Nick Wolmarans, Franchise Principal at Consult by Momentum

When it comes to how people manage their finances, every nation has its quirks.

Americans are known for their over-reliance on credit cards, while the Japanese – despite their high savings rates – are sometimes criticised for hoarding cash rather than putting it to work. Germans are famously debt-averse, and in the United Kingdom, while households may be financially sophisticated, many remain underinsured against income loss or critical illness.

These may be financial stereotypes, but stereotypes usually exist for a reason.

And here in South Africa?

With September being Heritage Month, Nick Wolmarans, Franchise Principal at Consult by Momentum, says it’s time to take a hard look at the “legacy” financial habits we’ve inherited as a nation – and what we need to do to shake them off if we want to create a healthier financial future.

South Africans need to get real about saving – especially for retirement

South Africans are notoriously poor savers, with only about 6% of us on track to retire comfortably. Many employees cash out retirement funds when changing jobs, leaving their golden years underfunded. The new two-pot system has allowed withdrawals from the Savings Pot, but while this may provide short-term relief, it comes at a steep cost later on, as it erodes the potential of compound interest.

The fix? “Start small, but start now. Increase your retirement contributions when you get a bonus or salary increase, channel tax refunds into your Savings Pot, and take advantage of lump sum allowances. Small adjustments compound into big results over time,” says Wolmarans.

We’re a little too partial to conspicuous consumption - From flashy cars to designer brands, South Africans are no strangers to showing off wealth – especially in the era of social media. For many, displaying material success signals that they’ve “made it.”

But wealth isn’t about what you wear or drive, says Wolmarans. “It’s about building assets, gaining financial security, and ultimately buying freedom. Shifting our mindset to value long-term financial health over short-term appearances is one of the most powerful behavioural changes we can make.”

We need to stop living beyond our means - Debt is strangling many households across the country. According to the National Credit Regulator (NCR), nearly 10 million South Africans are over-indebted, with unsecured credit – personal loans, credit cards, and retail accounts – funding everyday expenses. Rising interest rates mean this debt is more expensive than ever.

“Living on credit creates a cycle that’s incredibly hard to escape. Breaking it starts with budgeting honestly, cutting back on lifestyle inflation, and avoiding the trap of using debt as a crutch. Also, prioritise paying down high-interest debt to avoid steep interest rates and debt servicing costs eating away at your income,” says Wolmarans.

We need to stop underinsuring - South Africans love funeral cover, but when it comes to broader protection, like life, disability, or short-term insurance, cover often falls short. The Association for Savings and Investment South Africa (ASISA) estimates that households face a combined insurance shortfall of more than R34 trillion in life and disability cover.

Warns Wolmarans: “This leaves families financially exposed if a breadwinner falls ill, becomes disabled, or passes away unexpectedly. Comprehensive insurance is a safety net that protects your wealth and loved ones when you can’t.”

We need to start getting professional financial advice - The latest Momentum | BMR Household Financial Survey shows that only 9% of households work with a financial adviser. This means 91% of South Africans are navigating one of life’s most critical areas – money – without professional guidance. But just as you wouldn’t attempt your own medical surgery, says Wolmarans, “managing your wealth without expert advice is risky. A qualified adviser can help you plan for retirement, protect your family, and grow your wealth strategically.”

…But we hustle, really well.‍

For all our bad habits, South Africans are nothing if not resourceful. “We’re resilient, adaptable, and entrepreneurial. The challenge  –  and the opportunity  –  lies in channelling that same energy into building and protecting our financial dreams, says Wolmarans.

“With the right shifts in behaviour, we can ensure that future generations inherit not just our resilience but our prosperity too.”