I’m sure most of you know that August is women’s month, with National Women’s Day on August 9, but did you know that last month was National Savings Month?
With that in mind, I thought I would focus on personal savings for women in particular, something that’s probably not on top of one’s mind, considering the rising inflation and interest rates.
Personal savings
Women have traditionally had a lot of influence in domestic affairs, but just how much say do we have when it comes to the purse strings?
Some spouses and partners still do not consider it appropriate for women to manage money. In this day and age it’s important to ensure you are comfortable handling money. One aspect of this is personal savings, the importance of which cannot be emphasised enough.
Benefits of saving
The truth is that everyone must save and, the younger one starts, the better. It’s not just about having money in the bank, it’s about planning, responsibility, maturity and independence.
Personal savings give you peace of mind because you know that emergency expenses will be taken care of. Furthermore, a healthy savings account allows you to be independent. But saving is also about wealth creation, which is important for the day you retire.
Making the right choice
Shop around – that’s the most sensible advice anyone should use when it comes to choosing a savings product. Set aside time to compare products.
Ask the right questions
You should be aware of the following before opening a savings account: the minimum balance required; the interest rate your money will earn; the monthly administration fee; and the statement fees.
Also inquire about the accessibility of your funds because some products require a notice period which means you will either be unable to access your savings or you will incur a heavy penalty fee for early withdrawal.
Less spending, more saving
A person who does not save cannot appreciate the value of money. A person who saves, however, has laid the groundwork for stability and security.
Women often assume various roles and responsibilities within the household, the most important of which is that of the nurturer. Therefore, teaching children to save and promoting a culture of saving should be one of our duties.
For further assistance, speak to an accredited financial adviser or authorised financial services provider. Do it for them and, above all, for yourself, but start today.
It’s never too late to start building your own nest egg.
Saving tips:
Switch to a more affordable bank account and pay lower bank fees. Browse through your bank statement to see what you are paying for your monthly banking.
Choose an account that offers services and benefits that you really want, otherwise you pay for extras that you do not need.
Draw up a budget and stick to it. A budget guides your spending in a responsible manner so you meet all your financial obligations.
Use your debit card to make cashless purchases. It costs less than an ATM withdrawal and it’s much safer than carrying cash.
Settle your debts first because the interest charged often exceeds that earned on savings. It will also alleviate some of the associated stress.
Yolande van Rensburg is head of corporate affairs and communication at Capitec Bank