Capitec poll reveals how heritage shapes Mzansi’s money habits

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A survey conducted by the leading digital bank reveals that 72% of respondents say their mothers have the most significant influence over their current financial beliefs and behaviours.

Asha Patel, head of brand and communications at Capitec, says the leading digital bank’s poll clearly reflects how South Africans’ heritage shapes who they are, including how they manage their finances.

“As a bank serving over 22 million clients, equivalent to a third of South Africa's population, Capitec is in an ideal position to understand what’s shaped South Africans' money habits.

"For example, our poll revealed that 16% of respondents still support their extended family financially. This finding points to the reality of the informal social contract of 'family tax' in our society.

"Here, individuals often support extended family beyond immediate family members, influencing financial responsibilities and priorities. These are the local insights that help us create modern solutions that resonate with South Africans' cultural values."

Traditional savings methods remain prevalent

Capitec’s poll sheds light on the lasting impact of traditional savings methods. When asked which traditional savings methods their family used while growing up, 58% said they participated in stokvels, highlighting how these savings clubs are deeply rooted in South African culture.

Interestingly, 18% of respondents reported that their families hid money at home, a method that speaks to limited access to financial services in some communities. In contrast, 23% of respondents grew up with families that used bank accounts for savings, indicating a gradual shift towards formal financial systems.

The generational transfer of financial habits

When asked how much their family's approach to saving has influenced their current financial habits, half of the respondents said "very much”, only 12% said "somewhat”, and 9% said “not at all”. Patel says this finding points to the powerful generational transfer of financial practices and beliefs within South African families, and how financial behaviours are inherited and passed down through generations.

Further illustrating this point, when asked about the strongest influence on their current financial beliefs, a striking 72% credited their mothers. Capitec says this highlights women’s pivotal financial education role within families, acting as primary influencers in shaping saving and spending behaviours.

Additionally, 66% cited personal experiences, while 11% pointed to family traditions. This suggests that while personal experiences play a crucial role, the foundation of these experiences is often rooted in family-based financial education.

Blending traditional practices with modern solutions

When asked which cultural or family financial practices respondents still follow today, 52% said they still participate in stokvels much like their families did when they were growing up, and 23% still save cash at home – indicating that traditional practices still exist alongside modern banking methods.

Interestingly, 49% of participants use traditional and modern approaches in their financial decision-making. Only 25% have adopted mostly modern financial strategies, and 17% rely primarily on practices they’ve learnt from their family or culture.

“These insights suggest a trend towards integrating time-honoured saving methods with current financial solutions. Our findings tell us that South Africans are not entirely abandoning traditional practices. Instead, they are adapting and combining them with new technologies and banking services to meet their financial goals."

Enhancing traditional practices with modern money tools

Capitec says it's inspiring to see how deeply ingrained saving habits are within South African culture.

“As we celebrate our diverse heritage, it's clear that traditional financial practices continue to play a significant role in shaping modern money management strategies. However, the financial landscape is evolving, and there's a growing need to blend South Africa’s deeply rooted practices with modern financial tools,” says Patel.

Patel offers these tips to help South Africans embrace traditional savings practices with modern solutions.

Leverage the power of compound interest: While saving cash at home is common among respondents, consider putting some savings into an interest-earning savings account. Compound interest means you earn interest not just on your initial savings but also on the interest you've already earned, allowing your money to grow exponentially over time.

Blend community support with formal banking: While supporting extended family is a cultural norm for many, consider setting up dedicated savings plans to manage these commitments.

Educate the next generation: Given the strong influence of family on financial habits, take an active role in teaching children about traditional and modern practices.

Remember, to effectively educate the next generation, it's crucial to educate yourself. Capitec's free MoneyUp Academy offers online learning experiences to help you build your financial knowledge and skills, covering topics like budgeting, saving, investing, and making smart credit decisions.

Patel says Heritage Month is a time to reflect on the customs that shape our identities. She adds that the poll results highlight that while South Africans hold traditional financial practices in high regard, they are open to embracing modern strategies that enhance these traditions.

“By offering tools that align with South Africans' traditional and contemporary saving methods, Capitec can support people as they make the most of their financial journeys. Our approach ensures that clients don't have to choose between heritage and innovation – they can have the best of both worlds,” concludes Patel.