It would be fair to say that recent unexpected events of the COVID-19 pandemic must have been the first severe economic crisis of the South African youth. And, it is, therefore, important that they incorporate specific characteristics to build a firm financial foundation to deal with any future emergencies, and to enhance their resilience after such events.
The current shock/perhaps the aftershock of the pandemic that the world is encountering can surely have a big impact on the younger generation. It may so happen that many individuals have been financially unprepared for such a time as this. And, while various healthcare professionals are still fighting hard to curb health problems, the youth may be more vulnerable (than ever before) to the financial implications and ongoing or aftereffects of the pandemic.
So, how do the youngsters deal with upcoming emergencies or the latest blow? And, how can they better prepare themselves to accumulate resilience to handle or deal with the aftereffects of crisis-type events?
The below characteristics can help the younger generation individuals improve their financial resilience, especially dealing with the consequences of an unplanned emergency. Youngsters need to make sure they are:
Regarding the outlook they have of their current circumstances. They did not have the power to prevent an emergency, like the Coronavirus, for example. BUT, they can take responsibility for what they can do, and step up to better prepare their financials before another crisis comes knocking.
When it comes to their financial plans. They have to organise and develop an agile financial plan to work with the sudden change they have to deal with. They have to start at point A (like taking a look at their overall financial position) and finish at point Z (for example, to outline a plan of action how they can manage their money better and with what resources they already have available do just that).
In their communication and ‘action ways’ to try their best to work with the change that has occurred. They have to communicate any concerns or questions they have with their trusted financial advisors out there. And, when it comes to their financial action plans, they need to put proactive options in place, like an emergency fund or insurance to handle a crisis like illness or an accident, for example in the future. Or, when facing severe debt – although hard – choose the best option to FIX their DEBT piles as soon as possible, and, NOT when it is too late.
When it comes to an extra side hustle, for example. South Africa’s unemployment rate is shockingly high and, therefore, the ideal opportunity for youngsters to up-skill themselves and remaining employable in today’s ever so competitive work or labour market.
To, for example, be open to increase their financial knowledge and know what options are available to help and gain new insight/channels to deal with their shift in circumstances. When it comes to fixing debt – they need to be willing to implement small habits/behavioural tweaks to help them along. Or, if things are really bad, get into the habit and realisation of getting the help they need to fix debt sooner rather than later.
Young individuals have a lot of potential to offer and should grab every opportunity they get to build financial resilience, especially after a crisis has occurred. It is, therefore, important that they upkeep the essential characteristics needed to face any unnerving situation or the aftereffects thereof.