Does financial education work? Yes… but maybe not in the way we think

Yet, if one looks at concrete figures, it is difficult to see the true return on this investment. Which raises an important question: What impact are we measuring?

Despite this influx of interventions in education, outcomes are not improving where it matters most. In 2025:

• Negative Savings: The South African household savings rate reached -1.2%. This means South Africans are spending more than they earn, while the global average sits around 10%.
• Gambling trend: More than R1tn was spent on online gambling in one year.
• Retirement interval: Retirement outcomes remained stagnant, and even entrepreneurial activity declined.

While high inflation and low growth are structural constraints, we have to ask ourselves: Why is the current approach to financial education not translating into better behavior?

At Prescient Foundation, we realized that teaching “investment products” to people who are still struggling with the basics is like teaching calculus to someone who hasn’t mastered addition. Instead, our approach starts with empowering people to make better everyday spending decisions before focusing on savings.

change focus

In partnership with School of Savings South Africa, we have launched a different kind of initiative in six secondary schools in KwaZulu-Natal.

These schools are a combination of fee-paying and non-fee-paying schools, but all are broadly defined as operating in needy communities.

Rather than starting with complex asset classes, this initiative focuses on the psychology of the “three D’s”: Decision, Direction, and Discipline. The 2025 group of 724 students revealed a shocking reality:

• 82% get pocket money, yet 77% do not have a bank account.
• Only half of people keep track of their monthly expenses.
• 74% said they learn about saving in school, yet don't understand “how to do it.” In many South African households, open discussions about money management are rare.

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We also cannot ignore the reality of child-headed households, where traditional “financial role models” simply do not exist.

Our differentiator focuses on wise spending rather than just “investing.” Each learner receives a workbook and a money box to save just R1 per day. It's one small, consistent step that proves financial freedom isn't about how much you start with; It's about the habit of delayed gratification.

ripple effect

The results of this 18-month program are proving that financial literacy is about more than just money. It's about confidence, mindset and choices for students – especially young women – in schools.

We are seeing an incredible real change: students engaged in these initiatives are gaining confidence in tackling difficult academic subjects.

These students aren't just learning how to save; They are becoming role models for their peers and especially their parents. They're proving that your financial circumstances don't determine your financial destiny.

If we want to fix South Africa's relationship with money, we need to stop treating financial literacy as a “crash course” for adults and start treating it as a foundational language for our youth.

Explaining the intricacies of the stock market to someone in debt will not bring about true change; This comes from teaching a tenth grader the power of money. When students reach 12th class, the habit of discipline should already be a part of their DNA.

We believe that by focusing on the basics – decision, direction and discipline – we are not just teaching young people how to save; We are empowering them to rewrite their future.

This is an opportunity to rethink financial literacy – not as a stand-alone obligation, but as a foundational subject with a meaningful place in the South African curriculum.