People should learn how to save

By Khanyisa Tabata
26 July 2009

Finance Minister Pravin Gordhan is reported as saying that savings are a serious reason for concern among all of us and, from the National Treasury’s point of view, they have to attract foreign investments because savings are low in South Africa.

He said one of the challenges facing South Africa was ensuring that it did not have excessive spending and too little savings. However, he added that too little spending and too much savings will not put the country in the right footing either.

That is part of the global imbalance, how we get the right balance or equilibrium is one of the challenges South Africa faces. A balance needs to be found between savings and excess.

Minister Gordhan urged South Africans to use of RSA Retail Savings Bonds to save their money.

Those living in rural areas were the most vulnerable when coming to income and savings. Young and old people were also financially vulnerable.

This is because many young people were looking for jobs while older people became less economically activate.