Lesson Plan: Grade 7
Lesson Plan: Grade 7
Lesson Plan: Grade 7
E 7
P L A N
GRAD
My
Buildinngcial
Fina re
Futu
S A ™ )
I CA™ (TCTS
A F R
AV ESOUTH
O S
C H ILD REN T
TEAC H
ACTIVITY BOOKLET
FOR GRADE 7
Teach Children to Save South Africa™ (TCTS SA™) is a national savings programme which was piloted in July
2008. After the successful launch and national interest generated by this generic financial literacy initiative it was
adopted as an annual programme of the South African banking industry and broader financial sector, under the
auspices of Consumer Financial Education, as an enabler of access, inclusive development and transformation.
The aim of TCTS SA™ is to teach children to save, foster a culture of saving and to promote volunteerism. TCTS
SA™ highlights the important role that volunteer bankers/financial sector professionals can play in educating
our nation’s youth to become lifelong savers.
The booklet is a guide for a 67 minutes session at school, facilitated by a volunteer banker/financial sector
professional. The activities are designed to be flexible, so the facilitator can adapt them as needed to suit the
abilities and prior knowledge of learners.
Teachers are also encouraged to use the booklet and other relevant
TCTS SA™ materials as supplementary resources for learning and teaching.
Acknowledgements:
• National Department of Basic Education
• Gauteng Department of Education
• Johannesburg Stock Exchange (JSE)
• National Credit Regulator (NCR)
• Operation HOPE
• South African Banking Risk Information Centre (SABRIC)
2013
South Africa,
The Bankin g Association
Copyright ©
for
ted and copied
may be adap gement
This resource
es pr ov id ed that acknowled
at io na l pu rp os ut h Af ric a as
educ sociation So
e Banking As
is given to Th rsi on .
the original ve
producers of
x 61674,
h Africa, PO Bo
Ba nk in g As sociation Sout
The Lesson plan development
2107
Marshalltown sponsored by Visa
g.org.za
www.bankin o.za
ldrentosave.c
www.teachchi
1
Contents
The volunteer’s session and CAPS 3
2
The Volunteer’s Session
and CAPS
(Curriculum Assessment Policy Statement)
The activities provide opportunities for learners to develop knowledge, skills and values promoted in CAPS. They
are informed by the principles on which CAPS is based, including an active and critical approach to learning; and
human rights, inclusivity, environmental and social justice. In particular, the activities provide opportunities for
learners to develop their communication skills, identify and solve problems and make decisions using critical and
creative thinking. They are designed to encourage values that promote socially and environmentally sustainable
business practices.
The Grade 7 activities relate to specific topics and content in CAPS (see below). The activities also provide
opportunities for learners to revise prior learning and introduce learners to concepts covered later in the year,
depending on when the volunteers visit the schools.
Financial literacy
3
Entrepreneurship
The Economy
Feedback is welcome!
Any comments and suggestions from learners and teachers are encouraged. These will help us to improve
future TCTS SA™ resources. Feedback can be sent to:
In the classroom
• Introduce yourself clearly
• Do an icebreaker
• Relax!!!
Have Fun!
Goal toe
Sav
4
CAPS Topics
Activity 1
What do you know about money,
banks and business? About 5 minutes
2. Find out what learners already know about businesses, and if they have any plans for Entrepreneur’s Day
(in the second half of Term 3). Explain that a business makes money by selling things that people need, or want,
to buy. Ask learners to give examples of different types of businesses. Draw out the following points:
3. Explain that banks are businesses that trade in money. Ask questions, or give examples, to draw out
what learners already know about banks.
4. Briefly outline what you plan to cover during the rest of the session. Point out that during the session, you would
welcome learners asking you questions if they have any specific queries about saving, banking or starting a
business. If needed, make a note of these as they are raised and answer them during the appropriate activities.
