We love you Tata
We love you Tata
We love you Tata Madiba
Happy birthday to you! (sing along)
Today we are celebrating the birthday of someone so special that the whole world decided to name 18 July after him. Yes, today is International Nelson Mandela Day.
Who can tell us how old is Tata Mandela today? Yes, he has been on this earth for 93 years today. When we look at him we see ways to change our world for the better. For 67 years of his life he used all his energy and time to fight for non-racialism, reconciliation, conflict resolution and equal human rights.
Today ordinary people across the world are called to follow Tata Mandela’s example of serving the people, by giving 67 minutes of their time doing something that will help society.
This is exactly what hundreds of bankers and other money experts will be doing at schools today and for the next two weeks across the country. These money experts have chosen to give their time to education, which Tata Mandela says, is the most powerful weapon which we can use to change the world. The education that our children will receive from these money masters will certainly help them to change their own worlds.
The lessons that our children will be receiving in money management and saving through this brilliant initiative of the Banking Association South Africa and the Savings Institute of South Africa are designed to lead our children to financial freedom and wealth. It will teach them to Save for a Better Future (2011 slogan).
Importance of saving
Government saving:
Government must also save for the future. If government does not save, it will not have enough money to build roads, new schools, hospitals, or enough money to pay your teachers. That will force South Africa to go and borrow money. It is very expensive to borrow money because you have to pay back the money plus interest and you end up paying more than the money you have borrowed.
In KwaZulu-Natal government has implemented cost-cutting measures to pay back debt. These measures have helped us to save enough money to pay back all our debt, which means that we have more money to spend on service delivery.
Household saving:
It is also important for children and families to save. Saving can help you achieve any financial goal. (Ask children about their financial goals).
You can get there by setting money aside. And best of all, you can have what you want without being drowned in debt. But there are three basic secrets to saving.
Saving secrets:
Secret 1: planning to save for the future
The first secret is to plan.
Secret 2: paying yourself first
The second secret of saving is to pay yourself first. When you pay yourself first, you first save before your spend. We all make that mistake sometimes by going to the shop first and think that we will save the money that is left when we have finished buying. big mistake.
Before you buy anything, put that money into your savings box.
Secret 3: spend less than what you receive
I know that the money experts will be teaching you the difference between wants and needs. If you can learn that difference from an early age, you are on the road to success. Many adults still fall into that trap.
Sometimes we need to retrain our minds to be satisfied with what we have. We all need clothing but do you really need an expensive branded jean at the cost of R500 or can you buy a cheaper branded jean for R100 or less? Wearing clothes from a less expensive store does not make you inferior. You must also know how much your parents can afford. Help them to live within their means by not putting pressure on them to buy more expensive items that they cannot afford. If you really want that expensive jean, start saving and raising money your own money, e.g. by selling popcorn.
Delayed gratification
When we need something, we usually need it now. When we want something, we usually can wait. The next time you think you need to buy something, wait at least for a week. You will often find that the excitement to buy the product has diminished and you don’t really need it and you should not buy it.
Value for money
Shop around before your buy. When you have to buy something, make sure that you don’t pay more for something than its real value. The cost of an orange differs. I paid R1.25 for an orange at a shop in Pietermaritzburg. Near my house further up a shop sells them for R5.00 an orange! And if you buy a pocket of oranges at a price of R15 per pocket, an orange can cost you even less than R1.00. It is good to buy in bulk.
It is also cheaper and healthier to make sandwiches the night before to take to school the following day, rather than buying “something” at school. You can put anything on the bread – even a spoonful of spinach or potatoes that was left of dinner if you don’t have peanut butter or jam left.
Help your family to start your own vegetable garden and to keep chickens. Then you don’t even have to buy spinach or eggs.
Living a frugal lifestyle pays off
One of the lessons that we can learn from Tata Madiba is humility. He has remained humble, caring for the people of his country more than splashing on expensive clothes, cars and houses. Unfortunately flash and bling have become the norm in many households. We spend money we often don’t have on fancier cars, clothes, houses and holidays.
Even when we do earn enough money we don’t have to spend it all on luxury items. Like many great people, one of the world’s richest people, Warren Buffet also had a humble beginning. He started his first business when he was only six years old. He made money through reselling 6-packs of cold drinks and chewing gum.
When he got married he rented a home with three rooms for him and his wife. The house was falling apart with mice running around. The bed their baby daughter slept in was a drawer. When he finally bought a house at a good price it was a small one. He still lives in that house today. This same Warren Buffet said, “Preparation is everything. Noah did not start building the ark when it was raining.”
Saving is not always easy because there are always things that we think we need or want. But the only way to afford these items is to save whenever you get some money. If you save 10 cents of every R1 that has been given to you, you will soon have rands and no longer cents.
Smart money habits begin early. Our country needs financially smart children if we want our children to be financially secure adults. It is proven time and time again that children who are exposed to financial education concepts are more likely to become financially independent.
We want to thank the Banking Association, South African Savings Institute (SASI) and all the volunteers who will be participating in this programme. I am happy to hear that the majority of the entities are members of the KZN Financial Literacy Association, of which I am the champion.
As Nelson Mandela said, “your playing small does not serve the world.... And as we let our light shine, we unconsciously give other people permission to do the same. As we are liberated from our own fear our presence automatically liberates others.”
Happy teaching to all our money teachers! And happy saving to our children!
Forward to financial literacy! Phambili!
I thank you.
