As National Savings Month aligns with the South African Revenue Service (SARS) tax season, a critical conversation has resurfaced—how financial literacy shapes workplace productivity. According to Sandra Pretorius, General Manager at Afri Training Institute, the connection between personal finances and professional performance is often underestimated.
“Every year around this time, I am reminded of a truth that rarely makes it into boardroom conversations: financial stress walks into work with your employees every day. It does not matter whether someone is earning R6,000 or R60,000 a month; if they are struggling to manage their money, they are distracted, anxious, and more likely to disengage,” she says.
The real cost of financial stress
To build high-performing teams, businesses are investing heavily in skills development, incentives, and wellness initiatives. However, Pretorius urges leaders to dig deeper. “Confidence in personal finances leads to confidence in performance, decision-making, and loyalty. That is why financial literacy has become a business imperative,” she adds.
Research supports this assertion. Only about 51% of South Africans understand essential financial skills like budgeting and saving. A 2024 Money Stress Tracker by DebtBusters revealed that 75% of respondents experience financial stress, with 93% reporting an impact on their home lives, 76% on their work, and 74% on their health.
“Younger employees are especially vulnerable. They enter the workforce without the necessary financial knowledge to plan their finances or prepare for unexpected costs,” Pretorius explains. “But I’ve also seen financially overwhelmed employees earning more than R50,000 a month. If you don’t know how to manage your income, the amount you earn doesn’t matter; it just keeps disappearing.”
Financial literacy in action
While many businesses rely on once-off wellness workshops, Pretorius believes lasting change lies in continuous, practical support. “At our company, we host internal financial literacy programmes that focus on everyday money habits—budgeting, managing debt, and building a savings mindset. The result? More focused, resilient employees with stronger interpersonal relationships and improved job satisfaction.”
These internal sessions have proven so effective that Pretorius now encourages other organisations to consider similar financial education initiatives. “This isn’t about long lectures or financial jargon. It’s about showing people how to take control of their money so they can show up more confidently at work,” she says.
Why business leaders should care
The benefits of improved financial literacy go beyond employee wellbeing; they impact the bottom line. Financially empowered workers are less likely to call in sick, switch jobs, or become disengaged. They also contribute to a more stable and motivated workforce, enhancing overall financial stability for both employees and the company.
“I have seen firsthand how people show up differently at work when they feel more in control of their money,” says Pretorius. “They are less anxious, more present, and more likely to stick around. This kind of financial literacy training helps create a work environment where people can focus on doing their jobs without that constant mental burden.”
Financial literacy as a talent strategy
For human resource and talent teams under pressure to retain top performers and build sustainable pipelines, financial literacy offers a low-cost, high-impact solution. Pretorius sees it as an underutilised tool in modern HR strategy. “It ticks both the human and compliance boxes, especially as regulations around employee wellbeing grow stronger.”
“As tax season gets underway, I want to encourage business leaders to move beyond the usual thinking. Don’t just ask, ‘what are we paying people?’ rather ask, ‘are we equipping our people with the financial education and resources they need to make their money work?’” Pretorius concludes.
Financial literacy is not just about personal finance management; it’s about creating a workforce that is financially aware and capable. By investing in financial wellness programmes and promoting financial literacy, companies can improve employee retention, boost productivity, and foster a culture of financial well-being. This approach to financial education in the workplace can lead to better financial behaviours, increased financial empowerment, and ultimately, a more engaged and productive workforce.
Because when your people feel financially capable and have strong financial management skills, everything else becomes easier. It’s not just about financial planning for individuals; it’s about building a foundation for better financial health across the entire organisation.
