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Esther Devar - Certified Financial Planner

Momentum/UNISA Household Financial Wellness Index

South African households with higher education levels are better off financially, according to a survey released by the newly launched Momentum/UNISA Household Financial Wellness Index. Launched on Thursday, 19 April 2012 in Rosebank, Johannesburg, this index presents unique findings of market research information carried out by the Bureau of Market Research and the Personal Finance Research Unit at Unisa. The findings present an extraordinary picture to help South Africans to understand the state of the nation’s financial wellness.

The report released this week states that until recently, the analysis of trying to define Financial Wellness was determined on the basis of a household’s income statement, comprising income, expenditure and savings alone. Now for the first time, The Momentum/UNISA Household Financial Wellness Index will give a comprehensive and ongoing snapshot of a household’s entire financial wellness, including the income statement, balance sheet – to include assets, liabilities and net worth, along with an assessment of three other influencing factors, namely level of education, living environment and locus of control. Now, a household’s financial wellness will be indicated and understood by more than a straightforward list of liabilities offset against a tally of income and assets.

Four categories of financial wellness have been determined to identify the state of individual households’ financial wellness. The categories were determined by way of an index score where after the percentage of households in each category was determined as follows:
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