Advertorial – NMG Benefits: Here’s how to increase your financial literacy

Here’s how to increase

your financial literacy

Do you know how to get the most value out of your banking? Are you savvy in the way that you save? Do you know how to reduce debt and increase your credit score? Do you understand basic investment principles? Do you know how to use your money to get the greatest tax benefits possible?

If your answer to any of the above is ‘no’, you could be among the numerous South Africans in need of financial literacy education. The effects Craigh Chidrawi – Executive Head: of poor financial literacy can be Retirement devastating on your financial future, right through to retirement, where it is estimated that only 6 out of every 100 individuals will be able to retire comfortably. According to Kantar research, most South Africans want to save, but they simply don’t understand the various options available to them, from traditional bank savings accounts to new platforms like cryptocurrency. As a result, the average consumer now spends more than 75% of their take-home pay on debt; and eight out of every 10 of us can’t make ends meet every month. “Financial literacy affects every aspect of our lives, from education to where we live and how we access medical care. The less debt we have, the less stressed and heathier we are. Even just taking a few minutes every day to educate ourselves better about financial matters is an investment in our futures,” said says Craigh Chidrawi, Head of Retirement at employee benefits advisory firm NMG Benefits. A survey by DebtSafe in June saw 80% of respondents saying they struggle to save, because they don’t have enough money to cover their living expenses, and many are mired in debt. A third of respondents said a lack of finance knowledge is the main reason they struggle to budget. Around 80% of people run out of money within five days of being paid – and because they don’t know any better, they turn to payday lenders, personal loans and unscrupulous lenders to get them through the month.

App-based financial learning experiences

One solution to the problem of low financial literacy lies in app-based financial learning experiences, says Chidrawi. These apps provide users the knowledge to understand financial matters through easy to grasp, story-driven educational content that is delivered to their mobile phones.

NMG’s own offering to employers is SmartAlec – powered by global financial education fintech FinEazy – teaches users a range of financial principles, such as banking, types of bank accounts, payments and savings through to sophisticated investment portfolios. It also provides guidance on short and long term insurance.

“If you don’t have access to an app through your employer, there are numerous free online resources to help you start making better financial decisions. Good financial literacy is the foundation for a better life for you and your family,” says Chidrawi.

www.nmg.co.za