5
CAPS Topics
Activity 2
Identify principles of saving
About 10 minutes
2. Ask learners:
• What does ‘saving’ mean? [not spending all the money you have but putting some away in a safe place to
use in the future or until you have enough to buy something you want but cannot afford now]
• Do you think it is important to save? Why/why not? [to make sure you have money to buy what you need;
to save for emergencies; so you can afford to buy something you really want, without having to borrow
money for it; to start a business]
3. Show learners the elements of a personal budget, and how a budget can be used as a tool to work out
how much to save (see example below). Ask learners to identify the type of things you need to include in
your budget.
• If you want to increase the amount you save every month, which expenses could you reduce? [the things
you want, and perhaps the money you set aside for unexpected things but did not need to use that month]
Amount (R)
n every week/month)
Income (money I ear
nts)
jobs, gifts, wages, gra
yment for doing odd
Sources of income (pa
Total income
ngs I buy)
Expenses (cost of thi
ort)
(food, clothes, transp
Things I need to buy
(treats, party clothes)
Things I want to buy
I get sick, a present
t I ma y nee d to pa y for (e.g. medicine if
tha
Unexpected things or a wedding)
ited to a birthday party
or transport if I get inv
Total expenses
s expens es)
Savings (income minu
6
4. Ask learners to identify some things that can help people to save.
Write the list of tips on the board, include:
Need
Want
7
CAPS Topics
Activity 3
Using a bank account
Aim: To introduce learners to the concept of banking, and precautions
to take when using an ATM (automatic teller machine)
1. Begin the activity with a general conversation with learners about banks. Some general terms and concepts
you may need to clarify are listed below.
Note: Depending on learners’ questions, you may also need to explain that on some accounts
(such as investment accounts), banks pay interest to the account holder, it is like a fee for the
banks using the money to lend to other clients. People pay interest if they buy something on
credit, or HP (hire purchase).
2. Explain that there are different types of bank accounts and that different banks offer different services.
Before choosing a particular bank, or type of account, you need to do some research to find out what suits
your needs. Visit different banks, read their leaflets and ask questions.
Before you open a bank account, make sure that you understand any risks and conditions, such as bank
charges and how much money you can withdraw at one time.
My
Buildinngcial
Fina re
Futu
8
• If you wanted to open a savings account, what steps would you follow? Clarify the process as needed,
pointing out that learners would have to go with their guardian and take the relevant documents (see below).
Banks need to keep such information about you, in terms of FICA (the Financial Intelligence
Centre Act 38 of 2001). If a bank suspects that any of its clients is involved in illegal
activities, such as money laundering or fraud, it has to give the clients’ details to the
Financial Intelligence Centre so they can investigate.
3. Tell learners a scenario, like the one below, to show the importance
of understanding bank charges (service fees).
f o r bank c harges
t to b u d g e t
an
It is import
ok
nth, he to
n t. D u ri n g the mo 4 0 . He
k accou out was R
u t R 5 0 in to his ban a m o u n t he took !
lo p tota l ad R 8
nth, Kabe enses. The he only h
Every mo e to p ay his exp f th e m onth. But
t tw ic the en d o
money ou 10 left at
xp e ct e d to have R to budge
t for
e
[h e h a d forgotten h d ra wal]
is was? each wit
y d o yo u think th rg e d h im R1 for al
• W h bank ch a withdraw
b a n k ch arges, his s? [o n ly make one e s n o t
k charge that do
to re d u ce his ban fi n d a n o ther bank
n Kabelo
do t, or
• What ca of accoun
o r ch a n g e the type
a month;
much]
charge so
Explain that every time you put money in or take money out of your account, it is called a transaction. A
bank charges fees for some transactions. Depending on the type of account, you may be allowed a certain
number of transactions free. It is important to find out which transactions your bank charges for.
9
Cellphone
4. Explain the different ways that you can put money in and take money out of a Banking
bank account:
• go inside the bank and make deposits and withdrawals, you need to fill out
correct forms (slips); show learners some real deposit and withdrawal slips
• use your cell phone
• use your bank debit card to pay for things at shops
• use an ATM (automatic teller machine).
5. Explain that the South African Banking Risk Information Centre (SABRIC)
provides information to help people avoid getting their money stolen through
bank fraud. They also advise people about using ATMs safely.
