How open discussions about money can save South African families from financial crises

Many South African families are only one emergency away from financial trouble. With the rising cost of food, fuel, and electricity, even a small, unexpected expense like a burst geyser or medical bill can push a household into debt, according to Yashika Rambujan, FNB Private Banking regional head KZN.

Rambujan says despite this, most people still don’t have money saved for a rainy day, and without a savings buffer, families often turn to credit cards, personal loans, or store accounts to get by, and end up paying high interest that eats into future income.

“Many families could avoid this situation by talking about money more openly. It’s not just about budgeting; it’s about creating a shared understanding and plan for your household’s finances. That starts with honest conversations about what each person earns, what debts they have, what worries them, and what they are working towards," Rambujan says.

But these conversations don’t always come easily. Many people grow up in households where money wasn’t discussed, or they carry shame or fear around debt, she says.

“It’s very common for one partner to carry the mental load while the other avoids the topic entirely. That silence often leads to confusion or mistrust, especially when a crisis hits and there is no mutually agreed plan in place,” says Rambujan.

She recommends setting aside regular time – even if it’s just once a month- for a money check-in to agree on a household budget, and decide together how you will save, spend, and handle emergencies.

Ilse Smuts, business development head at FNB Retail Cash Investments, says: “Those emergencies are where many families tend to come unstuck. In the 2025 FNB Retirement Insights Survey, over 75% of respondents reported having less than 6 months’ worth of emergency savings, and 15% said they have absolutely nothing saved for an emergency. This leaves them extremely vulnerable when faced with a sudden bill, and without savings, debt is often the only thing people can fall back on.”

Smuts says an emergency fund is the most important first step in building financial resilience. Even R200 or R500 a month saved consistently can make a big positive difference. Over time, aim to build up to one month of essential expenses and build from there.

She also recommends keeping emergency savings in a separate account that’s easy to access but not linked to everyday spending.

Smuts says once the emergency fund is in place, couples can then start to look more seriously at other goals, like saving for school fees, a deposit on a car, or retirement. This is where it helps to understand different time horizons.

The trick is to match the product to the goal. “A family saving for December holidays should not be locking that money into a five-year investment. But if they’re thinking long-term, then they can take on a bit more risk over a longer term to achieve better growth. Many people mix these up and end up either under-saving or accessing their long-term investments too early,” says Smuts.

Rambujan emphasises that the best financial plans are built together. Couples who talk about money and plan jointly tend to be more successful at managing debt, building savings, and staying on track. The key is consistency, both in the conversation and in the saving.

“This isn’t just about protecting your money; it’s about removing one of the major sources of stress from your relationship. Emergencies are stressful enough without having to worry about how you are going to pay for them, so a little planning and a strong money partnership can go a long way,” says Rambujan.

PERSONAL FINANCE