Ithala takes the lead in promoting savings
A group of about 500 learners recently benefited from a campaign organised by Ithala aimed at promoting a culture of saving.
The Teach a Child to Save initiative, part of the National Savings Month campaign, targeted Grade 4-7 learners from Igwadu Zennex Primary school in rural Embo with the message of saving money from an early age.
The month of July has been set aside as National Savings Month and the focus for 2011 is on teaching the youth to save.
Acting Ithala Limited Chief Executive, Themba Mathe said South Africans had a poor savings record.
He said the aim was to introduce children to saving at an early age to help them become better savers in future.
“Individual South Africans are not saving enough and this trend appears to be getting worse each year,” said Mathe.
According to the South African Savings Institute (Sasi), South Africans spend too much and save too little.In 2009, South Africa’s gross saving rate equated to 16 percent of the GDP, which was vastly lower than that of other developing countries.
Mathe said people normally fell prey to debt through the excessive use of credit and in-store cards whilst ignoring more important considerations, such as investing towards their children’s education.
“Whilst these cards are a fast and convenient way to get that new fridge or Plasma TV, the reality is that they also attract very high interest...with a little discipline and patience, you could save up and buy the same item without attracting any additional costs,” he said.
Teachers and community members who attended the campaign held on the school’s premises agreed that they too had learnt something about better financial management.
Ithala also extended its Teach a Child to Save Campaign to other primary schools in KwaZulu-Natal.
Ithala, which was among the first financial institutions to target unbanked communities in KZN, has an innovate assortment of banking products aimed at promoting savings in the community.