6. Ask if any learners have used an ATM. If they have, ask a volunteer to describe what they did.
If not, briefly explain the process. [You insert your card, and follow the instructions. You will be asked
to: a) key in your PIN (personal identification number); b) identify the transaction you need (amount to
withdraw or deposit). The machine will give you the money, or take your deposit envelope, and give you a
receipt]
7. Act out a scenario, like the one suggested below, to help learners identify some safety tips when using an
ATM.
Example scenari
o for using an A
Set up a pret
TM
end ATM on
keyboard draw a table (e.g.
n on it). Call use a cardbo
for a voluntee ard box with
an ATM. Give r to act out m a screen and
the learner a aking a transa
a PIN numbe ca rd board ATM ca ction at
r. rd to use, and
secretly show
them
Pretend to be
someone tryi
different way ng to get th
s of doing th e learner’s PI
their side and is. For exampl N number an
ask if you can e, look over d act out
help them. their shoulder
; stand by
The other lear
ners can try to
do to protect warn the bank
their PIN. ’s ‘customer’,
and tell them
what to
Time toe
Sav
10
CAPS Topics
Financial literacy
Income and expenses: Term 2 Weeks 4–6
Entrepreneurship
The entrepreneur: Term 3 Weeks 2–3
Starting a business: Term 3 Weeks 4–5
The economy
Inequality and poverty: Term 3 Weeks 8–10
Activity 4
Starting a business About 20 minutes
2. Use a story, like the one below, to take learners through the process of developing a budget for a business.
You can ask learners for their own ideas for the relevant costs to include.
Mpumi decided to start a small business. Last year she sold T-shirts, printed
with paintings drawn by South African artists, to tourists. She got to know
the places in her city that tourists liked to visit. Since then she has been doing
some research to find out the type of things that tourists like to buy, and the
best places to sell them. She found out that many tourists liked to buy things
that were made by local craftspeople. They liked things that were small, so
they were easy for them to carry on their journey home, and not too expensive.
Many tourists also particularly liked to buy things made of materials that would
otherwise have been thrown away.
Mpumi decided to start a business selling small toys made by local artists out
of used plastic bags and drink cans. She found out that:
•the artists will sell the toys to her for R10 each
•tourists will pay R15 for a toy.
11
Mpumi’s uncle decides to invest in the toy-selling business, and gives Mpumi
R100 to get started. Her uncle needs R120 back at the end of six weeks. [R100
plus R20 interest]
With R100 Mpumi buys 8 toys and covers her transport costs. She sells all the
toys in one week and makes a total of R120. She saves R20 and uses the rest to
buy another 8 toys.
Amount (R)
Income
Expenses
Cost of 8 toys 80
Cost of transport 20
Mpumi decides to save the R20 profit to pay back her uncle.
• How much money had Mpumi saved by the end of six weeks? R120 [R20 x 6]
By the end of six weeks Mpumi had saved enough money to pay back her uncle’s
loan with R20 interest.
• a budget is a tool to help manage your money, and achieve your goals
• the importance of saving to pay off a loan
• using some of the profits to invest in a business.
4. Point out that running a business, and making an investment, comes with some risk. Ask learners:
• Could Mpumi’s uncle be sure that he would get her R100 back? Why/why not?
• Encourage learners to identify the risks and talk about them. For example: Mpumi may not sell 8 toys each
week; the tourists may pay less than R15 for a toy; one week Mpumi may get sick and not be able to
work.
5. Encourage learners to think about what businesses can do to reduce the risk for investors.
For example, you could ask:
• If you were an investor, like Mpumi’s uncle, what type of things would you look for in a business
that would give you confidence that it was likely to succeed – and so reduce the risk of
a
you loosing your money? Startinigness
Bu s
12
Make a list of learners’ ideas, and make suggestions as needed, using the examples in Mpumi’s story.
