National Savings Month: A Springboard for Overcoming Debt

One of the best ways to combat debt is to pre-empt it through saving. However, saving money takes discipline over a long period of time, something that is far easier said than done.

This is why the South African government supports the annual National Savings Month as a way of helping citizens find a way to develop the healthy financial habit of saving.

What is National Savings Month?

National Savings Month, which falls in July every year, was instituted in 2001 by the South African Savings Institute (SASI). SASI is a non-profit organisation dedicated to uplifting the economy by encouraging better financial management through a plethora of education and awareness campaigns.

This initiative has since been coopted by numerous financial institutions around the country as well as the National Treasury, all of which contribute to the annual campaign by raising awareness, providing workshops, and offering special financial instruments to make saving easier.

What Does National Savings Month Encourage?

The central drive of National Savings Month is to promote the importance of saving by encouraging individuals to set achievable savings goals, however small. The idea is that even small savings can grow into something substantial if diligence and consistency are applied over time.

The more one can save, the less one needs to rely on credit for big-ticket items or in emergencies. Avoiding unnecessary credit can help individuals minimise debt burdens, providing long-term financial stability and all the benefits that come with it.

During this month, you can find plenty of resources and special offers both online and at a wide variety of financial institutions aimed at building a culture of saving throughout South African society.

Take Advantage of the Opportunity

National Savings Month is a great time to find encouragement from the financial establishment in the form of information and special products designed to facilitate better financial habits.

Take, for example, the RSA Retail Savings Bond offered by National Treasury. Designed to be easy to use and highly accessible to even the most financially uninformed, the bond allows individuals to invest small amounts, as little as R100 at a time, into government-backed bonds that offer a secure and low-risk investment opportunity. 

To further encourage savings, investors in the RSA Retail Savings Bond cannot withdraw their money without paying a penalty fee before 12 months have passed.

Embrace National Savings Month by getting ahead of your debt. Contact Zero Debt now for expert financial counselling and look forward to a debt-free future.

FAQs

1. What is National Savings Month?
   • National Savings Month is an annual initiative in South Africa held every July. It was launched by the South African Savings Institute (SASI) to encourage South Africans to improve financial habits, specifically by promoting the benefits of saving over taking on debt.
2. How does saving help in managing debt?
   • Saving reduces reliance on credit, especially for emergencies or big purchases. By building savings, individuals can avoid unnecessary debt, helping to minimise long-term debt burdens and achieve financial stability.
3. What types of accounts are beneficial for saving?
   • Accounts such as RSA Retail Savings Bonds are ideal for beginners, offering secure, low-risk investment options. Financial institutions often provide similar savings products during National Savings Month to make saving more accessible.
4. Can National Savings Month help people in debt?
   • Yes, National Savings Month encourages South Africans to save, which is a crucial step in debt prevention and management. Saving helps people reduce their dependence on credit, preventing debt accumulation.
5. What is debt consolidation, and how does it help with debt management?
   • Debt consolidation combines multiple debts into one manageable payment. This can help simplify debt management, reduce interest rates, and free up funds for savings, making it an ideal solution for newlyweds or anyone aiming for financial stability.
6. How can debt counselling benefit people struggling with debt?
   • Debt counselling assists over-indebted individuals by restructuring payments and negotiating with creditors, often reducing monthly payments. It’s an effective service to help people regain control over their finances.
7. What is the RSA Retail Savings Bond, and how does it work?
   • The RSA Retail Savings Bond is a government-backed savings bond, allowing individuals to invest with as little as R100. It’s designed for financial security and low risk, making it a popular option during National Savings Month.
8. How can I start managing my debt and saving more effectively?
   • Begin by setting a realistic budget and prioritising high-interest debt. Consider services like debt counselling or debt consolidation to streamline repayments and free up money for savings. Contact Zero Debt for a free financial assessment.