I am joined by Lee Hancox, Head of Channel and Segment Marketing at SanlamConnect, and behavioural scientist Kele Boakgomo, CEO of Yugrow, to chat about the rather interesting findings of the 2025 Sanlam Financial Confidence Index.

According to the survey, South Africans are currently feeling more confident about their finances than they have in the last three years. This confidence is driven in part by lower interest rates, the end of loadshedding, and real salary increases.

Yet, despite feeling more confident, this is not translating into an improved sense of financial well-being and 74% of South Africans remain stressed about their daily finances.

As Lee Hancox notes, “real salaries are rising for the first time in seven years, and inflation is stabilising, giving households a renewed sense of control. However, gaps remain, and we’re still seeing a worrying lag in financial wellness.”

As we know from experience, we usually need confidence to inspire action. So, how can we utilise this confidence and improved macroeconomic conditions to enhance our personal financial well-being?

The good news is that, after years of economic instability, South Africans are beginning to improve their relationship with money and their resilience. According to the Sanlam Financial Confidence Index, half of the respondents report that they could recover from a financial setback, representing an 11% increase from last year.

Kele Boakgomo explains that this is the start of a recovery.

“We’re seeing a collective shift from survival mode to control. Financial stress has forced new habits – people are protecting what they have, prioritising stability and learning to manage uncertainty. The next step is helping them turn control into long-term capability.”

Boakgomo notes that people increasingly believe in their financial potential, but still struggle to build habits and systems that turn their optimism into tangible outcomes.

“The next evolution will come from tools that make progress visible and habits automatic. When saving, tracking and paying down debt become part of daily life, confidence turns into capability.”

Changing our money habits

Much of this is about changing our habits around money – and it’s easier to change our habits when we’re feeling more confident about the future.

Good money habits can include:

• Writing down what you spend so you know where your money is going. Have you ever wondered why, when you pop into the shops for bread and milk, you end up spending R300? By writing down what you spend and identifying behaviours, you become more mindful rather than falling into an “unconscious” spending habit.
• Committing a portion of a bonus or tax rebate to build an emergency fund to help you feel less vulnerable. I always recommend that people start with at least R15 000 with the aim of building it up to three months of living expenses over time. You will find that the more frequent unexpected expenses can mostly be covered by R15 000, and having these funds available stops you from accessing credit.
• Starting a monthly investment in a tax-free savings account to grow your wealth. Although you can invest up to R36 000 a year, you can start with whatever you can afford. Platforms like Satrix have no minimum, so even if you can put away only R200 each month, you are moving towards wealth creation.
• Another great strategy is the “pay more tomorrow” principle, where you commit a percentage of your salary increase towards your retirement contribution. For example, if you currently contribute 10% of your salary to your company retirement fund, instruct your HR department to increase that by 2% next year, and the year after. Within a few years, you will be contributing up to 20% towards your retirement without feeling the budget squeeze today.

Start having money conversations

We also need to start talking about our money. You will be surprised when you do, how many other people are feeling the same way about their finances – after all, 7 out of 10 people are feeling stressed. Yet, two-thirds feel uncomfortable discussing money.

Hancox says these feelings often stem from inherited money narratives.

“Our family circumstances shape deep-seated beliefs about money – beliefs that linger long after our situations change. Many people still carry the fear or shame they experienced growing up. We must start having real, open conversations and normalise money talk as an act of empowerment. Awareness is the first step; advice is the next.”

In my experience, when people discuss money in a group setting, they often feel a profound sense of relief that they are not alone. They are also able to share experiences and financial tips, as well as motivate each other. Money conversations should be empowering, not embarrassing.

Generational turning point

Gen Z – those between 15 and 28 years old – have the highest levels of financial confidence, and have the greatest opportunity to turn that confidence into financial well-being.

Hancox sees this as a generational turning point: “Gen Z’s optimism is an incredible opportunity. They’re open to learning, curious, and digitally empowered”.

They are also the generation of hustlers, and their side hustles and multiple income streams may be making them feel more secure about their futures.

Older generations could learn from them; however, this younger generation needs to be careful about overconfidence, which can lead to overspending.

They need to make the most of the power of compounding by investing their money and focusing on growing their wealth.

A confident nation – on paper

• Two in five people (40%) now have a high or very high Financial Confidence Index (FCI) score, compared to just 27% in 2024.
• Encouragingly, 68% say they have the courage to live within their means (10% increase year-on-year);
• 63% feel on track to pay off debt (+21%);
• And 58% believe they have the financial freedom to make life choices they enjoy (+38%).

But while optimism is growing, behaviour hasn’t yet caught up.

• Less than half of South Africans have written down their long-term goals or track them.
• Only 42% trust their own financial abilities.
• Financial Wellbeing (32) still lags well behind Financial Self-Determination (61) and Resilience (58).

Some useful definitions

• Financial self-determination: Commitment to financial goals
• Financial resilience: Capacity to come back from curveballs
• Financial wellbeing: Ability to meet current and future needs
• Gen Z: Born between 1997 and 2010, aged 15 to 28
• Millennials: Born between 1981 and 1996, aged 29 to 44
• Gen X: Born between 1965 and 1980, aged 45 to 60
• Baby boomers: Born between 1946 and 1964, aged 61 to 79

This episode was made in partnership with Sanlam.