A new survey of almost 4,000 South Africans is challenging a long-held belief about money: that financial well-being is primarily determined by income. Instead, the inaugural Frank Wealth Index suggests that everyday financial behaviors – including regular saving, budgeting, debt management and building emergency reserves – play a more decisive role in shaping financial health than age, gender or salary alone.
Speaking in a television interview about the findings, Frank's CEO and founder Thomas Brennan said the central aim of the study was to create a measurable framework for financial well-being. According to Brennan, the index tracks three broad pillars: resilience, growth and mindset. Those categories include how prepared people are for emergencies and retirement, what they're doing with their savings and investments, and how they feel about money, including whether they're confident, stressed or anxious.
The data points to a surprising conclusion: behavior matters more than demographics. Brennan said one of the most unexpected insights from the survey was that what individuals consistently do with their money far outweighs demographic factors like income, age and gender in explaining differences in financial well-being.
The findings are particularly noteworthy in a country where many households face increasing pressures from inflation, stagnant real wage growth and high debt burdens. While South Africans are struggling with a difficult living environment, the study argues that there are still practical steps that many can take to improve their financial situation.
Among respondents earning less than Rs 30,000 per month, the habit most strongly associated with better financial outcomes was regular savings. Brennan said the difference between people who save consistently and those who don't is stark, a difference of about 50 points on the wealth index. The finding reinforces the long-standing principle of “pay yourself first,” but with an important twist: Even very small, automatic savings contributions appear to create momentum.
Once people start saving, secondary benefits begin to accrue, Brennan said. Individuals become more interested in where their money is kept, whether it is generating returns and how they can free up more cash through better budgeting. In that sense, a good financial habit can trigger a chain reaction, leading to improved self-confidence and long-term wealth-building behavior.
The average age of the survey sample was 32 years, and about 55% of respondents earned less than R30,000 per month. Brennan described the group as broadly representative of financially active working South Africans who have meaningful shareholdings such as diplomas or university degrees.
Yet one of the report's most striking findings is the gap between financial awareness and financial action. As discussed, 78% of respondents say they have financial goals, and many consider themselves financially literate or at least moderately knowledgeable. Still, only about 30% had sufficient emergency savings.
For Brennan, that disconnect reflects both structural and behavioral barriers. On the one hand, South Africans face real financial pressures. Many people feel that after paying off the essentials and debts, they have no money left for savings. On the other hand, there is also a degree of complacency or self-sacrifice, where people underestimate the likelihood of financial shocks or postpone long-term planning such as retirement savings.
Debt remains a big part of the problem. Brennan said it is relatively easy to obtain loans in South Africa, which can lead to increased financial stress. But the study also found that respondents who actively worked to overcome their debt — especially when debt management was combined with budgeting — saw meaningful gains in financial well-being.
This finding is important because budgeting is often considered tedious, time-consuming, and emotionally uncomfortable. Still, the data shows that taking the time to understand where the money is going can make a measurable difference. Brennan argued that although most people may not be able to quickly change the income side of the equation, they may have some ability to reshape spending patterns.
He also suggested that consumers use digital tools, including artificial intelligence, to analyze monthly statements and identify opportunities to cut expenses. In his view, the first step toward recovery is to develop a clear picture of cash flow, followed by setting aside some – even if small – for emergency savings.
Studies show that emergency reserves can be game-changing. Once people have a financial buffer, their willingness to invest improves. With basic short-term risks covered, individuals may feel more comfortable considering products such as tax-free savings accounts or other market-linked investments that offer greater long-term growth potential than idle cash.
However, the broader picture remains mixed. The average score across the entire survey was 45 out of 100, which Brennan described as “not terrible, but not great either.” This indicates that the population is under pressure, but there is no scope for improvement.
Importantly, the survey also found that nearly 30% of respondents are just one or two steps away from making significant improvements in their financial lives. This gives a more optimistic edge to the findings. Rather than suggesting that financial progress requires dramatic changes in earnings or circumstances, the index indicates that relatively minor behavioral changes – such as starting to budget, tackling debt more deliberately or saving consistently – can materially improve outcomes.
This message may resonate strongly in a period marked by rising consumer prices, weak real income growth and widespread geopolitical uncertainty. While those macroeconomic factors continue to weigh on families, the Frank Wealth Index shows that personal financial stability may be more within reach than many anticipated.
For Brennan, the hope is that the index will become the starting point for a broader national conversation about financial well-being – not just about where South Africans stand today, but also what concrete steps they can take going forward. If enough people start adopting better financial habits, he said, there is reason to believe the country's score could improve meaningfully in future editions of the survey.
In a challenging economy, this may be the most important measure: South Africans may not be able to control inflation or wage growth, but data shows that many can still improve their financial well-being by making consistent changes with the money they already have.