Provincial Treasury Head of Department, Mr Simiso Magagula, urged government employees to exercise caution when they spend their money over the festive season.
Magagula asked public servants to moderate their spending over the Christmas holidays, saying January is only days away from the holidays. He said people, in general, have a tendency to splash all their hard-earned bonuses over the holidays, only to be confronted by debt in January when they start a new year.
He was addressing scores of government employees who descended on Chief Albert Luthuli Central Hospital today for the Office of the Premier's Financial Education Summit.
Magagula said government wanted its employees to clamp down on runaway spending habits and inculcate a culture of saving with their personal income. He highlighted bad financial decisions that people make in general.
"We want you to live on budget. Make budgeting a family affair. Know that your income equals expenditure. Moderate your spending. If you can't postpone your desires, you have a problem because you will slide into debt," said Magagula.
He advised government employees to save their money in reputable financial institutions like banks and avoid pyramid schemes.
"Many government employees who have financial challenges have resorted into resigning to cash their pension money. This is not a good decision. That is why we emphasise that people must save for the rainy days," said the head of department.
Mr Mzwandile Gumede from the Premier's Office said Government will continue organising these Financial Education Summit to ensure that government employees are financially educated. He asked employees to make use of their respective Employees Wellness Units within their departments.
Speaking at the same summit, National Credit Regulator's Zonke Majola said there are a lot of people, including government employees, who were in debt because they did not handle their finances well.
Majola said people who are in debt should contact NCR for free to get help. She asked the workers to know their rights as consumers to avoid sinking into debts just because they did not know what to do.
For more information, contact:
Sibonelo Msomi
Cell: 072 587 1947
E-mail: sibonelo.msomi@kzntreasury.gov.za
