1Life Insurance survey indicates a shift in generational debt trends
Johannesburg - A recent 1Life Insurance survey has indicated a shift in generational debt trends among South African women, as they relentlessly pursue financial security amid economic challenges. Over 50% of respondents (led by women) indicated that they do not have generational debt and plan to keep it this way, ensuring they do not pass any debt to their own children.
"Our stats are reflective of the determination that women have to disrupt the cycles of debt within their families and secure a debt-free future for their loved ones, as this study consisted of 75% of female respondents," states Siphelele Sokhela, Brand Manager at 1Life Insurance. "Given the steep increase in food costs, fuel prices, and inflation rates, recent years have underscored the importance of having insurance and savings for tough times. This is crucial for remaining debt-free, a concept South African women have grasped, aiding them in their consistent progress towards achieving and maintaining financial freedom."
33% of the respondents further indicated that they are the primary earners in their families, which has exposed them to the harsh realities of what is required to make ends meet in a challenging economy.
“Being financially secure is not just about having enough for today but planning for the future. As the economy shifts, so do the challenges, which is why having financial back-up such as life insurance in place is important,” continues Sokhela.
While the third annual 1Life Generational Wealth Survey indicated that less than 50% of policyholders have been able to keep all their policies amid the economic challenges, South African women have seen the significance of ensuring that the right insurance is in place when it comes to protecting their family’s generational wealth. The Generational Wealth survey further revealed that 89% of respondents believe Life Cover is a viable wealth building tool, with 62% of the respondents to the recent dipstick survey having life insurance in place.
“The key to becoming and staying debt free is to be financially literate. As economic challenges evolve, it's essential for consumers to equip themselves with the knowledge necessary to manage their cash flow effectively and reduce expenses in a practical manner, all while maintaining their quality of life," states Hayley Parry, Money Coach and Facilitator at 1Life's Truth About Money.
The great thing about living in a digital age is that information has been made easily accessible. For example, 1Life Insurance offers free online financial literacy courses that equip consumers with various money management skills such as how to become debt free, how to keep up with the cost of living, as well as how to build generational wealth.
“As we celebrate Women's Month, we are proud to see how far women have come towards attaining financial freedom and building generational wealth. It is our goal as a business, to continue to empower women to take charge of their financial future through offering them tailored insurance products and making tools such as the free online courses easily accessible,” adds Sokhela.
"Financial literacy is essential for all – it's a potent tool that can pave the way to a more prosperous future for many generations. When women empower themselves by learning to make sound financial choices, cultivating healthy monetary habits, and taking informed decisions, they secure a stress-free financial future for themselves and their families," concludes Parry.
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