The provincial government’s saving plan is bearing fruits. Monthly in-year reports are showing positive change in spending trends. Cash flow situation has never looked so good in months, but the worrying factor is that while government is saving, individuals (households) are not and the trend appears to be getting worse each year.
As an extension of the Provincial Treasury’s Financial Literacy Campaign, KwaZulu-Natal MEC for Finance, Ms Ina Cronjé, is partnering with municipalities in the province, in a bid to encourage citizens from all walks of life to spend responsibly during the festive season and at the same time, reminding them of the importance to save for the future.
This time around, the campaign will be held in Vryheid, Zululand District, on Friday, 19 November 2010, in a bid to ensure that KwaZulu-Natal population is armed with all the information they need to make informed financial decisions. As part of this campaign, Cronjé made a donation of four computers at a local Emadresini Primary School as well as another two at Inkululeko Children’s home.
“We are urging people to spend carefully this festive season so they can afford to pay their expenses and to focus on the obligations that await them at the beginning of 2011 such as school fees, transport to work, food and medical care, amongst others, and being careful about borrowing money,” says MEC Cronjé.
Reports are showing that debt remains a deterrent to saving, with an average household countrywide spending 78.2 percent of their disposable income on debt repayments. MEC Cronjé advises people to stay at home if they did not budget for a year-end holiday. She further advised people to avoid borrowing money to pay for festive season’s expenses and to set aside money for next year's requirements.
This campaign seeks to define savings more broadly to include teaching citizens about saving for rainy days, savings to buy goods, to long-term investment for retirement in a workplace, as well as individual pensions. The campaign comes during the time when resistance to spending is at an all-time low as consumers are bombarded by compelling advertising campaigns.
People need to be conscious of the need to save and ignore the sale signs as new year obligations include school fees for many parents. “We are appealing to the people of KwaZulu-Natal to manage their finances and stay out of debt, everyone must have a strategy in place before the expenses or temptations arise,” says MEC Cronjé.
She believes that the Provincial Treasury needs to take financial literacy to each and every household to guide consumer behaviour during the festive season. MEC Cronjé is tipping citizens to start saving now for 2011 festive season to avoid having to buy on credit. “It works out cheaper and empowers consumers with bargaining power,” she says.
She is appealing to each person to draw a budget and sticking to it. “Budget well for your expenditure by prioritising your expenditures, pay your bills on time, get out of debt as soon as possible, have a plan for emergencies, involve the family in all financial matters, be transparent about payment of the bills,” advises MEC Cronjé.
Citizens are tipped to make presents themselves instead of buying them. “The festive season often leads to unnecessary expenditure.Avoid being unprepared for future eventualities, manage your temptation to overspend and have a saving plan now. When you make your new year’s resolutions, it should be for a fresh start and the start of a saving plan,” concludes MEC Cronjé.
For more information please contact:
Musa Cebisa
Cell: 071 687 8777
