VENTURES AFRICA- The lack of education and training holds many South Africans back from taking charge of their savings and investments. This is according to a self-investment survey conducted among 2‚760 respondents, who had shown an interest in self investing, by online trading platform, Global trader.
According to the head of online trading at Global Trader, James Saulez‚ only about 300,000 South Africans are involved in the self-directed investor market while the rest of the population rely on other people to manage their financial wellbeing.
The survey indicated that 80 percent of respondents said they would consider self investing while about 75 percent of respondents indicated that they needed more help. Of the respondents who were first time or novice investors‚ 43 percent indicated that a lack of education in terms of investments was preventing them from self investing, Business live reported.
The population that keeps close watch on their investment in South Africa is very low compared to 61 percent in Australia.
Saulez stated that 61 percent of Australians are self invested‚ and the population had a strong culture for managing their own financial wellbeing.
This largely came down to education at both schools and financial institutions. He argued that there is need for people to take greater control and interest in their investment.
According to him, practical money skills were not being taught enough at schools‚ and there was “certainly a role that learning institutions can play” in addressing the problem‚ but there was also a role that financial service providers needed to play themselves.
“Providers are not going the extra mile to educate”‚ and they were only providing trading platforms and “superficial education.”