The constant economic changes are making saving difficult for South African citizens. As the country is hit by the coronavirus (COVID-19), many will be left with little or no funds.
According to Trading Economics, household saving rates in South Africa decreased to -0.2% in the fourth quarter of 2019, from 0.1% in the third quarter of 2019.
Small business investor and the author of Passive Income and The Rise & Fall of The NSC, Penuel Mlotshwa, says the lack of financial literacy is the biggest reason why South Africans are not saving.
“The schooling system in its entirety hasn’t fully integrated a financial education model that all South Africans can understand, such that they can understand which role they can play in the economy of South Africa and how we can fit in the global economy as well.
“Once we know that, then we’ll know how to use our money, how to invest our money intelligently so that it can grow and benefit not just ourselves, but our communities and our country at large.”
Mlotshwa says South Africans need to be scared about the ripple effects of the COVID-19 pandemic on the economy.
In the video below, Penuel Mlotshwa talks more about saving during these trying times.
In the graphic below SABC News highlights the headlines that dominated in the second week of lockdown: