Mothers have the most influence over the current financial behaviour of people. This has been revealed in a survey. The poll by leading digital bank, Capitec, done in celebration of Heritage Day, highlights how South Africans’ cultural backgrounds and family traditions continue to influence their financial beliefs and behaviour.

Mothers on current financial behaviours

The survey found that 72% of respondents said their mothers have the most significant influence over their current financial beliefs and behaviours.

The Head of Brand and Communications at Capitec, Asha Patel says the poll reflects how South Africans’ heritage shapes who they are, including how they manage their finances.

The “Family Tax”

She says as the bank is serving more than 22 million clients, which is equivalent to a third of the country’s population, they are in an ideal position to understand what has shaped the money habits of many citizens.

Patel added, “For example, our poll revealed that 16% of respondents still support their extended family financially. This finding points to the reality of our society’s informal social contract of ‘family tax’.”

She says this Family-tax will see individuals supporting extended family members, beyond their immediate ones.

This will influence financial responsibilities and priorities. At the same time, these local insights can help the bank to create modern solutions that resonate with the cultural values of people.

Traditional savings methods 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.

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.

Blending traditional 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. At the same time, 23% still save cash at home. This indicates that traditional practices still exist alongside modern banking methods.

Interestingly, 49% of participants use traditional and modern approaches in their financial decision-making.

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. This allows 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.

She added, that 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.

 “Our approach ensures that clients don’t have to choose between heritage and innovation – they can have the best of both worlds,” concludes Patel.

WRITTEN IN CONJUNCTION WITH THE MEDIA TEAM AT CAPITEC