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SA Youth Find Saving Difficult, but Doable

By: Deneesha Pillay

Young working adults are finding it difficult to save as prices soar for daily necessities such as electricity‚ data‚ groceries and petrol, but some are managing to stretch their budgets that far.
The importance of saving for rainy days. The importance of saving for rainy days.

“If I do not have the cash to buy it‚ then I am not ready to have it yet, ” said Lauren Adams‚ a 27-year-old civil engineering technologist from the Eastern Cape.

She keeps a record of her fixed monthly expenses. “Once I get paid, I subtract those expenses from my net income. From that balance I put aside separate amounts for petrol for the month‚ food‚ clothing‚ toiletries and entertainment allowances.

“I then further break those amounts down to restricting amounts I am allowed to spend per week on the aforementioned categories. The rest goes into a savings account,” she said.

Kelly Solomon‚ a 24-year-old teaching assistant from Cape Town who works for Rhodes University‚ says she has two savings accounts which contribute to her long-term saving plan.

She is able to access one of the accounts immediately, but must give a month’s notice to access the funds in the other. “The longer-term one is money I put away to ensure that, should I be unemployed‚ I will have enough money to take me through a few months.”

“By having a notice account‚ you literally don’t even feel like that money exists. Which is good because then you’re not tempted to access it‚” she said.

Andile Swana‚ 27‚ said he and his wife Annelisa‚ 25‚ have a fixed amount they save monthly “non-negotiable”, and that drawing up a budget every month helps them save

“It is good to have a budget. It helps you not to spend money that you do not have” he said.

Young adults should set quarterly, semi-annual, and annual savings targets and make sure they are met, said Lauren Bhana‚ a 24-year-old business intelligence analyst for digital channels from Johannesburg.

They should also tighten up budgets where needs be.

“Have a stop order set up to have a set amount go into your savings account automatically on a specified date each month and compare prices to find best deals prior to shopping‚” Bhana said.

The items with the greatest potential to derail budgets are car premiums‚ insurance‚ maintenance and service plans for Adams; car instalments and petrol for Zeenat de Maine‚ 25; electricity for Swana; rent for Bhana; food‚ electricity and toilet paper for Solomon; and rent and avocados for Justin van Wyk‚ 29.

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