Economically, times are tough, and many people need to tighten their financial belts.
Statistics South Africa recently announced that the economy declined in the first quarter of 2024. With Youth Month coming to a close, People’s Post spoke to Debt Rescue, who shared some practical financial tips for young people.
Budgeting and Discipline for Students
Annaline van der Poel, chief legal officer for Debt Rescue, highlighted the importance of budgeting and discipline for students managing low incomes. She advises students to create a detailed budget, prioritise essential expenses, and avoid unnecessary debt by using credit cards sparingly. Van der Poel also shared tips like cooking at home, using student discounts, and buying used textbooks to save money.
Financial Management for First-Time Employees
For first-time employees, Van der Poel recommends managing their newfound income wisely. She suggests creating a budget, saving a portion of income before spending, and paying off high-interest debts first. Additionally, building an emergency fund and planning for future goals like education or buying a home are crucial steps.
Teaching Financial Literacy to Children
Parents can start teaching their children about saving from an early age. Van der Poel explained that introducing financial concepts early helps foster good habits and empowers children with financial literacy. Simple activities like counting coins and saving in a piggy bank can lay a strong foundation for future financial health.
