct Authority (FSCA), only 51% of the adult population is financially literate. This is why Anglo American Zimele, in partnership with Absa, provided financial literacy guidance for young participants in one of their tourism & hospitality programmes, focusing on how they can manage their money.
Baby Keamogetswe Makgopela from Rustenburg, for instance, was accepted into Zimele’s Assistant Chef skills programme, and was hired by Silversea Cruises in March 2023. As a result – and with the guidance she received, she was able to save and contribute significantly to minor renovations at her home, providing a better living environment for her family.
Another Zimele alumnus, Molepo Mangweta Molepo (known as Vickey), from Maphethwane in Limpopo, enrolled in Zimele’s Table Attendant skills programme, and in November 2023, her dream became a reality when she boarded a Silverseas cruise ship.
She says the financial rewards were significant. For the first time, Molepo says she couldn’t believe it when she saw that amount of money in her bank account. “I managed to support my daughter for the first time with the earnings from Silver Seas,” she says. Molepo took over the parental responsibilities from her sister, who had been the sole provider for her daughter and the family. “This allowed me to fully embrace motherhood,” she says, and she plans to renovate her mother’s home and buy her own home soon.
“We also realised that the young people on our programme needed more than just job skills and jobs,” says Larisha Naidoo, head of Anglo American Zimele. “They also needed some guidance on how to manage their earnings effectively prioritising the spend of their earnings wisely and saving for a rainy day .”
Some of those top tips are to:
- Follow a regular budget: With a manageable and effective budgeting structure, you can control your money, understand what’s coming in and what’s going out, and avoid reckless spending.
- Maintain a health cash flow: Keep total expenses within your available income and avoid spending money you do not have.
- Start saving as early as possible: Savings is a vehicle for creating wealth, so starting to save as early as possible will really pay off over time.
- Understand everyday banking: Familiarise yourself with banking services, so you can take advantage of benefits including the convenience of debit orders, rewards available in various banking products, and identify saving opportunities like tax-free savings.
- Keep a good credit record: Understand the difference between good and bad credit, and only take good credit. Also limit your spending on credit so you don’t get overwhelmed by debt and get your free credit report from credit bureaus annually to check your credit score and address any anomalies.
PERSONAL FINANCE