Financial Literacy Programme to Students in Tertiary Institutions

Background

Financial literacy is the combination of consumers/investors understanding of financial facts and concept, and their ability to appreciate financial risks and opportunities to make informed choices, to know where to go for help and to take other effective actions to improve their financial well-being” (OECD)

Many graduates go into the labour market with little understanding of how to manage their finances. As a result, they squander their incomes as soon as they receive their first earnings on ostentatious goods and fall into debt due to failure to save or budget for their expenses. Many of them fail to save or budget for their money even though they intuitively know that this could improve their financial well-being. As a result, most of them are unprepared and are ill-equipped to properly manage their salaries or realize the importance of making additional provision for their retirement during their working years.

Against this background, the South African Savings Institute (SASI) has embarked on a varsity savings campaign to achieve the following objectives:

  • Raise the level of awareness among students, about the benefits of savings and of short, medium and long term financial planning.
  • Provide information on the basic savings skills including- Reasons to Save; Budgeting to Save; Money Management; and basic Financial Planning.
  • Varsity Savings CampaignEquip students with skills that will help them make the most of their earnings, whether small or large amounts of earnings/income.
  • Ultimately, to assist students adopt an enterprising mind and plan for their futures even before they receive their first earnings, hence reduce the pressure on their guardians and the state.
Modus Operandil
  • SASI works with the relevant official on the Varsity Student Representative Council (SRC). The SRC then coordinates the students and advises on the appropriate times for the campus visits.
  • The programme takes the form of exhibition where stands are erected at the campus between agreed upon times.
  • Varsity Savings CampaignStudents then visit the stands for a one-on-one with the facilitators to address key issues relating to financial literacy. Students have an opportunity to ask practical questions relating to their individual financial situations and challenges.
  • Alongside the exhibition, SASI officials offer a 45-minute presentation to the student to cover the basics of saving including Reasons to Save; Budgeting to Save and overall money management in the context of a student.
  • At the end of the visit, the students’ coordinators provide feedback from the students to the Institute relating to the concepts covered during the visit.
  • Subsequent messages are then circulated in campus newsletters, campus based radio stations, community media accessed by students, etc.
  • A portal/discussion page (underdevelopment) on the SASI website allows for Q&A dialogues between the Institute and the students. The student coordinators relay the feedback to the SASI representative, thus allowing for extra information and/or clarification on issues that the dialogues might not have covered sufficiently.
Tips & Tricks to stretch your pocket

Click here to view a flyer: Steps to save and realise your dreams (PDF doc – 463KB)