Education level equates to financial literacy

It is important to teach your teenagers how to manage their money.

Results from the South African Social Attitudes Survey (Sasas) indicated a positive relationship between education and budget keeping, as 79% of adult South Africans with a tertiary education reported having a household budget.

Considering only two out of 10 matriculants could expect to be accepted into universities in 2017, the majority will have to make alternative plans when it comes to their education.

There is also the alarming issue of between 50 and 60% of students dropping out in the first year, with little chance of them re-entering the tertiary education system.

“For this reason, there remains a lack of financial literacy.

“This is especially true among those who do not obtain tertiary qualifications but still have to start managing their own finances once they get a job and start earning a salary,” says Derek Wilson, head of online insurance and financial comparison website, Hippo.co.za.

“There is, however, still an opportunity for parents or guardians to educate the youth on how to manage their finances from an early age”.

Once teenagers start to move towards becoming more independent, there are various financial decisions they seriously need to consider.

These include learning to keep a budget, opening their first bank account, applying for finance for their first vehicle and what to insure when.

Hippo.co.za provides tips on how adults can help the youth to be more financially savvy from an early age.

Visit their website to get tips that will make it easier for teenagers to cope with everyday responsibilities that so many of us take for granted.