Parents

StarSaver™ is a school-based programme allowing volunteers from partaking banks and financial institutions to provide hour-long lessons on savings to learners up to grade seven.

It is ‘Proudly South African’ accredited and aligned to the ethos: ‘Make Everyday a Mandela Day’. The programme endeavours to employ different ways of improving the preservation of the savings message.

The StarSaver™ programme offers an impeccable chance for financial institutions to join forces with others beside the financial sector to highlight financial matters not only for young individuals but as well as for grown-ups, because Money Matters are important to everyone.

The two main objectives of the Starsaver™ programme are to nurture an ethos of saving amid pupils and encourage volunteerism of bankers and financial sector professionals.

Starsaver™ has confidence in children and young people to turn into empowered economic residents, adept of understanding the significance of saving, and equipped with the abilities to be hired and generate their own means of support.

The programme wants young people to learn to manage their money sensibly.

By permitting children and youth, we can aid them to create a confident trend that will grow from themselves, to their families and to whole societies.

The central belief behind the programme is that financial literacy, the ownership of knowledge and understanding of financial matters is a talent that can be learnt.

Experts in the financial industry volunteer their time to do demonstrations at schools.

The lesson plan was established in conjunction with the Department of Basic Education, and incorporated within the Economic Management Science (EMS) subject of the school curriculum.

 

Lessons are designed to teach learners how to:

  • Create and understand budgets
  • Differentiate between needs and wants
  • Track daily expenses
  • Set realistic goals and plan accordingly
  • Learn how to make saving money part of their lives
  • Get tips on safe and secure banking
  • Learn about financial dignity
  • Appreciate Entrepreneurship

Lesson Plans

StarSavers is a program developed by the Banking Association of South Africa, that aims to help children become more financially savvy by teaching them about the financial world.

Grade 7 lesson Plan

Materials needed
⦁ Evaluation forms
⦁ Department of Basic Education letter
⦁ StarSaver™ Money Savvy Booklets to leave with teacher

In the classroom
⦁ Introduce yourself clearly
⦁ Do an icebreaker
⦁ Relax!!!

CAPS Topics
Topic: Financial literacy

Accounting concepts: Term 2 Weeks 2–3
Entrepreneurship: Businesses: Term 1 Weeks 8–10

Activity 1 What do you know about money, banks and business?!

About 5 minutes

Aim: To find out learners’ prior knowledge of relevant terms and concepts

Initiate a brief conversation with learners to find out what they already know about needs, wants, budgeting and saving. Here are some questions you can ask to get the conversation going:

  • Why do we need money? [to buy things we need and want]
  • What can we do to help to make sure that we have money to buy things we need? [save/make a budget]
  • What is income? [the money we earn/receive] What are expenses? [the money we spend]
  • How do we know how much of our income we can save and how much to spend? [make a budget]
  • Who controls the amount of paper money and coins that are made in South Africa? Explain that it is the South African Reserve Bank

Find out what learners already know about businesses, and if they have any plans for Entrepreneur’s Day (in the second half of Term 3). Explain that a business makes money by selling things that people need, or want, to buy. Ask learners to give examples of different types of businesses. Draw out the following points:

  • Businesses provide products and services for people to buy.
  • There are laws and regulations that businesses must follow. These are needed to make sure that working conditions are safe for employees and that they are paid fair wages; to protect our environment; and to protect investors’ money. If a business does not keep to the law it can be fined or made to pay damages.
  • Responsible businesses play an important role in our society. They create fair jobs and look after our environment.

Explain that banks are businesses that trade in money. Ask questions, or give examples, to draw out what learners already know about banks.

Briefly outline what you plan to cover during the rest of the session. Point out that during the session, you would welcome learners asking you questions if they have any specific queries about saving, banking or starting a business. If needed, make a note of these as they are raised and answer them during the appropriate activities.

CAPS Topics
Topic: Financial literacy
Income and expenses: Term 2 Weeks 4–6 Budgets: Term 2 Weeks 7–8
Savings: Term 4 Weeks 5–7

Activity 2 Identify principles of saving
About 10 minutes

Aim: To encourage learners to identify the benefits of saving and some tips for saving

1. With your co-facilitator, act out a short scenario to introduce the concept of saving in a fun way (1–2 minutes). For example, one of you could put a moneybox on the table and put some coins in it. Your partner could act surprised, take the box and try to persuade you to open it and use the money to take both of you to the movies or to a restaurant for supper. You need to resist and explain why you want to save the money. Both of you can appeal to learners to support you. (When acting out, it may help to use a prop to help change character, for example put on a hat.)

2. Ask learners:

What does ‘saving’ mean? [not spending all the money you have but putting some away in a safe place to use in the future or until you have enough to buy something you want but cannot afford now]

Do you think it is important to save? Why/why not? [to make sure you have money to buy what you need; to save for emergencies; so you can afford to buy something you really want, without having to borrow money for it; to start a business]

3. Show learners the elements of a personal budget, and how a budget can be used as a tool to work out how much to save (see example below). Ask learners to identify the type of things you need to include in your budget.

