The importance of financial planning for young people

MORE young South Africans are prioritising wellness through therapy and fitness, but they continue to overlook financial well-being, and it is costing them more than they realise.

- RORY BRACHNER

Money stress spills into every part of life, from relationships to mental health, yet many young people build their early careers without building a financial plan

According to a Sanlam report, 57% of South Africans cite financial stress as the top factor affecting their mental health, with 18-24-year-olds the most vulnerable. Yet, despite South Africa’s high youth unemployment rate, there are 20.9 million working young people aged 15 to 34 who still face financial challenges due to limited financial literacy. The 1Life Youth Generational Wealth Survey found that while 80% believe they can build wealth once employed, only 30% have a monthly budget, and half don’t know how to secure their financial future.

The opportunity to build strong financial habits early is invaluable.