logo
#

Latest news with #JohnManyike

Time for students to manage their money better
Time for students to manage their money better

The Citizen

time4 days ago

  • Business
  • The Citizen

Time for students to manage their money better

Many students are battling to repay their debt according to a survey, showing that they need to learn how to manage their money better. In a time when the whole world is battling to make ends meet, it is more important than ever for students to manage their money to ensure that they reach financial success instead of financial distress. As Youth Month comes to an end in South Africa, many students may feel they deserve to celebrate but according to a survey done by Old Mutual in partnership with South Africa's TVET colleges, many students are battling to repay their debt, with 14% skipping classes due to financial difficulty. This highlights the dire need for intervention, says John Manyike, head of financial education at Old Mutual. Although most students (72%) are confident in their ability to manage their finances, the overwhelming majority (78%) do not know how to budget properly. Manyike says this is one of the core findings of a survey Old Mutual conducted among 727 students between the ages of 18 and 25 at Technical and Vocational Education and Training (TVET) colleges across the country. ALSO READ: More than 560k students in South Africa in debt, many unable to graduate Students have a budget, but do not stick to it The survey found that 52% of the participating students confirmed that they have a budget, but do not always stick to it, while another 25.7% admitted that they do not have time to budget. Only 22% of the respondents managed to have a budget and stick to it. 'The survey findings show that there is a marked discrepancy between students' perception and reality. While most students feel they are in control of their money, the fact that the majority of them do not budget properly would indicate otherwise.' Another key standout from the survey is that 11% of a smaller sample group of 249 students have some kind of debt, with 20% of these students indicating that they are not coping with their debt. Over 14% of those surveyed said they sometimes or often miss classes due to financial difficulty, Manyike points out. 'This is one of the crucial messages that we emphasise in our training, the importance of driving down bad debt and using good debt wisely. Unfortunately, many young people feel that they do not have a good handle on their debt and need help understanding how to gain control of it.' ALSO READ: Will South African youth achieve financial freedom? — Tomorrow's leaders drowning in debt today Only 28% of students save regularly A further insight from the survey is that only 28% of respondents save regularly. 'Protecting and investing your wealth is another lifelong habit that we highlight in our training. Again, students need help in this area. Many feel they do not have enough money to save or invest, but the truth is that the earlier you start on your investment journey, the better – and every little bit counts.' While the baseline data show concerning trends in terms of budgeting, saving and debt management, the research nevertheless proves that even short interventions can build real financial capability among the youth, Manyike says. In the pre-assessment survey, students reported being only 41% financially confident, but after the training, this figure improved to 57%. Similarly, only 28% of respondents said they were financially informed before the training, but afterwards 48% said they believed the training improved their financial knowledge. 'This makes a strong case for the value of financial education in helping young people make informed decisions and build financial resilience,' he says.

Youth and money — how to save smart, spend smarter and dodge debt
Youth and money — how to save smart, spend smarter and dodge debt

