Sanlam 2024 Financial Confidence Index remains stable

The latest report of the Sanlam Financial Confidence Index for 2024 has been released, unveiling some compelling findings. Despite the challenges posed by near-record unemployment and a high cost of living, the overall financial confidence remains stable. However, one in three individuals still experience low financial confidence. The report highlights gradual improvements, such as younger generations displaying a better understanding of their financial goals, pointing towards a shift in mindset. Income disparity continues to play a significant role, with individuals earning lower incomes exhibiting lower financial confidence across key metrics like financial self-determination, resilience, and wellness. Sipho Mncwabe, Regional Executive at Sanlam, emphasized the impact of education on financial confidence, noting that individuals with higher qualifications tend to have higher levels of financial confidence. This finding sheds light on the importance of financial literacy and access to information in fostering a sense of financial well-being among individuals. Mncwabe also discussed the rise in entrepreneurial spirit, particularly among millennials and Gen Z individuals, who are increasingly engaging in side hustles to supplement their income. The generational gap in financial confidence was evident, with millennials and Gen Zs reporting higher levels of self-determination, attributed to their proactive approach in seeking financial knowledge through online platforms and social media. Mncwabe highlighted the positive trend of greater openness in discussing financial matters, emphasizing the value of sharing ideas and experiences to empower individuals. The report also revealed that both genders exhibit equal levels of financial confidence, dispelling notions of gender disparities in this realm. Women, in particular, were noted for their tendency to plan for the future, track goals diligently, and demonstrate higher financial resilience. This trend reflects the unique challenges faced by women in single-parent households, showcasing their proactive approach to managing financial responsibilities. One of the notable outcomes of the report was the increased willingness among individuals to openly discuss their financial circumstances. This cultural shift towards transparent conversations about finances is seen as a step towards greater financial empowerment and collective problem-solving. In a conversation with CNBC Africa, Mncwabe remarked on the resilience of South Africans in navigating economic challenges, attributing the stability of the index to a growing entrepreneurial spirit and the proactive nature of individuals in managing their financial well-being. Despite external economic pressures, the report indicates a positive trajectory towards financial empowerment and open dialogue around financial matters, signaling a promising shift in attitudes and behaviors related to financial confidence.