1. What is saving?
Savings refers to funds that are set aside from income earned and are intended for
future use. This could be saving money for an emergency or an unforeseen expense, or for
buying something.
2. Why save?
Saving money is one of the essential aspects of building wealth and having a secure financial
future. Saving money gives you a way out of the uncertainties of life and provides you with an
opportunity to enjoy a quality life. Putting aside a sum of money in a systematic manner can
help you steer out of many hurdles and obstacles in life. It can support you in your hour of n
Due to the high cost of living, South Africans are forced to spend a large percentage of their
income on necessities and everyday living costs, leaving next to nothing for savings. Much of
the population actually do not have enough money to save, much less spend, and are living
salary to salary. The low savings culture in our country is caused by a number of factors,
including living beyond your means—spending money on things you know you can't afford in
the hopes that you'll somehow make it through the month—and a lack of financial literacy to
help customers manage their finances need and ensure that your family has something to fall
back on in case of an unfortunate event.
3. Types of savings?
 A short-term savings goal will take a year or less to accomplish. Saving for a holiday
or to buy a new pair of sneakers is an example of short-term saving.
 A long-term savings goal will take more than a year to accomplish. Saving for a
house of for retirement is an example of long-term savings.
4. Different savings accounts
Traditional Savings Accounts

These types of savings accounts are great when you save for a big purchase or an
emergency fund.
High yield savings accounts

A high-yield savings account is a type of savings account that can pay up to 10 to 12 times
the national average interest rate of a standard savings account.
Certificate of Deposit (CD) Accounts

Money is locked in for a set amount of time; that is, the amount of money you put in and the
interest rate are fixed. This means that you cannot add more money and the interest rate
will not change during the term of the CD. Having a fixed interest rate means that the
interest rate will not increase or decrease during the term of the CD. When the CD matures,
you can ask the bank to place it in a CD again, along with the money earned in interest.
This is known as “rolling it over.”
Money Market Savings Accounts
This type of account is a great tool if you are saving for a major project such as fixing up a car,
starting a small business, or remodeling a home. You will still be able to access the money as you
make purchases for the project. The Momentum money is an example of such an account. They
offer interest of 8.50% per annum where the interest is calculated daily and paid out monthly.
52 Week Savings Challenge
in the “traditional” weekly savings plan, the money you save rises exponentially. One would save
R10 in the first week, R20 in the second, R30 in the third and so on until you get to R500 in week
50, R510 in week 51 and R520 in week 52. A typical example is shown below.