  • If you want to increase the amount you save every month, which expenses could you reduce? [the things you want, and perhaps the money you set aside for unexpected things but did not need to use that month]

A template for a personal budget for one week/month

TopicContent (including the term and week it is taught in school)
The economy
The circular flowTerm 1 Weeks 5–10
the participants in the circular flow of a closed economy; flow of goods and services, money and factors of production in the circular flow of a closed economy; illustrate by using a flow diagram [Activity 1]
Financial literacy
Credit transactions – debtorsTerm 2 Weeks 2–7
credit sales; debtors; National Credit Act [Activity 3]

4. Ask learners to identify some things that can help people to save. Write the list of tips on the board, include:

  • If you want to increase the amount you save every month, which expenses could you reduce? [the things you want, and perhaps the money you set aside for unexpected things but did not need to use that month]
  • put needs before wants
  • make a budget
  • write down a savings goal and make a plan for how you can achieve your goal
  • save small amounts regularly, and watch your savings grow
  • use a moneybox
  • save first, spend later – put the money you can afford to save in your moneybox or savings account when you receive your money, before you spend any of it
  • open a savings account in a bank, but be careful how you use it so you keep service charges to a minimum (you can explain more about this in Activity 3).

CAPS Topics
Topic: Financial literacy Savings:
Term 4 Weeks 5–7

Activity 3 Using a bank account

Aim: To introduce learners to the concept of banking, and precautions to take when using an ATM (automatic teller machine)

1. Begin the activity with a general conversation with learners about banks. Some general terms and concepts you may need to clarify are listed below.

Banks and banking – key points

  • People put their money in a bank account to keep it safe. They are called depositors.
  • Money that is put into a bank account is called a deposit. Money that is taken out is called a withdrawal.
  • Banks charge fees for their services. These are called bank charges or service fees.
  • The bank lends depositors’ money to other people, for example to buy a house or start a business. This money is called a bank loan. People pay it back over time, with interest. Interest is a fee that is paid in return for borrowing money.
  • Banks must make sure that they always have enough money to give back to depositors. This means that they have to be careful to whom they lend money, and make sure that the borrowers can pay it back. It is the job of the South African Reserve Bank to check that the banks operate correctly.
  • The National Credit Regulator (NCR) is an institution that makes sure that banks and other organisations that give loans operate according to the law and treat customers fairly. NCR promotes responsible lending.

Note: Depending on learners’ questions, you may also need to explain that on some accounts (such as investment accounts), banks pay interest to the account holder, it is like a fee for the banks using the money to lend to other clients. People pay interest if they buy something on credit, or HP (hire purchase).

2. Explain that there are different types of bank accounts and that different banks offer different services. Before choosing a particular bank, or type of account, you need to do some research to find out what suits your needs. Visit different banks, read their leaflets and ask questions.

Before you open a bank account, make sure that you understand any risks and conditions, such as bank charges and how much money you can withdraw at one time.

  • If you wanted to open a savings account, what steps would you follow? Clarify the process as needed, pointing out that learners would have to go with their guardian and take the relevant documents (see below).

Documents needed to open a bank account:

  • a copy of your identity document (ID) or birth certificate if you do not have an ID/li>
  • proof of where you live, such as a bill from the council (electricity, water) or Telkom, or a lease agreement with your landlord – the document must have your address on it and it must not be more than three months old/li>
  • tax payers also need to take a document from SARS with their tax number on it.

Banks need to keep such information about you, in terms of FICA (the Financial Intelligence Centre Act 38 of 2001). If a bank suspects that any of its clients is involved in illegal activities, such as money laundering or fraud, it has to give the clients’ details to the Financial Intelligence Centre so they can investigate.

3. Tell learners a scenario, like the one below, to show the importance of understanding bank charges (service fees).

It is important to budget for bank charges
Every month, Kabelo put R50 into his bank account. During the month, he took money out twice to pay his expenses. The total amount he took out was R40. He expected to have R10 left at the end of the month. But he only had R8!

  • Why do you think this was? [he had forgotten to budget for bank charges, his bank charged him R1 for each withdrawal]
  • What can Kabelo do to reduce his bank charges? [only make one withdrawal a month; or change the type of account, or find another bank that does not charge so much]

Explain that every time you put money in or take money out of your account, it is called a transaction. A bank charges fees for some transactions. Depending on the type of account, you may be allowed a certain number of transactions free. It is important to find out which transactions your bank charges for.

4. Explain the different ways that you can put money in and take money out of a bank account:

  • go inside the bank and make deposits and withdrawals, you need to fill out correct forms (slips); show learners some real deposit and withdrawal slips
  • use your cell phone
  • use your bank debit card to pay for things at shops
  • use an ATM (automatic teller machine).

