Discover the common financial myths that young professionals believe and learn why financial safeguards are essential for building resilience in an unpredictable world.
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We all like to believe we’re invincible when we’re young, but the reality is that life doesn’t wait until we’re settled as adults before throwing challenges at us. A sudden medical bill, a family emergency, or an unexpected expense can quickly turn a normal month into a financial crisis. And, for many young professionals, the most expensive mistake is believing that these things only happen to other, older, people.
Building financial resilience often feels like a problem for later in life when the reality is that many people begin to support family members or start their own families while still in their twenties – and the moment people depend on you in any way, financial protection becomes necessary.
It’s often not reckless spending that causes financial problems. Instead, it’s a few common myths that play a big role in our future financial well-being.
Myth 1: I’m too young for funeral and life cover
Truth: Life doesn’t wait until you feel ready.
It’s not about your age. It’s about whether someone would be financially affected if you were suddenly not there. If so, then planning ahead becomes part of being responsible, no matter how old you are.
Myth 2: The community will contribute if something happens
Truth: Informal support helps, but it rarely covers all the expenses.
Burial societies and stokvels may provide valuable support, but they rarely cover the full cost of a serious emergency, the long-term financial impact of an illness or disability, or the real cost of a funeral. Without some form of formal protection, families may still have to make difficult financial decisions during an already stressful time.
Myth 3: I’ll sort out my beneficiaries later
Truth: Outdated details can hold up payouts.
Something as simple as a wrong name or ID number on a policy can delay payouts for years, and this is one of the most overlooked aspects of financial planning: It’s easy to take out a policy and then forget about it. But your life changes. Relationships change. It’s important to review policy details regularly so that your cover works the way you want it to, when it matters.
Myth 4: I can’t afford insurance
Truth: You need to prioritise what you spend your money on.
Paying your monthly insurance premiums can feel like a waste until the moment you need to claim. Planning, protecting, and saving should be in your budget from your very first salary, not things you add later.
Myth 5: Borrowing money means you’re irresponsible
Truth: Short-term credit can play an important role in financial resilience.
Responsible and regulated digital lenders can help you to manage financial emergencies without resorting to risky alternatives. Similarly, even buy-now pay-later platforms like PayJustNow offer a structured, interest-free way to pay for things like medical expenses, without relying on things like revolving debt.
Digital financial tools can also help you stay in control. Platforms that allow customers to manage their finances via an app make it easier to review balances or adjust repayments and policies when circumstances change.
The most important shift is a change in mindset. Financial resilience isn’t about expecting the worst. It’s about making sure that, when life surprises you, you have a plan to guide you and a financial fallback to rely on.
* Seyuba is the Weaver People Executive, overseeing PayJustNow and Finchoice.
PERSONAL FINANCE