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Ramgareeb shares the power of pennies on saving month

Centennial Schools Joseina Ramgareeb shares insights on real-world financial literacy tips that empower high-school learners to start saving sooner rather than later.

South Africa has a low savings rate (16.3%), which affects economic growth. To address this, Centennial Schools’ deputy principal Joseina Ramgareeb emphasises teaching financial education and savings habits in schools.

This includes entrepreneurship, credit history, and budgeting skills.

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To mark July as the National Savings Month, Ramgareeb said it is important to teach learners about finances so that they are prepared to contribute towards the economy.

“We should aim to release work-ready matriculants into the economy by teaching them entrepreneurship, cryptocurrencies and blockchain, coding, and other real-world skills incorporating financial education into our curriculum. This is crucial for preparing students for the challenges of adulthood and the responsibilities of contributing to the economy.”

Ramgareeb admits that starting an entrepreneurial venture is a lifeline for many young South Africans in the context of the prevailing unemployment – but it requires capital.

She said poor saving behaviour can have a significant impact on people’s ability to start their own businesses. She believes that teaching children to start saving from an early age could fast-track their entrepreneurship journey later in life.

Also read: Centennial Schools welcomes new deputy principal

A good credit history is another must-have for potential entrepreneurs.

“To succeed as a self-starter, you will need a solid credit history, but having a credit card – which can be risky if you are a ‘splurger’ rather than a saver – is not the only way to build a credit history. You can build a credit score by having a cellphone contract, store card, or student loan in your name – and ensuring that you make these payments in full and on time, every month.”

Ramgareeb offers tips for teens and young adults to start saving.

“Start somewhere, use a budgeting app to allocate your income, track your spending, and figure out how much you can save every month, even if you start small. Find a ‘money buddy’ – partner with a friend to keep each other accountable for financial goals, share progress, and motivate each other.

“Open a savings account: Start saving a portion of any income you receive to build a financial cushion for the future. Set up automatic transfers to your savings account to build a consistent saving habit.

“Distinguish wants from needs, understand the difference between essential needs and non-essential wants, to make better spending decisions. Shop around, compare prices at different merchants, and avoid impulse buying by planning your purchases.”

Related article: Tips to save money on school lunches

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