In South Africa, Visa Inc. will work with the Financial Services Consumer Education Foundation (FSCEF). The partnership will support South African financial education and is valued at $200,000 (R3.35 million)
The partnership is specifically focused on two financial education programs: The Financial Literacy Speech Competition for Schools and Financial Literacy for Students in Tertiary Institutions.
Both programmes are anticipated to reach approximately 7,500 young people.
The financial Literacy Speech Competition for Schools programme will take place in Cape Town on the 14th of October 2022. Recognition and prizes are awarded after each round, while the top 3 winners of the National final will also receive fully paid bursaries to study at any institution of their choice within the South African borders. The bursaries include tuition fees, textbooks, accommodation, logistics and a stipend for living expenses.
The Financial Literacy For Students In Tertiary Institutions
The Financial Literacy for Students in Tertiary Institutions targets first-year students at five institutions. For most students, this is the time they are required to start managing their finances independently, and for most, if not all, it is the first time they are exposed to credit.
If students are not educated about managing their personal finances, they will not be prepared to responsibly manage their bursary funds, student loans and other forms of income at national disposal. The programme will be conducted through an interactive approach where a panel of financial education experts will present relevant financial education topics.
Topics will include Money Management (the importance of financial literacy), Debt Management (credit score and how to handle your finances) and Wealth Creation (savings and investment, scams, and tips on starting a business.
Visa Inc.’s Statement
Speaking during the announcement, the Vice President of Visa Inc. who is in charge of the company’s Social Impact in Central and Eastern Europe, Middle East, and Africa, states that “at Visa Our partnership with Foundation is to drive access to financial education for young people where they are.
Furthermore, it provides better conditions for financial consumer protection while strengthening their pathway to financial inclusion. It is through developing and applying life skills that young people are better able to take control of their money and their future. For nearly two decades, Visa’s financial literacy programmes have educated millions of children and adults in more than 30 countries on managing their money wisely. The programmes are designed to ensure that as individuals gain access to financial services, they do so with a sound understanding of money management.”
What Is Financial Education?
South Africa’s Organization for Economic Co-operation and Development (OECD) defines financial education as ‘the process by which financial consumers/investors improve their understanding of financial products, concepts and risks and, through information, instruction and/or objective advice, develop the skills and confidence to become more aware of financial risks and opportunities, to make informed choices, to know where to go for help, and to take other effective actions to improve their financial well-being’.
The Financial Services Consumer Education Foundation
The FSCEF is a local non-profit organisation established in 2004 by the Financial Sector Conduct Authority (previously known as the Financial Services Board). It aims to fund consumer initiatives that will help to increase financial literacy and equip people with the information, tools, and knowledge required to make smarter financial decisions.
South Africa’s Long Walk To Financial Literacy
A baseline study on financial knowledge, attitudes, skills and behaviours among South African consumers that was conducted by the Financial Services Board (FSB), concluded that many South Africans displayed low levels of financial literacy. This implies that a significant part of the population is ill-equipped to make sound financial decisions.
In February 2011, The National Treasury of South Africa released a policy statement titled “A safer financial sector to serve South Africa better”. The policy aims to maintain financial stability, strengthen consumer protection and ensure the appropriateness, accessibility and affordability of financial services for all South Africans.
The policy statement projects consumer financial education as one of the components of a comprehensive solution for protecting consumers of financial services. Financial education contributes to the improved financial capability of consumers.
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The national consumer financial education strategy identifies four domains of financial education programmes: Financial control, financial planning, product choice and financial knowledge.
It further highlights that consumer financial education is a shared responsibility among many stakeholders, including government, schools, financial institutions, industry associations, employers, trade unions, community organizations, and NGOs.
About Visa Inc.
Visa Inc. is an American multinational financial services corporation. The company engages in the provision of digital payment services. It also facilitates global commerce by transferring value and information among the global network of consumers, merchants, financial institutions, businesses, strategic partners, and government entities. It offers debit card, credit card, prepaid products, commercial payment solutions, and global ATM. The company was founded by Dee Hock in 1958 and is headquartered in San Francisco, CA.
