FNB's Be Financially Smart feature is aimed at assisting consumers to become financially savvy with their money.
Eunice Sibiya, Head of FNB’s Consumer Education Programme says many people were not fortunate enough to be taught on how to handle money better.
Sibiya says there needs to be a bigger conversation to be had on how to build a healthy relationship with our money.
In the absence of education, most of us learned from our parents. The mistakes they made, we carried forward.— Eunice Sibiya, Head of FNB’s Consumer Education Programme
Sibiya believes that to have better control of our finances, we need to categorise our money use into four pillars. These are; transactions, saving and investing, borrowing and lastly insurance.
The South African Reserve Bank stats show that South Africa is one of the worst saving nations in the world says Sibiya.
China saves 42% of their income. Russia 28%, India 25% and South Africa only 19%. Stats also show that household debt is 75% in terms of income. Example, if i earn R10 000 a month, R7500 of that goes towards debt.— Eunice Sibiya, Head of FNB’s Consumer Education Programme
She goes on to say this is why most people are then pushed to supplementing with short-term loans.
Tune into the Azania Mosaka show every Monday afternoon at 2:30pm for tips on getting your finances in order.
For more tips on how to be financially smart, listen to clip below:
This article first appeared on 702 : How to make better financial decisions and become smarter with your randelas