Nedbank recently had the privilege of sitting down with South African football legend Stanton Fredericks at the Ya Rona House to delve into the world of financial education. As a prominent figure in the football community, Fredericks offers valuable insights into the financial challenges faced by athletes and the importance of financial literacy.
With the unpredictable nature of income post-football, Fredericks emphasises the importance of setting and prioritising financial goals. ‘Investing and saving are essential for anyone receiving an income,’ says Fredericks. As someone with an understanding of the importance of financial literacy, he adopts a conservative investment approach, focusing on lower-risk investments. He highlights the importance of consulting a qualified financial adviser when it comes to the significance of investing in property, especially in areas with potential growth.
Reflecting on his illustrious career, Fredericks acknowledges that he is continually learning to be smarter with his money. He advises younger players to start saving early, understanding that their earning duration is limited. ‘The earlier you start saving, the better your transition to retirement will be,’ Fredericks advises.
Understanding the basics of managing finances has positively influenced Frederick’s decision-making, both personally and professionally. ‘Once you know you can’t spend more than you receive, you start making better decisions,’ he explains. From managing income versus expenses to considering the cost of rent and vehicle installments, financial literacy plays a pivotal role in making informed choices.
As a public figure, Fredericks believes there is a responsibility to educate aspiring and current footballers about money management. ‘It’s our obligation as ex-footballers to share experiences, challenges, and solutions to help them limit the mistakes we’ve made,’ he asserts.
Fredericks warns young football enthusiasts about common financial pitfalls. He cautions against viewing cars as investments due to their rapid depreciation and advises choosing friends wisely. Understanding the limited career duration, he stresses the importance of maximising earning and saving potential.
One of the biggest misconceptions that Fredericks addresses is the assumption that footballers earn millions from the start of their careers. He also challenges the perception that players are arrogant and unapproachable. ‘This is not the case for most players,’ Fredericks clarifies.
Reflecting on his journey, Fredericks identifies feeling obligated to help everyone as his biggest financial setback. He advises learning early on that ‘you can’t help everyone.’
Fredericks believes that the discipline and teamwork learned in football can be applied to financial decision-making. He emphasises the importance of punctuality, communication, determination, and navigating difficult situations—traits that are honed on the field and that are equally valuable in financial management.
Finally, Fredericks envisions financial education being integrated into the broader football community. He believes that players, as custodians of the game, can lead by example, influencing vendors, security staff, and fans alike. ‘The better they manage their finances, the more they can be the voice of advice,’ Fredericks concludes.
Nedbank remains committed to promoting financial literacy, and conversations like these with Stanton Fredericks serve as valuable reminders of the importance of informed financial decision-making, especially for those in the spotlight.
