Capitec Poll: How our heritage and identity shape and influence our financial choices

A recent survey by a leading South African digital bank shows that heritage plays a significant role in how people manage their finances. Surprisingly, 72% of those surveyed said their mothers greatly influence their savings habits. This influence reflects the importance of family and community in shaping financial behaviors. Moreover, 58% of respondents are involved in group savings methods like stock files, demonstrating the blend of traditional practices with modern financial attitudes. This highlights a rich cultural background where familial roles and community ties help mold financial beliefs and practices across South Africa, showing that even in a fast-changing financial landscape, the lessons learned from family, especially mothers, remain impactful.

In South Africa, mothers significantly shape their children's financial habits due to their influence in managing household spending on necessities like food and medical expenses. This early education at home plays a crucial role in determining future financial behaviors. Additionally, many South Africans feel a responsibility to support extended family members financially. This 'family tax' impacts their financial decisions, often leading them to prioritize helping relatives over personal savings or investments. Understanding these dynamics is vital for fostering positive financial behavior in future generations.

In South Africa, the cultural concept of Ubuntu emphasizes community support and holding responsibilities towards family. This influences financial behavior greatly; young adults with lesser obligations can save more compared to those who contribute financially to relatives' needs. Additionally, Stockfells, as a community saving practice, thrives alongside modern banking. They foster accountability as individuals pool resources together, helping each other achieve financial goals. This tradition reflects an important social fabric where people encourage positive financial habits and support significant communal events. Thus, both the Ubuntu philosophy and the practice of Stockfells play vital roles in shaping the financial landscape, showcasing how community ties contribute to financial planning and stability in South Africa.

In South Africa, many people rely on cash for daily transactions because of the informal cash economy, which complicates their access to formal banking services. A survey indicated that 18% of people hide money at home due to these challenges. Capitek aims to change this by enabling easy and secure digital payments for individuals in emerging markets. They want to break the cash cycle by facilitating digital transactions that can also offer access to credit, supporting business growth. However, this transformation requires a collective effort, including changes in how consumers, retailers, transport, and accommodations operate. Capitek is committed to helping create an ecosystem that shifts people away from cash dependency towards more sustainable financial practices.