31 July 2021
SAVINGS MONTH FEATURE
Saving in YOUR language with #waystosave this July Savings Month
T
he South African Savings Institute (SASI), with support from Absa and the IDC, is again focusing on financial education throughout July Savings Month, bringing together financial experts to provide tangible insights on savings through the #waystosave financial literacy education initiative. SASI CEO Gerald Mwandiambira says that in 2021, the focus is on driving awareness around how savings knowledge must be understood, and be accessible in more South African languages. The core #waystosave theme for 2021 is ‘Saving in YOUR language’. The July Savings Month public launch took place on 30 June and was attended by media, government and financial industry leaders. “SASI remains steadfast in our mission to really transform savings behaviour in South Africa. July Savings Month 2021 features a host of leading voices in financial education. It includes a vibrant panel discussion, sparking a national conversation on how savings knowledge and financial literacy can be made more accessible to all,” says Mwandiambira. “To quote Nelson Mandela: ‘If you talk to a man in a language he understands, that goes to his head. If you talk to him in his own language, that goes to his heart.’ Everyone can find ways to save in their own language.”
“Improvements in the level of household net wealth are encouraging and it shows we can save when under pressure” The July Savings Month includes a series of indepth webinars and a Savings Challenge, providing an opportunity for many to focus on their financial health. SASI has partnered with leading voices in financial literacy, offering savings insights and tools in various languages. “As we continue to battle the impact of the pandemic, it is even more critical for people to be money smart. But at
times, savings and financial terms can seem like a foreign language,” says Mwandiambira. “#waystosave webinar speakers address key issues targeted at specific audiences this year, including saving for students and young adults, bouncing back from retrenchment, and saving through stokvels. There is something for everyone.” Material is being released in Zulu, Sotho, Tswana, isiXhosa, Venda and Afrikaans. Those who participate in webinars and complete online Savings Challenges on the #waystosave website (www.waystosave.co.za) could win R10 000 in a tax-free savings account. “We are proud of what has been achieved during our four-year partnership with SASI,” says Thami Cele, Head of Saving and Investments at Everyday Banking, Absa Retail and Business Banking. “We have supported vital financial literacy awareness and initiatives that help people to make good saving and investment decisions. Through #waystosave, many people will continue to be able to access the expertise and help they need, and now in several languages.” 2021 also marks the twentieth anniversary of SASI. The organisation continues to promote a savings culture and believes that through its efforts and campaigns, more South Africans know about the importance of saving. “The fact that July Savings Month, a SASI initiative, is now observed nationally is testament to the efforts of all the individuals who over the years have contributed to SASI’s success. We thank our long-standing Chairperson Prem Govender and the SASI Board for seeing SASI’s continued relevance in a digital age,” says Mwandiambira. The Reserve Bank’s Financial Stability Review published on May 27 shows an overall increased rate of savings for households in recent quarters. As a ratio of household income, savings reached a decade high in the third quarter of 2020 (1.4%) before moderating to 0.5% in the fourth quarter. At the end of 2021, online platform Trading Economics projects South Africa’s Household Saving Ratio will stand at 0.6%. The SARB report further shows that low interest rates have significantly improved the debt-service capacity of households. Household debt-to-disposable
Gerald Mwandiambira, CEO, SASI
“Savings knowledge must be understood and accessible in more South African languages” income increased in 2020, reaching 75.3% in the fourth quarter of 2020. Despite this, the cost of servicing debt for households fell to 7.7% of income at the end of 2020, down from 9.5% at the end of the previous year and the lowest level in more than 14 years. “Improvements in the level of household net wealth are encouraging and it shows we can save when under pressure,” says SASI Chairperson Prem Govender. “However, South Africa still has one of the lowest Household Savings Ratios in the world. At SASI, we believe a strong focus on financial inclusion by developing financial literacy across the population is key to improving this ratio. In our increasingly tough economic environment, we need to find ways to save and avoid the credit trap. As the economy gradually recovers, interest rates may rise over the short to medium term, which will make paying off debts more difficult. We need to avoid financial blind spots and drive a savings culture to break the cycle of inter-generational debt.” Follow @waystosave on social media for more, and visit www.waystosave.co.za
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