Include:
• The need to think about the strengths, weaknesses, opportunities, threats for the business. For
example, finding out about:
o the needs and wants of consumers: Is there a need for the product? How much will people pay
for it?
o advertising and competition: How will you tell people it is available? What is special about your
product? Why should people buy it rather than a similar product made by someone else? Which
other businesses will you be competing with?
o reputation – this relates to the character of the people managing the business and the trust you
have in them. Do you think they are reliable, honest, hard working?
o systems and processes for keeping track of the money (budgets and financial records)
o providing information for investors: regular reports about how the business is going and how it
affects local people and the environment. Does it look after its employees and pay fair wages? Does
it recycle its waste materials? What does it do to reduce pollution?
Show learners how a table can be used as a tool to help identify, and record, the strengths, weaknesses,
opportunities and threats (SWOT) of a business. An example is given below, based on Mpumi’s
business. Make sure that you clearly explain the difference between ‘strengths and weaknesses’ (i.e.
characteristics of the people in the business, the product or available resources – factors that are more
within the entrepreneur’s control) and ‘opportunities and threats’ (i.e. factors relating to the wider
context in which the business operates, and which the entrepreneur needs to be aware of, and respond
to, if the business is to develop and survive in a changing world).
Point out that doing a SWOT analysis will help an entrepreneur identify what needs changing or
improving in the business. For example, some extra training may help to turn a weakness into a
strength; or adapting your product may change a threat from a competitor into an opportunity.
6. End
the activ
start-up ity by ask
money fo ing som
r a busin e questio
Some of ess, and ns to he
the profi ideas for lp learne
develop ts can b how the rs draw
in the fu e investe out som
staff. tu re . For exa d in the busi b u si ness can e key po
mple, so ness, so cover ex ints abo
the busi penses a ut gettin
me profi nd make g
ts may b ness can a profit.
If th e used to w o rk m
ere is tim buy new o re effecti
what cou e, encou equipme vely or
rage learn nt or to
ld they in e rs to think hire more
a SWOT clude in about th
table to a poster eir own
help the to encou ideas for
m think rage peo Entrepre
through ple to in neur’s D
their ide vest in th ay. For e
as? eir busin xample,
ess? Cou
ld they c
ompile
13
A SWOT analysis for Mpumi’s business
(example only, learners may suggest other factors)
Strengths
• Toys are made out of reused materials, so
helps to keep costs low
• Toys made by local craftspeople
• Toys are small and not expensive, so easier to
Weaknesses
make and costs are kept low • It is a new business, it may take time for
• Tourists like to buy such toys – so there is a the artists to learn to make the type of
market for them toys that most attract tourists – at the
• Research has been done and the places where beginning some types of toys may not sell
tourists visit and the type of things they like to • Only have enough money to produce a
buy have been identified small number of toys
• Already have one investor – so can make a
small number of toys
• The artists are talented, hardworking and
creative – always ready to try out new designs
and ideas for different toys
• Mpumi, and her team of artists, have a good
reputation in the local community for being
honest and hardworking
Opportunities
Threats
• The toys can be sold, or advertised, in different
places that tourists visit, so more customers • Competition from businesses selling other
can be reached types of products to tourists (e.g. T-shirts)
• Making toys out of materials that other • Competition from similar businesses
people throw away helps to reduce waste. making toys out of recycled materials
Organisations that are concerned about • The number of tourists visiting the area
reducing waste (e.g. the local council, shops or may go down due to factors beyond
recycling companies) may like to support the Mpumi’s control, such as price of air fares,
project, for example by advertising the toys or weather changes, global events, etc.
putting out special bins in which people put
their empty cans and plastic bags (the artists
would then save time spent collecting their
materials so they could spend longer on
designing and making their
products)
• South African tourists
may like to buy the
toys as well as tourists
from other countries
a
Startinigness
Bu s
14
Additional information for teacher
A business plan is a document about a new business that can be given to
a bank or potential investor to help them decide if they would like to support it.
