Manage your money, instead of letting it manage you

Johannesburg - As South Africans gear up for Youth Month, it’s time to flip the script. To be young isn’t just a phase; it’s a launchpad. And the smartest way to get off the runway and soar is to prioritise financial planning.

Too many young South Africans believe they’ll only “worry about money later”. But the truth is, your first salary, side hustle or online gig is more than just income. Jessica Pillay, Financial Adviser at Momentum Financial Planning, says being young sets the stage for your journey to success.

“Taking charge of your money early gives you a massive head start,” says Pillay. “Financial planning isn’t about how much you earn. It's about what you do with what you have and the habits you build along the way.”

With youth unemployment remaining at record highs, rising student debt, and a cost-of-living crisis to contend with, building wealth can feel out of reach. But Pillay says small, smart moves today can unlock big wins tomorrow.

For young South Africans looking to thrive, Pillay shares four money moves that matter now:

1. Start saving for retirement

Compound interest works like magic over time. Even a small amount saved consistently from your twenties can snowball into a significant retirement nest egg. The earlier you start, the more time your money has to grow.

Many young earners don’t even realise that retirement savings also come with tax perks. Contributions to retirement plans are tax-deductible, up to 27.5% of your taxable income. That’s money back in your pocket while you invest in your future.

2. Build your emergency fund

Car trouble, broken appliances, job loss. Life happens. And when it does, an emergency fund is the financial safety net that will keep your life moving forward. Aim for at least three months’ worth of essential expenses,” says Pillay “It helps you avoid debt and gives you peace of mind.

3. Don’t confuse credit with cash

Credit cards and clothing accounts can be helpful, but only when managed wisely. “It’s easy to fall into the trap of treating credit as money you have on hand. But remember, debt comes with interest, and the more you borrow, the more you pay back. It doesn’t take long to start drowning in it.”

Learning how to build credit responsibly, such as paying off balances in full and on time, can open doors later on, like qualifying for a home loan or better interest rates.

4. Protect yourself with insurance

Medical emergencies, accidents or a sudden disability can have long-lasting financial consequences. “Young people often overlook insurance, but it’s vital,” says Pillay. “Without medical aid or life and disability cover, one unexpected event can wipe out your savings or leave you financially stranded.”

Ask questions. Own your journey.

Financial advisers aren’t just for the wealthy or the old. They’re coaches, mentors, and sounding boards whose sole purpose is to help you weave through complex decisions and set achievable goals. Whether you’re planning your first big purchase, figuring out how to budget, or exploring investments, guidance from a trusted expert can help you avoid costly mistakes.

“Your first step doesn’t have to be perfect, it just has to be intentional,” advises Pillay. “And you don’t have to walk this journey alone. There’s an adviser out there that’s perfect for you and your journey.”

So, as Youth Month begins, make your move. Because owning your financial story starts before the 16^th of June. It starts now!