IT IS July, a winter month, but in the money calender, it is Savings Month!
SunMoney was at the launch of Savings Month in Sandton with experts such as Orlano Makubela, chief director of financial investments and savings at at National Treasury, and Sazini Mojapelo, group head of citizenship at Barclays Africa.
While noting that many Mzansi people were in debt, experts said they should not miss the opportunity to save, no matter how little.
The bank teamed up with the South African Savings Institute to launch National Savings Month. They joined major sponsor the Industrial Development Corporation and other partners in the financial services industry.
Mojapelo said: “One of our commitments in this regard is financial inclusion, incorporating financial literacy training. We want to encourage South Africans to recognise the importance of saving and to save.”
The savings institute’s chairwoman, Prem Govender, said that following SA’s ratings downgrade and subsequent effects on the economy, people were under increasing financial pressure, and needed better knowledge and attitudes towards saving.
“Savings Month reminds people through the media and other channels to strive towards financial freedom or remain vulnerable.”
The institute said employers could play an important role.
“Many South Africans struggle to save. For an alternative solution, we ask employers to facilitate or automate the savings process for those with an income, such as garnish savings options into a tax free saving account and 13th cheques structured as a savings tool.”
Gerald Mwandiambira, the institute’s acting CEO, said it was important to save regardless of the tough economic times.
“Research shows that people with a little extra saved have an emotional security and greater resistance to market shocks and an increased work productivity. We need employers to get involved in their employees’ savings process by helping them with automated savings programmes, especially considering that financially stable employees make productive employees.”
Govender said according to South African Reserve Bank figures, in the last 16 years we have seen a decline in our savings rate, reaching a record low of -2,70 in 2013.
“Financial literacy education from an early age is very important to counteract this trend.”
