The MEC for Finance in KwaZulu-Natal, Belinda Scott, today dished out saving tips to thousands of Clermont residents who gathered at Christiananburg Stadium under the theme “my savings, my future: lets build”.
The event, led by Scott and head of Treasury, Simiso Magagula was meant to teach and encourage people to save for a brighter tomorrow. The event held during July as the saving month is KwaZulu-Natal (KZN)Treasury’s flagship campaign that teaches people the need to learn to manage their finances properly.
Addressing the residents, Scott said people need to avoid bad borrowing which is borrowing money to buy fancy clothes, buy an expensive sound system and to buy booze instead of borrowing to pay for school fees and to buy a house.
“Avoid buying on credit because you end up paying more money than you would had you saved money to buy items cash. It is important to save whatever amount you can afford for a year or two so that you can buy things cash,” said Scott.
She said it is important to discuss as families the saving plan and identify items that you want to buy cash after a specified period of time.
“We want you to do this as a habit. If you earn R2 000, you must learn to save R200 every month. By the end of the year, you will have some money with which to do certain necessary things for yourself or your family,” she said.
Scott said, “About 11 million people in South Africa belong to stokvels. But it is important that you get into them with people you trust and that the rules are clear and people who manages the stokvel money is someone who knows about financial management. The other way to save is to put money into a bank, but avoid withdrawing it regularly because the banks charge for withdrawals. Enquire about types of accounts that have less interest. Another type of saving is investment. But again you need to approach the banks to get more advice on this option. Save for your pension because pension is not enough to live on. The way to a good life and a better future starts with saving.”
She said KZN Treasury is working with various private sector partners to teach people about financial management through the KwaZulu-Natal Financial Literacy Association.
“We want to take financial education to your homes, schools and everywhere possible,” concluded Scott.
Sbongile Mkhabela from KwaDabeka in Clermont said these financial literacy lessons are exactly what they need in Clermont.
“I now know that it is wrong to buy on credit when I can save money and use cash. I also know that it is not advisable to have multiple clothing accounts at the shops because we can still get what we need through better financial planning and we can save for what we need,” she said.
For more information contact:
Musa Cebisa
Cell: 071 687 8777
