DEVELOPMENT
Teaching
Children
to Save
A successful financial literacy campaign is investing in our future.
F
inancial literacy – the possession of knowledge and
understanding of financial matters – is a skill that can
be learned. This is the fundamental principle behind
the successful Teach Children to Save South Africa
(TCTS SATM) campaign, first piloted in 2008 and now
in its fifth annual national roll-out by The Banking Association
South Africa – which co-ordinates participation of banks – and the
broader financial sector. Knowing how to save is the cornerstone of
future financial success, and so primary school children in Grades
4–7 all over the country are being exposed to this campaign, which
takes its inspiration from the Zulu saying Ligotshwa lise manzi,
meaning ‘best shape a stick while it is still moist’.
The programme’s objective is to teach children to save. It aims to
foster a culture of saving among children, create awareness about
the value of money, and promote financial literacy, while assisting
learners to appreciate the power of choice; and also to promote
volunteerism in the financial sector. The programme is integrated
within the Economic Management Science (EMS) learning area of
the national school curriculum, through support of the Department
of Basic Education, and covers the basic concepts of saving:
• reasons to save;
• budgeting to save;
• understanding the difference between needs and wants; and
• where to save.
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SA BANKER
Edition 1
South Africa’s low savings rate and low levels of financial literacy
are well known. Poor savings levels impact not only the financial
stability of individual households, but also on the country’s
economic growth. The household savings rate has been declining
since 1980, and is about 16% of the GDP.
‘Without financial literacy the full and informed participation
of individuals in economic life is more challenging,’ explains Fikile
Kuhlase, Senior General Manager of The Banking Association South
Africa. ‘Developing a culture of saving among children is a critical
tool in instilling financial literacy in future generations – and as
recent events in the world economy have demonstrated, saving is
essential in surviving the fluctuations our economy is subjected to.’
The TCTS SATM is the first collaborative generic financial
literacy initiative of the South African banking industry.
For more information, visit www.tcts-sa.org.za, email
[email protected] or contact the TCTS SATM Programme
Co-ordinator on +27 11 645 6721/00.