Spend wisely, New Year ahead
South Africans spend more than they earn throughout the year, and this is compounded over the Festive Season.
In a credit-hungry South Africa where household debt is at 75 per cent of disposable income while the household savings level remains at a mere 1.7 per cent, the South African Savings Institute (SASI) faces the momentous task of reminding consumers about the need to spend wisely and set aside a portion of their end of year earnings, in order to meet both new year requirements and future household financial demands.
This comes from the Chairperson of the institute Prem Govender who says that this forms part of the SASI mission to develop a robust culture of saving in South Africa.
“South Africans spend more than they earn throughout the year, and this is compounded over the Festive Season when we are inundated by marketing and tempted by material goods we desire rather than need.
“People in all income brackets give in to debt just to make merry during the festive season
“We must remember that while the Festive Season creates celebration pressure, this is soon followed by household financial obligations in the New Year which people cannot avoid or delay, such as equipping children for school, getting to work, medical expenses as well as food costs,” Says Govender.
She adds that owing to this, SASI provides financial education and relevant financial information to consumers through various campaigns throughout the year.
This year’s Festive Season campaign was launched on 6 November 2013 under the theme, ‘Spend Wisely, New Year Ahead’, and aims to refocus consumers on wise spending and to guide them on how to avoid unnecessary expenditure.
According to Govender, consumers must rethink the concept of sale and think sale by distinguishing between needs and wants.
“I urge that people have a clear budget for requirements and consider making Christmas gifts and take holidays they can afford.
“I also advise that people keep track of their expenditure and know where every cent of their income goes.
“Also try visualising what you want to save for and start saving more. Save your bonus and make it multiply,” says Govender.
For saving tips, visit www.savingsinstitute.co.za
