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Life is full of important moments that bring families together. Funerals, weddings, lobola negotiations, initiation ceremonies and graduations are often about more than just the event itself. They are about family, culture, respect and honouring the people we care about. As we celebrate Heritage Month, it is a good time to think about how these important traditions affect our finances.

The challenge is not culture or traditions. Traditions enrich our lives and strengthen our sense of identity. However, when social expectations become financially overwhelming, they can place households under significant financial strain.

The challenge is whether families are able to make financial decisions that reflect what they can realistically afford. A funeral can include transport, accommodation, burial arrangements, flowers and catering costs. A wedding can expand beyond the original budget as guest lists grow and family expectations increase. Family obligations often arise unexpectedly, making it difficult to prepare financially.

In many households, saying “I cannot afford this” is difficult. People may fear being perceived as disrespectful, ungrateful or unwilling to fulfil family obligations. Yet the financial consequences of overspending can last far longer than the event itself.

This pressure is compounded by the reality that many consumers are already struggling with everyday financial costs. The Financial Sector Conduct Authority's (FSCA) Financial Customer Behaviour and Sentiment Study found that 47% of respondents believed the costs of financial products and services were 'much too high' highlighting the financial strain many households face even before unexpected family or cultural expenses arise. When families take on debt, deplete savings or divert resources away from essential needs, the consequences can affect household wellbeing long after the event has passed.

Social media has intensified this pressure. Funerals, weddings and family celebrations are increasingly displayed online, creating opportunities for comparison. What people see are the marquees, décor, catering and outfits. What they do not see are the loans, depleted savings, maxed-out credit cards or financial sacrifices behind those displays.

This does not mean families should abandon tradition. Rather, it invites us to separate meaningful cultural practices from unnecessary financial display. A dignified funeral or memorable wedding should not be measured solely by the amount spent.

For many households, funeral insurance is one way of preparing for one of life’s difficult and costly moments. However, having a policy is not the same as having certainty.

Before purchasing funeral insurance, consumers should make sure they understand:

• ​Who is covered by the policy.
• What benefits will be paid.
• Whether there are waiting periods or exclusions.
• What documents will be needed when claiming.

It is also important to make sure that the provider is authorised to sell financial products and services, in particular funeral insurance. Consumers should also review the funeral cover they already have before purchasing additional policies. Paying for multiple policies can lead to financial strain and policy lapses due to unaffordable premiums.

Consumer should be aware of recourse mechanisms. Where claims are rejected, consumers should:

• Follow the provider's internal complaints process.
• If the matter remains unresolved, seek assistance from the National Financial Ombud (NFO).
• Report suspected misconduct or unauthorised financial activities to the FSCA.

These practical consumer protection steps form part of a broader approach to financial resilience. Preparing financially, understanding insurance products, and making informed decisions can help families navigate difficult life events without exposing themselves to unnecessary financial risk.

Financial resilience is often discussed in terms of savings, debt and investments.  It should also include the ability to navigate moments when love, culture and money intersect. Financial dignity means being able to honour loved ones, fulfil meaningful cultural obligations and participate in community life without compromising the wellbeing of those who remain.

Before you spend, pause and plan. Set a budget, understand your financial commitments and make informed decisions. Do not let social pressure push you into debt or financial hardship.

You can celebrate your culture, honour your loved ones and still protect your financial future. For more consumer financial education resources and tips, visit the FSCA's consumer education platforms and make every financial decision count.​

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For more articles and FREE financial literacy information visit www.fscamymoney.co.za or to request a financial literacy workshop, kindly email CED.Consumer@fsca.co.za

Alternatively contact the Financial Sector Conduct Authority (FSCA) on 012 428 8000 or 0800 20 3722 and ask to speak to one of our call centre agents.

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X: @fscasouthafrica​

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Website: www.fsca.co.za

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