Name of bu
siness
Logo and sl
ogan (or by-
The busines line)
s motto (or
Contents p sh ort vision st
age (a list o atement)
Introduct f the differe
ion nt sections
(brief summ in the plan
ary of your )
Descriptio b usiness idea
n of the p )
Analysis o roduct or
f the stren service
threats gths, wea
knesses, o
Location o pportunit
f the busi ies,
Type of o n e ss
wnership
(include the
reason for ch
and disadva oosing that
ntages) type of own
Competiti ership, its ad
on vantages
(how do yo
ur product
other comp s or services
anies?) compare w
Marketing ith those p
plan rovided by
(describe yo
ur target
advertising market (m
) ain custom
Financial ers), the se
plan and lling price,
(What will p roposed b
be your star udget
make your t-up costs
product or or capital?
labour cost p rovide your How much
s)? What is service (incl will it cost
the breakev ude raw m to
you need to en aterials and
sell to cove p oint (how
Human re r your cost many prod
sources s?) ucts will
(How man
y people w
types of jo ill work in
bs/position the busines
how the dif s, and an s? Include
ferent types organogram the differe
(a diagram nt
to, etc.) of staff rela that shows
te to each
Conclusio o th er, who they re
n port
A brief sum
mary of the
it will succee goals of th
d (i.e. will st e business
now) ill be operat and why yo
ing in three u think
years from
15
Programme Integration
of Teach Children to
Save South Africa™
(TCTS SA™)
Why Programme Integration?
Critical for the sustainability of the Teach Children to Save South Africa™ (TCTS SA™) programme is integration
with other financial literacy and employee volunteerism programmes. This integration ensures that financial
literacy is promoted throughout the year and not only during the heightened awareness period in July, which
is Savings Month in South Africa.
The cornerstone of programme integration is to leverage off synergies, achieve greater outreach, and deepen
financial markets. Financial literacy is the core platform for financial inclusion and is a business imperative to
facilitate meaningful inclusive socio-economic growth of South Africa. The Banking Association South Africa
has partnered with various organisations to extend outreach and developmental impact.
Key target groups for the various interventions that have piggy-backed on TCTS SA™ are youth, vulnerable
groupings, the unbanked, the under-banked and the newly banked. Cutting across the various themes of these
interventions is to demystify banking, democratise finance and improve financial capability through inclusive
finance. The various TCTS SA™ participating banks and financial sector institutions are continuously involved in
various programme integration initiatives.
Ecosystem
National Agenda
The Banking
Association South Africa
is the Custodian and
Champion of TCTS SA™
Enablers/Enabling Participants
Environment
Collaborators
(Wealth Cycle)
s
Busines
Plan
16
Activity 5
Safe and Secure Savings
SABRIC / South African Banking Risk Information Centre was established to assist the banking industry to
combat organized crime. SABRIC makes South African banking safe, secure and fraud free.
• Key stakeholders of SABRIC are the banks and major Cash-in-Transit (CiT) companies.
• The principle business of SABRIC is to detect, prevent and reduce organized crime in the banking
industry through effective public-private partnerships.
• The company also provides crime risk information and consequence management services to the
banking industry and CiT companies.
• SABRIC’s key responsibility is the co-ordination of activities to address organized bank related crime, i.e.,
commercial and violent crime.
• The company interfaces with a range of external organizations and public and private partners, most
notably to progress crime risk reduction.
