Start Smart Student Summit
Government bursary holders and students at the University of Zululand learned that “being broke” and “breaking the bank” is not the way to go. Poor credit records and being blacklisted even before you start earning can impact negatively on your career and potential wealth.
The START SMART STUDENT Summit was organised by the KwaZulu-Natal Financial Literacy Association, a public private partnership under the auspices of Finance MEC Belinda Scott.
More than 500 government bursary holders and students attended the one-day summit near Empangeni. Student money matters have been a very popular topic in the press recently. Many have highlighted the substantial personal challenge this debt burden poses to a generation of 20-somethings who are over-indebted.
Speaking on behalf of Provincial Treasury, Mr Muzi Kubheka, said it was sad to learn about students who have already been blacklisted by the time they start working.
“Being blacklisted means you’ll struggle to get credit or a loan, even for something important like your studies, a house or a car. And even if the bank does give you money, they’ll whack you with a higher interest rate or ask you to pay a big deposit.”
Students were warned by several speakers that poor spending habit could also influence the students’ careers and job prospects. “Financial institutions and government will not recruit you in a position that requires trust, honesty and entails handling of cash or finances if you don’t have a clean credit report. With good reason: We want to protect ourselves and our clients from possible theft. When one is in financial trouble it becomes very tempting to put your fingers in the till,” Mr Khubeka said.
“Currently the KZN Government through the KZNFLA and the Office of the Premier has been working on an action plan to address the huge number of government employees who have Emolument Attachment Orders (popularly known as “garnishees”) against their names. These deductions are only those that the employer effects. In most cases these indebted civil servants also owe loan sharks, family and friends money. We don’t want you to go that route.”
Dr Zethu Mkhize, Dean of Students at the University of Zululand, was very appreciative of the initiative the partnership brought to the university. She said the University will liaise with the National Student Financial Aid Scheme about some recommendations made.
Representing the Office of the Credit Ombudsman, Mr Siyabonga Makhathini shared examples of unfair and wrong credit listings, as well as how paying one’s accounts a day late could affect one’s credit record. He gave hope to those already “guilty” and a way to clear their records.
His presentation raised huge interest among the students. So was Mr Mandla Cele of the National Student Financial Aid Scheme’s presentation on the new NSFAS model.
Speaking on the topic, “Wanna get rich? Here’s how you do it!” Mr Ginger Bester of the Financial Services Board shared the principles of living below one’s means and saving and investing their monies.
Students were encouraged to explore entrepreneurship and informed of the funding opportunities that the National Empowerment Fund and the National Youth Development Agency provide. Mr Phakamile Madonsela of the NEF suggested that students start looking at entrepreneurial opportunities on campuses. “Why not exploring a campus flea market?” He told students that more people are needed to create jobs than ask for jobs. “There are several funding avenues that government has that they can tap into.
Mr Artwell Hlengwa, KZNFLA Chair thanked all the partners for their contributions, their time and expertise and encouraged the students to take control of their finances and credit, as well as those who are interested in entrepreneurship, to take up the opportunities.
For more information please contact:
Ntokozo Maphisa
Cell: 082 773 0937
E-mail: ntokozo.maphisa@kzntreasury.gov.za / ntokozo.maphisa@yahoo.com / ntokozo.maphisa@gmail.com
Zama Mkhize
Cell: 076 505 6551
E-mail: busisiwe.mkhize@kzntreasury.gov.za
