Can someone please explain to me the total lack of personal financial planning and knowledge in this country?

[aquiles]

I’m foreign and have hired a team of South Africans. Most are are young, 1-3 years out of school, and have few financial responsibilities. Not married, no kids, living with family, paid off student car, etc. I like to think I’m paying them well. The lowest paid employee makes over 20K/month. The highest is sitting around 40K.

These guys are broke always and are constantly complaining about their wages. Their car breaks down, they can’t fix it. Where is the money going? It truly doesn’t add up to me.

It makes it really difficult for me to determine appropriate wages here.

 

[saira123]

@aquiles Unemployment is around 40%. I am quite sure that money goes to helping other family members. We once had an informal check around our guys and the average was 10 people who were dependant on that salary.

 

[itrailblaze]

@saira123 This is spot on, the guys OP is talking about may not have kids but they most probably have dependents that rely on their salary to get by

 

[strongmom]

@aquiles Business Day recently put out a report that pretty much anyone earning below 25k is not coping right now. Cost of living, especially in Cape Town is extremely high, food alone has tripled in price since a year ago. Now add in medical aid, retirement annuity (you don’t mention you provide these things) rent, car payment + insurance or Uber costs (if no car), and most people are living paycheck to paycheck (like most of the world right now). So any big purchase or unexpected cost is going to be an issue. Plus don’t underestimate the fact that your employees may be supporting their families in some way, the black/coloured tax is very real.

 

[kat1941]

@strongmom This should be higher

 

[samenewme]

@strongmom Do you have a link for this? I've tried searching but can't find it. Would love to read

 

[strongmom]

@samenewme https://businesstech.co.za/news/fin...-south-africans-earning-under-r25000-a-month/ Sorry was under the BusinessTech banner

 

[proundcatholic]

@aquiles Most of the money goes to helping extended family and friends. 20K pm is not a lot.