1. Find out what learners already understand about an ATM. For example,
ask learner:
2. Explain to learners that an ATM works just the same as a bank teller inside the bank, only that with an
ATM you are interacting with an electronic teller. Explain that the ATM transaction works in the following
manner:
3. Find out from the learners why they think it is important to use safe banking practices when using an ATM
(So that you do not lose your savings as a result of crime and your savings can grow)
Scenario 1
:
Gogo Kh
umalo g
wants to oes to th
withdraw e ATM b
security money, b ecause it
guarding ut becau is pensio
the ATM se Gogo n day. G
to help h cannot se ogo Khu
e r. e properly, malo
1. Do yo she asks
u think the
with the t h is is a sa
ir flashca fe bank
rds wheth ing pra
er it is ‘S ct
Where th AFE’ or ‘N ice? (Ask the lea
ere are d OT SAFE rners to
issenting ’). (NOT show
provide views, ask SAFE)
reinforce
ment by the learn
repeatin ers to ex
g the co
rrect answ plain ‘why?’ The
er. reafter,
Scenario 2
:
Baba Zu
ngu goe
his bank s to the
card. Ba ATM. His
keying in ba Zung cell phon
his ATM u answe e rings im
PIN. rs his ph mediate
one, wh ly after h
ile at th e inserts
2. Do yo e same
u think time he
with the this is a is
ir flashca safe ba
rds wheth nking p
er it is ‘S ract
AFE’ or ‘N ice? (Ask the lea
OT SAFE rners to
’). (NOT show
SAFE)
Facilitator: Conclude by summarizing the key theme of the lesson and ask the learners to repeat after you:
We practice safe banking so that our savings can be SAFE and GROW!
Safe &ure
Sec ings
Sav
18
esburg Stock E xchange (JSE)?
at is the Johann
ted
re shares of lis
Wh that prov id es a m ar ket place whe
ices. It is th e en gi ne
So ut h Af ric an institution cl as s sy st ems and serv ex pa nd th eir
a proudl y vative, wor ld capital to
JSE Limited is ea ns of in no ni es re qu iri ng nt ly
n be traded
by m for compa ts. JSE efficie
companies ca ec on om y and a platform to gr ow th eir investmen la tio ns
South African rtunities ugh regu
room of the arch of oppo investors thro
d to m ee t investors in se ar ke t to us er s, protecting on w hich previous
ly
businesses an ise d in the m id es a platfo rm d
ca pi ta l ra E al so pr ov r sh ar es an
and securely
passes on lis te d co mpanies. JS w ish es to sell his/he
k broking firm
s an d ted compa ny the econ y, om
governing stoc a sh ar eh older of a lis ch an ne ls funds into ge
are traded i.e
. if
es. JSE not on ly s. The exchan
issued shares pu rc ha se these shar ts in th e fo rm of dividend re so ur ce s
r person to on investmen ling cash
wants anothe ve st or s with returns im ar y ca pi ta l—by rechanne rt un iti es an d
ovides in ng of pr g job oppo
but it also pr tion—the raisi hile enhancin
sf ul ly fu lfi lls its main func bu ild in g th e economy w
succes tivity, thus
e economic ac
into productiv est stock
wealth creatio
n. in top 20 larg
ge in Af ric a and ranks
ock exchan
the largest st
yo u kn ow ? The JSE is
Did
orldwide.
exchanges w
• Exchange Traded Fund is an index that is listed and traded on the stock market.
• A dividend is the sum of money paid by a company to its shareholders out of its profits (Is the distribution
from the net profits of a company to its shareholders). The dividends are taxed at 15% since 1 April 2012.
• Volatility is the movement of the share price in the stock market. High volatility is associated with risk,
both fundamental and technical.
• Market capitalisation is the total value of the company. It is the total number of shares multiplied by
the price of a share.
• Bid price is the highest price that any buyer is willing to pay for a share/security at any given time.
• Offer/asking price is the lowest price at which the seller is willing to accept for a share. The opposite
would be a bid.
19
Mandela Day
Volunteerism
Volunteerism is a key goal of the programme in fact volunteerism is the lifeblood of the programme. Our
volunteers use their professional and personal experience to impart savings lessons to learners. Volunteerism is
the principle of donating time and energy for the benefit of others in the community as a social responsibility.
Volunteerism benefits both society at large and the individual volunteer by strengthening trust, solidarity and
reciprocity among citizens.
We support programmes that encourage volunteerism like Mandela Day and as part of our ‘Programme
Integration’, we hope volunteers who participate in Mandela Day can use our programme as their flagship
volunteerism programme.
Concept
Nelson Mandela International Day (or Mandela Day) is an annual international day in honour of the iconic Nelson
Mandela; it is celebrated annually on 18 July (Mandela’s birthday).
