With South Africans feeling the pinch of tough financial times, this World Savings Day (October 31, 2022) people need to make every cent count.
Himal Parbhoo, CEO of FNB Cash Investments said there is a low savings culture in the country due to a culture of consumption, and restricted use of formal savings tools.
“We would like to believe that most people see and understand the benefits of saving but tend to park it for a later stage in life when they have a better or bigger income,” Parbhoo said.
Here are five different ways people can activate the discipline of saving in their daily lives:
Money jar
The money jar or piggy bank has been the traditional way of saving, but South Africans have taken it a step further by using 2-litre or 5-litre plastic bottles and ice-cream containers as vessels for saving their money.
South Africans are showing the different ways that they are turning their 5-litre bottles into a money jar.
@sesivunkiie09 Bottle Saving 😋💰#fypシ #ticktoksouthafrica #savingmoney #fyp #savingschallenge2022 #bottlecapchallenge #mzansitiktok ♬ Play Date - Melanie Martinez
@michaelamavosa I couldn't find a 5 liter bottle,but this will do🥺small beginnings❤#5literbottlemoney #savingmoney ♬ Dropline - pabi_cooper
“Calculate how much money you’ve saved once the bottles or containers are full. You can either deposit that money in a savings account or use it to purchase that one item you’ve always wanted,” Parbhoo said.
Chores
Rewarding your children for chores that they have done is an interactive and creative way of getting them to grasp a culture of savings.
You can choose the reward amount for chores completed such as tidying their bedrooms, doing the dishes, clearing the table or washing the car.
Parbhoo said that the primary rule is letting children know that for every chore they get paid for, they need to save a certain amount or percentage towards an item that they have wanted you to buy such as a branded soccer ball, a skateboard or PlayStation 5
Lindiwe Miyambu, group executive: human capital, African Bank, said: “Don’t just dish out pocket money; encourage your children to rather see this as commission for tasks done. This way money is earned, not simply handed over.”
Reduce your spending
Individuals or families need to look at their daily or weekly spending of buying lunch at work or school, as well as that morning coffee that they buy on the way to the office. Instead, pack a sandwich or last night’s dinner for lunch. You can make it a group activity with your family so everyone is chipping in to help.
With load shedding still upon us, people can save money by investing in rechargeable solar lights or the classic paraffin lantern lamp lights. If power outages hit on a weekend, consider having a braai or planning your cooking around the load shedding instead of buying a takeaway.
If you are worried about spending too much on petrol, join or start a work lift club. Another option is to speak to your boss about working from home for a few days.
Group savings
Stokvels are a genuine way for you to start saving collectively with family, friends colleagues or other acquaintances who have same or similar financial goals.
Parhoo said many South Africans choose to start their own stokvel or join a stokvel as a disciplined way of saving, while also achieving a collective financial goal with other people.
“Starting or joining a stokvel with a group of trusted people will also help individuals go far with the savings journey, especially in the spirit of ubuntu as South Africans. Stokvels are commonly known or used for a burial or grocery society, but it has now evolved to people group savings for building or buying a property or a holiday,” Parbhoo said.
Financial literacy
According to Susan Steward, spokesperson for Budget Insurance, knowledge is power when it comes to saving money.
“The web is filled with free explainers on financial concepts and terminology, life hacks and tips to get the best bang for your buck, advice on negotiating better interest rates and pro tips from experts on how to make better money decisions,” Steward said.
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