Inspiration
National Savings Month: How young adults can build a strong financial future─── ZENANDE MPAME 09:52 Fri, 25 Jul 2025
July is National Savings Month in South Africa, and one of the most common money mistakes among people in their 20s is delaying financial planning.
This yearly initiative is aimed at encouraging people, families, and businesses to adopt wise financial practices in order to achieve stability and expansion in the long run.
Financial advisors advise that the best time to start saving is when you start earning your first income, because early financial habits can shape long-term outcomes, and starting young means taking advantage of time and compound interest.
“The biggest mistake that people make is not taking charge of their finances,” said a product manager for FNB Integrated Advice, Lethukuthula Ngcobo. A lot of people look at financial planning as something that they'll look at later when they may be older or when they start earning more.”
“I definitely say that while you’re still in your 20s, as soon as you start earning that first paycheck, that’s the pivotal point for you to actually start managing your finances.”
This is a time when you can determine the course of your future and the course of your life. And you also don’t have many responsibilities, so it’s a time where you can take advantage of your youth, she said.
Ngcobo has steps to correcting one’s financial behaviour:
- Conduct a personal audit, download bank statements, categorise expenses, and identify areas of overspending.
- Start saving with as little as R50 or R100 a month.
- Be consistent and disciplined; this will yield significant results.
- Cut any unnecessary costs, such as takeaways or entertainment.
- Find a savings buddy; having a friend will assist in maintaining accountability
The government encourages people to cultivate a culture of saving. Photo: www.gov.za
People are urged to be intentional when taking out debt, to only borrow when it enhances their life, such as buying a home or car. “Taking out a loan for those things makes sense because at least that’s an asset,” said Ngcobo.
“Avoid taking debt out to fund lifestyle expenses, like paying for holidays, this is definitely not recommended.”
Facing your financial truths can be uncomfortable, but recognising you’re the problem means you can also be the solution. It’s never too late to start saving, whether you are 21 or 41; what matters is that you begin, she said.
