July is Savings Month. This is a national campaign by the South African Savings Institute.
The idea is to raise awareness about the benefits of planning. It is also to get people talking and thinking about saving as well as getting started on their savings journey.
The reality is that not many South Africans save as we have one of the lowest savings rates globally.
Many adults report to struggle to save due to low income levels and/or the high cost of living. In truth, very few people have all the money they need but choose to prioritize their savings/investments because they understand the importance of doing so. Here are a few of them:
- saving consistently over time allows you to build up money for emergencies (life happens and there will come a time when you need money urgently. getting into debt should be your last resort)
- having savings buys you options – the option to leave a job that no longer serves you, the option to travel, the option to start a business (this list is endless!)
- saving consistently while you earn an income allows you to retire successfully when you are ready to do so (only 6% of the South African population at retirement is financially secure)
Saving consistently is difficult because there are always more exciting things to spend your money on. But when you are educated about the benefits of saving, it will make the habit a lot easier to develop. The sooner you learn to save, the better it will be for you in the long term.
One of the best ways to teach children about saving is by giving them a money tin – children under the age of 7 need a visual representation of the act of saving and money tins are ideal.
Happy Savings Month!