Buy online
By Andiswa Nyembe, Communications Manager: Financial Services at 1Life Insurance
On World Youth Skills Day, it's essential to focus on equipping young people with the financial skills they need for independence. The 1Life Insurance Generational Wealth Youth survey reveals that over 50% of South African youth lack the knowledge to secure a financially stable future, highlighting a critical need for financial literacy.
While the ambition for financial freedom is commendable, it's the right skills that unlock and sustain it. For example, you might clear your debt but struggle to stay debt-free without proper financial management skills.
The economic landscape presents significant challenges for the youth. With a youth unemployment rate of 45.5% and a high cost of living, achieving financial freedom can seem daunting. Additionally, the burdens of black tax, student loans, and generational debt further complicate this journey.
However, there are practical steps and resources available to help young people develop essential financial management skills:
1. Secure Insurance Early
From the age of 18, securing insurance cover is beneficial. Younger policyholders often enjoy lower premiums due to factors like age and health. Investing in life insurance or a retirement annuity early allows your money more time to grow, helping to break the cycle of generational debt and build wealth for the future.
2. Consult a Financial Expert
Partnering with a financial advisor can be a game-changer. The thrill of receiving your first paycheck can lead to impulsive spending. A financial advisor helps you balance saving, investing, and spending, ensuring you live within your means and stay on track with your financial goals. At 1Life Insurance, our advisors provide personalised advice tailored to your unique financial situation.
3. Utilise Free Online Financial Literacy Resources
Continuous learning is crucial for acquiring new skills. Numerous resources are available, including books, podcasts, and free online financial literacy courses like the 1Life Truth About Money financial literacy courses. These courses cover vital topics such as Basic Principles of Successful Money Management, Managing Debt, Making Money Last, and Building Generational Wealth.
Taking charge of your financial education is your responsibility. By leveraging available tools and resources, you can achieve financial independence sooner and provide yourself and future generations with the ultimate gift – financial stability.