Understanding South African financial habits through cultural lenses

In South Africa, money is never just money. It’s a symbol, a story, a social contract. It’s how we honour our ancestors, support our families, and prepare for tomorrow. And as Heritage Day approaches this September, it’s time to ask: What does our heritage teach us about money? South Africa’s cultural richness is reflected in the way we save, spend, and share.

From traditions of ubuntu and collective support, to values of thrift and legacy-building, to customs of gifting and generational wealth. Each community brings its own financial flair to the table.

A 2023 study by DC Experts, Understanding how cultural influences shape financial habits, reveals that South Africans’ financial decisions are deeply influenced by cultural values and traditions. The findings show that effective financial advice must take these cultural dynamics into account:·

Spending patterns: In many communities, weddings, funerals, and religious festivals carry deep social meaning. Generosity is expected, even when it stretches personal budgets.

· Saving behaviours: Some cultures prioritise saving for future security, while others focus on immediate communal needs.

· Financial planning: Tailored strategies that reflect cultural values, like budgeting for traditional obligations, are more effective in some cultures than generic financial advice. The research underlines the importance of recognising cultural context in financial planning, making advice more relevant and sustainable for South African households.

This isn’t just theory. It’s a lived reality. This is why Heritage Day isn’t just about braais or beadwork. It’s about remembering who we are. In the case of money, it’s about how we’ve come to where we are. Think of the stokvels that have quietly sustained families for generations. Or the informal traders whose resilience is woven into every transaction.

The dedication of mothers and fathers who do two jobs. The student who has four part-time jobs to afford that degree to get ahead in life. Or the elders who pass down wisdom through examples of thriftiness and hustling, stories, and proverbs.

In the informal economy, money is deeply embedded in social relationships. It’s about dignity, survival, and social cohesion, not just profit. As our financial systems modernise, we must carry these cultural truths with us.

Plus, be aware of the challenges of the promises of easy money, looking at the spiking numbers of gambling and the Lotto. There are still people who don’t realise that a foundation of false hope can never be sustainable. Even for the winners, as many sad stories relay.

We need to grow our knowledge of money to make better financial decisions, and sometimes that starts with listening to the wisdom of elders who are trying to guide us and show us that money is a friend if you treat it with respect, especially when you allow it the time and space to work on your behalf.

Everyone who earns an income should think about financial advice, and about finding an adviser who truly listens to their stories and understands their needs. A good adviser can help you budget for cultural obligations, build intergenerational wealth plans, and open up honest conversations about money, especially in communities where it is traditionally taboo to talk about money.

In a country like South Africa, where the Gini coefficient makes us very aware that, however culturally rich we are, the divide between haves and have-nots is still huge, every rand carries a story. Let’s share our stories and empower each other. Everyone deserves to be heard, our South African flag after all symbolises the convergence of our diverse elements, tackling the future in unity.

* Havenga is the head of business transformation at Momentum Savings.

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