While the country's household saving rate remains below zero, encouraging developments are emerging from the private sector.

One such example is fintech platform Paymenow, which provides earned wage access to users. The company reports that over two and a half million financial education modules have been completed through its platform, reflecting a growing desire among South Africans to better understand and manage their money.

Denise Neethling, Head of Marketing at Paymenow, says the trend signals a strong commitment by users to improve their financial futures. She explains that many people are seeking guidance on how to budget, save, and spend wisely, with the most popular modules focused on understanding and improving credit scores.

“This shows people want control over their financial wellbeing,” says Neethling. “Improving your credit score not only influences access to loans or housing but can also affect job opportunities, as employers often conduct credit checks.”

Data from Paymenow also points to a shift in behaviour. Users who complete financial education are more likely to choose vouchers for essential goods such as groceries or electricity, rather than withdrawing cash. This option helps them avoid service fees and manage their earnings more efficiently. In addition, users typically access only 14% of their available wages, despite being eligible for a higher percentage.

“This indicates people are thinking differently about money they have earned versus money they borrow. It's a positive shift,” says Neethling.

The platform's impact goes beyond immediate financial decisions. A study involving Paymenow and JPMorgan showed that users with access to earned wage tools and financial education recorded improvements in credit scores compared to those without such access.

Neethling believes financial education should begin much earlier, even at primary school level, and be presented in ways that engage young learners. She highlights the benefits of gamified learning, which has helped Paymenow reach thousands of users.

“Financial literacy should be introduced long before adulthood. Teaching these skills early can prevent financial distress later in life,” she says.

With July dedicated to promoting savings, Paymenow is encouraging more South Africans to explore its tools and join the movement towards stronger financial habits.  

--ChannelAfrica--