The day was officially declared by the United Nations General Assembly in November 2009, with the first UN
Mandela Day held on 18 July 2010. However, others celebrated Mandela Day from 18 July 2009.
Mandela Day is not meant as a public holiday, but as a day to honour the values and the legacy of Nelson
Mandela through volunteering and community service. Mandela is South Africa’s former and first black
President after the apartheid era. He is fondly referred to as ‘Tata Madiba’. Mandela Day is a global call to
action that celebrates the noble idea that each individual has the power to transform the world and the ability
to make an impact. The Mandela Day aims to inspire individuals to take action to help and change the world for
the better and build a global movement for good.
67 minutes of giving
The Mandela Day campaign message is: “Nelson Mandela has fought for social justice for 67 years. We are
asking you to start with 67 minutes.” This global call for action to all citizens is made to commit 67 minutes to
community volunteerism to progress humanity. The 67 minutes Teach Children to Save South Africa™ (TCTSA ™)
lesson being delivered by the volunteer bankers and financial sector professionals is a reflection and alignment
to the Mandela Day messaging which is anchored on bringing together people around the world to fight
poverty, promote peace and reconciliation.
Volunteerism imbibes the spirit of generosity, so we urge everyone to ultimately ”Make Every Day a Mandela
Day”
“Education is the most powerful weapon which you can use to change the world.”
- Nelson Mandela
Safe &ure
Sec ings
Sav
20
Financial Dignity
Financial Dignity is the controlled use of all the money that
you accrue to achieve a lifestyle that is of maximum value to
you. The typical signs of having attained Financial Dignity are
said to be; having manageable mortgage debt, no consumer
debt, being able to invest at least 10% of all your income so
you have the means to support a fulfilling lifestyle for the
rest of your life and spending the rest of your money on a
lifestyle that is of value to you.
Wealth Cycle
The Wealth Cycle is a concept inspired by saving some
of our earned money as the safest way to enjoy a
financially healthy and balanced lifestyle because
with saved earnings, one is able to spend,
SAVE
donate, invest and live a financially relaxed and
dignified life as depicted.
EARN SPEND
INVEST DONATE
21
10 Savings Tips:
1. LIVE ECONOMICALLY: Do not buy things you do not need and do not try to keep up with
friends and neighbours. Everybody’s needs are different so live according to yours.
2. SAVING IS A MINDSET: Save money, water, electricity, etc. Do not waste anything of value.
Make delayed gratification a norm.
3. START SAVING FROM AN EARLY AGE: Learn about budgeting. Earn your pocket money.
Learn that making a financial decision is about weighing up the value of one thing against
another and choosing which to forego in favour of the other. Differentiating between a
NEED and a WANT is the 1st step to a savings mentality and financial freedom.
4. LOOK AFTER THE THINGS YOU HAVE. Take pride in what you have worked hard for.
Respect your own efforts and feel good about what you have achieved. Lose the entitlement
attitude!
5. DO NOT MAKE EXCUSES ABOUT WHY YOU DO NOT SAVE. Saying I am too young or I
will save next month or only rich people can save will not get you anywhere. Start by saving
the little you can afford to save. “Make sense of cents”
6. START SAVING CONSISTENTLY AND SERIOUSLY FOR YOUR FUTURE YEARS. Learn the
magic of compound interest. Put aside at least 10% of the money you get monthly.
7. AVOID OWING PEOPLE. It is cheaper and more rewarding to wait until you have saved the
funds yourself. It is better to spend money you have earned than to spend money you still
have to make.
9. SHOP AROUND BEFORE YOU BUY. Compare prices and benefits. Do the same with bank
products – compare the offerings. Do not ever be afraid to ask questions – knowledge is
power.
10. LEARN TO RESIST TEMPTING MEDIA MESSAGES especially about sales. Reward yourself
for good money management behaviour!
Conclusion:
Saving
And
Volunteerism
Empowers Savings
Tips
22
Contact details:
TCTS SA™ Programme Coordinator
E-mail: tcts@banking.org.za
Fax: 011-645 6821/00
www.teachchildrentosave.co.za
www.banking.org.za