Daily Maverick

time24-06-2025

  • Business
  • Daily Maverick

Youth and money — how to save smart, spend smarter and dodge debt

Youth Month is a great time to be thinking about how to encourage your children to approach their finances at an early age, to instil good financial habits and reap the rewards of compound interest. I was taken aback earlier this year when my almost-not-quite-18-year-old called me in a panic to ask me how to use an ATM to draw cash. 'I always just get cash from you, or swipe my card,' he pointed out. Oops. Sometimes it's easy to miss the small things when you're focused on stressing the bigger things (like saving). Once that little hurdle had been addressed and he got the hang of budgeting each week, he came to me with a request to set up a savings system using his own money. He had a lump sum of R5,000 to start off with – money he earned working a holiday job. Some of you may think it's overkill, but I kicked him off with a retirement fund annuity, in an aggressively positioned unit trust fund. The amount is R500 a month and he started a few months shy of 18. 'Keep putting in R500 a month for the rest of your life, forget about it and only look at it again when you are 10 years away from retirement (or 55),' I told him. I'm sure when he starts earning one day, he will contribute more (I hope) to his retirement savings, but if I kick the bucket tomorrow, at least he has started his financial journey on the right foot. Students battle debt Sadly, a survey by Old Mutual in partnership with South Africa's TVET colleges shows that many students are battling to repay their debt, with 14% skipping classes due to financial difficulty. This highlights the dire need for intervention, says Old Mutual's head of financial education, John Manyike. Although most students (72%) are confident in their ability to manage their finances, the overwhelming majority (78%) don't know how to budget properly. This is one of the core findings of a survey conducted by Old Mutual among 727 students between the ages of 18 and 25 at Technical and Vocational Education and Training (TVET) colleges across the country as part of its Financial Wellbeing Programme. The survey found that 52% of students confirmed that they have a budget, but don't always stick to it, while a further 25.7% admitted that they don't have time to budget. Only 22% of respondents managed to both have a budget and stick to it. 'The survey findings show that there is a marked discrepancy between students' perception and reality,' comments Manyike. 'While most students feel they are in control of their money, the fact that the majority of them don't budget properly would indicate otherwise.' Another key standout from the survey is that 11% of a smaller sample group of 249 students have some kind of debt, with 20% indicating that they are not coping with their debt. More than 14% of those surveyed said they sometimes or often missed classes due to financial difficulty. Fikile Mbhokota, CEO, and Kingsley Williams, chief investment officer at Satrix were kind enough to share their own hard-won financial lessons for today's young people to take note of. You don't need thousands to begin. Starting with even a small amount can help build the habit of investing early and develop the mindset to see money as a tool for growth, not just spending. This is the time to learn how to live within your means, avoid debt and get creative about saving. Inflation may seem abstract in school textbooks, but in reality its impact is immediate, silently reducing what your money can buy over time. This is why investing early, even in small amounts, helps keep your money growing ahead of inflation. Automating your savings makes consistency easier. Treating investment contributions like a fixed monthly cost helps eliminate the temptation to skip them, even when money feels tight. Your two cents on credit cards Money Cents reader Steven said: 'I was taught at 18 (when I got my first credit card with an enormous R500 limit) that credit is a massively powerful tool which must be used sensibly. 'My parents taught me that instead of leaving my monthly salary in an ordinary current account, I could rather stash it away in a short-notice investment account where it earns interest. All of my spending – and I mean all of it – could go onto my credit card. Their trick was to always pay the full balance back by the due date to avoid the bank charging interest. So, my money was secured, earning good interest, while I was 'spending the bank's money', earning great rewards and not paying a cent of interest. 'The problem comes in where I have to rein myself in when spending, keeping mental notes (courtesy of 'available balance' SMSes from my bank) of how far into my credit limit I'd gone, so that I could afford to pay the full balance back each month. It also takes some planning to ensure the money is withdrawn from my investment account on time each month. 'I'm now 33 and have used this method since receiving my first credit card. I have never missed a payment and have never been charged interest by the bank.' DM

The hidden costs of gambling
The hidden costs of gambling

The Citizen

time02-06-2025

  • Business
  • The Citizen

The hidden costs of gambling

South Africans place over R1 trillion in bets annually, with R700 billion spent on sports betting alone. For many, particularly those with limited financial resources, the appeal of a big win can be incredibly tempting. However, the reality is often more complex. Instead of earning easy money, those who indulge in excessive gambling frequently face financial strain, says John Manyike, Head of Financial Education at Old Mutual. In March, an online betting platform shared a story of someone turning a R4 wager into an astounding R83,701.54. While stories like this grab attention, the rise in online sports betting also brings important considerations. According to the National Gambling Board's 2022/23 gambling statistics, sports betting in South Africa has expanded significantly over the past decade, growing from under 10% of the gambling sector in 2009/10 to over half in 2022/23. 'What stands out is that 36% of those who gamble do so to pay off debts or cover expenses,' explains Manyike, referring to the 2024 Old Mutual Savings and Investment Monitor. Among low-income earners (those earning between R8,000 and R15,000 per month), this figure rises to 41%, highlighting a concerning trend. Understanding the risks Despite rising costs of living and economic pressures, gambling has gained popularity, particularly due to the widespread use of mobile phones and internet access. This is especially evident among young African men. Advertising from betting companies further fuels this trend, increasing participation within this demographic. 'This can be risky, particularly for young people and low-income earners, who may see gambling as a way to improve their financial situation,' says Manyike. However, he notes that losses can add up quickly, sometimes leading to financial stress. 'In a country already facing high unemployment and economic challenges, it's important to be aware of the potential financial pitfalls of gambling.' A game of chance, not strategy Unlike investing, gambling is based purely on luck, yet many believe they can develop a winning approach. The truth is that the house edge ensures that bookmakers maintain a profit over time. For instance, when odds are at -110 on both sides of a bet, a bettor must risk R110 to win R100, meaning even skilled bettors face a statistical disadvantage in the long run. The belief that that the system can be beaten can lead to risky financial decisions. 'Beyond financial losses, gambling can also take a psychological toll,' says Manyike. 'It can lead to stress, anxiety, and even a cycle of chasing previous bets in the hope of recovering losses.' A 2016 study by the University of Cape Town's Department of Psychiatry and Mental Health noted a significant association between suicidality and pathological gambling. It found that pathological gamblers were five to ten times more likely to have a history of suicide attempts than non-gamblers. Furthermore, gambling doesn't just affect individuals—it can have ripple effects on families, sometimes resulting in financial strain for loved ones. 'While gambling is legal,' Manyike points out, 'many people don't fully understand the long-term risks involved due to a lack of financial education.' For those who feel their gambling habits might be affecting their financial well-being, Manyike advises seeking support. 'The South African Responsible Gambling Foundation offers free and confidential counselling services,' he says. Additionally, professional counsellors who specialise in gambling addiction can provide guidance. 'Gambling is not a reliable source of income, and without careful management, it can lead to serious financial setbacks,' concludes Manyike. 'By increasing financial awareness and promoting responsible gambling, we can help people make informed decisions and avoid unnecessary financial risks.' At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!

