Heritage and Cultural DNA in Financial Planning: Why Cookie-Cutter Financial Plans Don’t Cut It

Money is personal. It’s not just about wealth accumulation or investment returns; it’s deeply intertwined with who we are, what we believe, and the stories passed down through generations. As South Africans, our diverse cultural fabric means that financial decisions are often driven by heritage, tradition, and community values. So why do we still rely on cookie-cutter financial advice that doesn’t reflect this?

Imagine walking into a store where everything comes in one size—how often would that fit perfectly? The same goes for financial planning. A one-size-fits-all approach often misses the mark in a country as dynamic as ours, where beliefs shape financial priorities. How we think about money isn't just based on financial principles but on the principles that define our lives.

It's time to challenge the conventional narrative of wealth. We need to redefine financial planning in a way that celebrates the richness of our backgrounds, honouring the deep cultural significance of our financial choices. In this era, it is imperative to understand why the blanket approach has never and will never work, and how embracing our diversity can lead to a more personalised, effective, and empowering financial future for all.

Heritage as the Cornerstone of Financial Values

Our financial decisions are far from Isolated, they are shaped by the values we inherit from our families and communities. In South Africa, where the principle of Ubuntu ("I am because we are") resonates deeply, financial planning often extends beyond individual needs. In many African cultures, wealth is measured not just by personal bank balances but by the well-being of family and community. This sense of collective responsibility means financial priorities often differ from those in cultures where independence is a key focus. A person driven by Ubuntu may prioritise paying for a sibling’s education, supporting an extended family, or contributing to a community fund. Contrast that with a more Western model, which focuses on individual retirement savings or personal investments. Neither approach is inherently better or worse, but each requires a different financial planning strategy. Ignoring these cultural nuances leads to strategies that feel disconnected, impersonal, and ultimately ineffective.

Traditions That Shape Financial Behaviour

Traditions influence not only how we manage money, but what we value most financially. Consider the enduring popularity of stokvels—informal savings clubs where members pool money to achieve common goals. Stokvels represent more than just a way to save; they symbolise trust, community, and shared financial responsibility. For many South Africans, stokvels are the backbone of their financial planning, providing a buffer in times of need or a means to reach long-term financial goals. Then there’s the deeply ingrained practice of investing in cattle or land. In many cultures, these assets are symbols of status and security, often passed down through generations.

Comparing this to more modern financial instruments like cash, derivatives and foreign exchange instruments, it becomes clear why some traditional practices remain so deeply embedded in financial planning.

These choices are reflections of long-standing beliefs about wealth, security, and legacy. Attempting to push everyone toward a singular financial product without understanding these traditions creates a disconnect between financial planning and the reality of people’s lives.

Why the Blanket Approach Falls Short

Financial planning often relies on broad assumptions: that everyone has the same goals, income stability, and risk tolerance—i.e. to retire comfortably. In reality, people’s financial landscapes vary widely, especially in a country as diverse as South Africa. The one-size-fits-all approach assumes uniformity in our financial needs and goals, ignoring the complexities that come with different cultural and familial responsibilities.

For instance, a family-oriented person whose financial obligations include supporting ageing parents, extended family, or contributing to community obligations may struggle to follow the traditional path of focusing solely on retirement savings. A financial advisor who doesn’t consider these nuances may propose strategies that are impractical, unrelatable, and ultimately ineffective.

Cultural blindness in financial planning can also create trust issues. Financial products that feel out of touch with personal or cultural priorities may be seen as irrelevant, leading to disengagement with formal financial institutions. This contributes to lower participation in traditional financial products such as insurance, investment portfolios, or retirement funds.

The Need for Culturally Inclusive Financial Planning

The solution lies in creating a more inclusive and culturally responsive financial planning approach. Financial advisors and institutions must acknowledge the cultural context that shapes their clients' financial choices. This requires more than just awareness—it calls for empathy, understanding, and the ability to translate traditional values into modern financial solutions.

What does this look like in practice? It means offering flexible savings products that reflect irregular income patterns common in informal or gig economies. It means designing investment options that align with the collaborative spirit of stokvels, where trust and collective benefit are paramount. It means Recognising that for some, wealth is measured in land, livestock, or family legacy rather than just cash in the bank.

When financial products and advice respect these cultural differences, they feel more relevant and relatable, encouraging greater participation and better financial outcomes.

Building a Future That Pays Tribute to Our Heritage

To truly serve the financial needs of all South Africans, we need to shift away from cookie-cutter strategies and embrace the richness of our diverse backgrounds. This begins by acknowledging that heritage matters. Financial plans must be as unique as the individuals they serve, taking into account not only personal goals but also the cultural frameworks that shape them.

Financial planning should be about empowerment, not conformity. By Recognising the importance of our beliefs, traditions, and cultural approaches to money, financial advisors can craft solutions that resonate on a deeper, more personal level. It’s not just about managing wealth—it’s about creating financial plans that honours our heritage, build community resilience, and reflect the true diversity of financial needs.

My Culture and Heritage define me.

Our financial lives are woven from the same threads that make up our cultural identities. As South Africans, we come from a rich tapestry of traditions, values, and beliefs, all of which inform how we plan for the future. The blanket approach to financial planning has never worked because it ignores this diversity. Instead, we need strategies that honour and embrace our unique backgrounds, creating a financial system that serves us all more effectively.

By acknowledging the role of heritage in financial decision-making, we can move toward a more inclusive, personalised, and culturally respectful approach—one that truly supports the financial goals of all.