The Missing Subject: Why Financial Education Should Be Mandatory in South African Schools
“As a now 21-year-old, there are a few life skills that I wish were included in our national curriculum. One of them was financial literacy.”
This candid admission from Tshegofatso, a recent university graduate now struggling with debt, reflects a sentiment shared by millions of young South Africans. They’ve mastered algebra, memorized historical dates, and analyzed literature—yet many enter adulthood without understanding how to budget, save, or avoid predatory lending.
The consequences of this educational gap aren’t merely personal inconveniences. They represent a systematic failure with profound implications for South Africa’s economic future.
The Financial Knowledge Crisis
The statistics paint a concerning picture. According to the Human Sciences Research Council, just 51% of South African adults are considered financially literate. Even more alarming, research published by CNBC Africa indicates that approximately only 5% of South Africans will be able to retire comfortably.
This isn’t merely about inadequate savings habits. It reflects a fundamental gap in knowledge that begins in childhood and persists throughout adulthood, creating generational cycles of financial vulnerability.
“Financial planning is one of the most important skills that we can teach our youth,” explains education specialist Dr. Nomsa Dlamini from the University of Pretoria. “Many teenagers leave their hometowns without any financial planning skills, which can lead to poor spending habits and financial instability.”
Yet despite this recognized importance, financial education remains conspicuously absent from South Africa’s core curriculum, relegated at best to brief, superficial coverage within Life Orientation.
Beyond Budgeting Worksheets
The case for financial education goes beyond teaching students how to balance a checkbook. Research from the Financial Services Board demonstrates that comprehensive financial education programs deliver multiple benefits:
- Reduced vulnerability to financial scams and predatory lending
- Improved saving rates and long-term financial planning
- Greater entrepreneurial confidence and small business formation
- Lower levels of financial stress and anxiety
- Increased economic participation across income levels
“When we look at countries that have successfully implemented financial education in schools, we see measurable differences in economic behaviors even 5-10 years after graduation,” notes economist Thabo Molefe. “Students make more informed decisions about education financing, avoid high-interest debt, and begin saving earlier.”
The ripple effects extend beyond individual finances to impact broader economic participation. Young people with financial confidence are more likely to engage with formal banking systems rather than remaining in cash economies or falling prey to loan sharks.
Pioneering Schools Leading the Way
While national curriculum integration remains elusive, several South African schools have developed innovative approaches to financial education that could serve as models for broader implementation.
At Masibambane College in Orange Farm, principal Sarah Mothupi partnered with local banks to develop a practical financial literacy program integrated across multiple subjects.
“We don’t teach financial literacy in isolation,” Mothupi explains. “Our mathematics teachers use real-world financial problems. History classes explore economic systems. Technology classes create budgeting apps. This cross-curricular approach helps students see finance as part of everyday life, not a separate subject.”
The results have been remarkable. Over five years, Masibambane graduates have shown a 37% higher rate of post-secondary enrollment, with fewer students citing financial barriers as an obstacle to further education.
Student Voices: The Education They Wish They Had
Perhaps the most powerful advocates for financial education are students themselves. When asked what financial knowledge they most wish they’d learned in school, recent graduates highlight practical applications over theory:
“I wish someone had explained how credit actually works,” says Thabo, 23, now struggling with credit card debt. “We learned about interest rates in maths, but nobody explained how missing payments affects your future.”
“I learned about apartheid history every year, but nobody taught me how to file taxes or apply for financial aid,” adds Lerato, 19. “I spent my first year of university figuring out things that could have been taught in a single high school class.”
Annual Research conducted by the online loan provider Wonga South Africa on youth ‘financial attitudes’ found that 82% of students want more financial education in schools, with practical topics like debt management, saving strategies, and consumer protection ranking highest on their wish lists.
International Success Stories
South Africa wouldn’t be pioneering uncharted territory by incorporating financial education into its curriculum. Several nations have already demonstrated the effectiveness of this approach:
Estonia integrated financial literacy across its national curriculum in 2010, resulting in Estonian students achieving the highest financial literacy scores in Europe according to the OECD’s PISA financial literacy assessment.
Singapore incorporated financial education from primary level, contributing to the country having one of the world’s highest household saving rates and lowest levels of problematic debt.
New Zealand made financial capability a core component of its curriculum in 2009, leading to measurable improvements in young adult financial behaviors within a decade.
“The evidence from international examples is clear,” says Dr. Michael Peterson of the South African Institute of Financial Markets. “When financial education is introduced early and reinforced consistently, it creates significant positive outcomes at both individual and societal levels.”
Implementation Challenges and Solutions
Critics argue that South Africa’s educational system already faces numerous challenges, from infrastructure deficits to teacher shortages, making new curriculum additions difficult. However, advocates point to several implementation approaches that could overcome these challenges:
Public-Private Partnerships: Financial institutions can provide both expertise and resources to develop and deliver content, as demonstrated by successful programs in Brazil and Ghana.
Digital Delivery: Mobile-first educational content can reach students even in schools with limited resources, leveraging South Africa’s high smartphone penetration among youth.
Teacher Development Programs: Weekend and school holiday workshops can equip existing teachers with financial education skills without disrupting current teaching schedules.
Phased Implementation: Beginning with pilot programs in select districts allows for refinement before national rollout, as successfully demonstrated in Mexico’s financial education program.
From Aspiration to Action
Moving from acknowledging the importance of financial education to actual implementation requires several concrete steps:
- Curriculum Development: Creating age-appropriate financial content aligned with existing educational frameworks
- Teacher Training: Equipping educators with both subject knowledge and effective teaching methodologies
- Resource Development: Producing accessible, engaging learning materials for diverse classroom contexts
- Measurement Frameworks: Establishing clear metrics to evaluate program effectiveness
- Community Engagement: Involving parents and community members to reinforce classroom learning
Organizations like the Banking Association South Africa have already developed curriculum frameworks that could be adapted for national implementation, significantly reducing development time and costs.
The Ripple Effect: Beyond Individual Benefits
Perhaps the most compelling case for mandatory financial education lies in its potential to address broader societal challenges facing South Africa:
Economic Inequality: Financial knowledge creates pathways to economic mobility across socioeconomic backgrounds.
Gender Empowerment: Research shows that financial education particularly benefits girls, who often receive less informal financial guidance at home.
Entrepreneurship: Financially confident youth are more likely to consider entrepreneurship, crucial in a country with high unemployment.
Reduced Predatory Lending: Educated consumers are less vulnerable to mashonisas and other exploitative financial services.
As 17-year-old Dikeledi from Soweto powerfully states: “Teaching us about money isn’t just about banks and budgets. It’s about giving us power to make our own choices. Without this knowledge, we’re forced to repeat our parents’ financial struggles, even when we work harder and earn more than they did.”
The Time for Action is Now
South Africa stands at a critical juncture. With youth unemployment exceeding 60% and household debt at record levels, the country cannot afford another generation unprepared for financial realities.
Financial education isn’t merely another subject to squeeze into an already packed curriculum. It represents a fundamental investment in South Africa’s economic future—one that pays dividends not just in individual lives but in national economic resilience.
As David Bach, a financial education advocate, concludes: “Financial education needs to become a part of our national curriculum and scoring systems so that it’s not just the rich kids that learn about money—it’s all of us.”
The question is no longer whether South Africa should make financial education mandatory in schools, but how quickly it can be implemented to equip the next generation with this essential life skill.