The hidden costs of SA's gambling crisis
The hidden costs of SA's gambling crisis

IOL News

time02-06-2025

  • Business
  • IOL News

The hidden costs of SA's gambling crisis

In March, an online betting platform shared a story of someone turning a R4 wager into an astounding R83,701.54. While stories like this grab attention, the rise in online sports betting also brings important considerations. South Africans place more than R1 trillion in bets annually, with R700 billion spent on sports betting alone. For many, particularly those with limited financial resources, the appeal of a big win can be incredibly tempting. However, the reality is often more complex. Instead of earning easy money, those who indulge in excessive gambling frequently face financial strain, said John Manyike, Head of Financial Education at Old Mutual. According to the National Gambling Board's 2022/23 gambling statistics, sports betting in South Africa has expanded significantly over the past decade, growing from under 10% of the gambling sector in 2009/10 to over half in 2022/23. 'What stands out is that 36% of those who gamble do so to pay off debts or cover expenses,' explained Manyike, referring to the 2024 Old Mutual Savings and Investment Monitor. Among low-income earners (those earning between R8,000 and R15,000 per month), this figure rises to 41%, highlighting a concerning trend. Despite rising costs of living and economic pressures, gambling has gained popularity, particularly due to the widespread use of mobile phones and internet access. This is especially evident among young African men. Advertising from betting companies further fuels this trend, increasing participation within this demographic. 'This can be risky, particularly for young people and low-income earners, who may see gambling as a way to improve their financial situation,' says Manyike. However, he notes that losses can add up quickly, sometimes leading to financial stress. 'In a country already facing high unemployment and economic challenges, it's important to be aware of the potential financial pitfalls of gambling.' Unlike investing, gambling is based purely on luck, yet many believe they can develop a winning approach. The truth is that the house edge ensures that bookmakers maintain a profit over time. For instance, when odds are at -110 on both sides of a bet, a bettor must risk R110 to win R100, meaning even skilled bettors face a statistical disadvantage in the long run. The belief that that the system can be beaten can lead to risky financial decisions. 'Beyond financial losses, gambling can also take a psychological toll,' said Manyike. 'It can lead to stress, anxiety, and even a cycle of chasing previous bets in the hope of recovering losses.' A 2016 study by the University of Cape Town's Department of Psychiatry and Mental Health noted a significant association between suicidality and pathological gambling. It found that pathological gamblers were five to ten times more likely to have a history of suicide attempts than non-gamblers. Furthermore, gambling doesn't just affect individuals—it can have ripple effects on families, sometimes resulting in financial strain for loved ones. 'While gambling is legal many people don't fully understand the long-term risks involved due to a lack of financial education.' For those who feel their gambling habits might be affecting their financial well-being, Manyike advises seeking support. 'The South African Responsible Gambling Foundation offers free and confidential counselling services,' he added. Additionally, professional counsellors who specialise in gambling addiction can provide guidance. 'Gambling is not a reliable source of income, and without careful management, it can lead to serious financial setbacks. By increasing financial awareness and promoting responsible gambling, we can help people make informed decisions and avoid unnecessary financial risks,' Manyike concluded.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store