5. Explain that the South African Banking Risk Information Centre (SABRIC) provides information to help people avoid getting their money stolen through bank fraud. They also advise people about using ATMs safely.

6. Ask if any learners have used an ATM. If they have, ask a volunteer to describe what they did. If not, briefly explain the process. [You insert your card, and follow the instructions. You will be asked to: a) key in your PIN (personal identification number); b) identify the transaction you need (amount to withdraw or deposit). The machine will give you the money, or take your deposit envelope, and give you a receipt]

7. Act out a scenario, like the one suggested below, to help learners identify some safety tips when using an ATM.

 

Example scenario for using an ATM

Set up a pretend ATM on a table (e.g. use a cardboard box with a screen and keyboard drawn on it). Call for a volunteer to act out making a transaction at an ATM. Give the learner a cardboard ATM card to use, and secretly show them a PIN number.

Pretend to be someone trying to get the learner’s PIN number and act out different ways of doing this. For example, look over their shoulder; stand by their side and ask if you can help them.

The other learners can try to warn the bank’s ‘customer’, and tell them what to do to protect their PIN.

8. With help from learners, write a list of tips to stay safe from bank crime – both at ATMs and inside a bank. Write the list on the board. The list should include:

  • never tell anyone your PIN number
  • always know where your bank card is
  • if your bank card is missing, report it to your bank
  • never ask strangers to help with your ATM transaction
  • shield the PIN pad with your hand when keying in your PIN, so people cannot see which numbers you press
  • do not let anyone stand too close to you when you are using the ATM
  • do not let anyone distract you when you are making your transaction
  • put your money away safely before you leave a bank/ATM.

CAPS Topics
Financial literacy
Income and expenses: Term 2 Weeks 4–6

Entrepreneurship
The entrepreneur: Term 3 Weeks 2–3
Starting a business: Term 3 Weeks 4–5

The economy
Inequality and poverty: Term 3 Weeks 8–10

Activity 4 Starting a business

About 20 minutes

Aim: To illustrate the process of starting a business, investing in a business and strategies for making your business a success

1. Ask learners:

  • What is an entrepreneur? [a person who starts a business]
  • Who is an entrepreneur in your community? [learners may suggest some famous business tycoons, but also encourage them to think of people running local shops or services]

2. Use a story, like the one below, to take learners through the process of developing a budget for a business. You can ask learners for their own ideas for the relevant costs to include.

Example of a business scenario

Mpumi’s business, based on buying toys made out of waste materials (plastic bags and cans) and selling them to tourists

Mpumi decided to start a small business. Last year she sold T-shirts, printed with paintings drawn by South African artists, to tourists. She got to know the places in her city that tourists liked to visit. Since then she has been doing some research to find out the type of things that tourists like to buy, and the best places to sell them. She found out that many tourists liked to buy things that were made by local craftspeople. They liked things that were small, so they were easy for them to carry on their journey home, and not too expensive. Many tourists also particularly liked to buy things made of materials that would otherwise have been thrown away.

Mpumi decided to start a business selling small toys made by local artists out of used plastic bags and drink cans. She found out that:

  • the artists will sell the toys to her for R10 each
  • tourists will pay R15 for a toy.

With R100 Mpumi buys 8 toys and covers her transport costs. She sells all the toys in one week and makes a total of R120. She saves R20 and uses the rest to buy another 8 toys.

Mpumi’s budget for one week

 Amount (R)
Income
Sales (8 toys x R15)120
Expenses
Cost of 8 toys80
Cost of transport20
Total Expenses100
Profit (income – expenses)120 – 100 = 20

Mpumi decides to save the R20 profit to pay back her uncle.

  • How much money had Mpumi saved by the end of six weeks? R120 [R20 x 6]

By the end of six weeks Mpumi had saved enough money to pay back her uncle’s loan with R20 interest.

Mpumi continues to save R20 every week.

  • How do you think Mpumi can use her profits to help her business to grow? [for example, she could buy more toys, pay to print a leaflet to advertise the toys …]

3. Clarify the key points shown in the story:

  • a budget is a tool to help manage your money, and achieve your goals
  • the importance of saving to pay off a loan
  • using some of the profits to invest in a business.

4. Point out that running a business, and making an investment, comes with some risk. Ask learners:

  • Could Mpumi’s uncle be sure that he would get her R100 back? Why/why not?
  • Encourage learners to identify the risks and talk about them. For example: Mpumi may not sell 8 toys each week; the tourists may pay less than R15 for a toy; one week Mpumi may get sick and not be able to work.

5. Encourage learners to think about what businesses can do to reduce the risk for investors. For example, you could ask:

  • If you were an investor, like Mpumi’s uncle, what type of things would you look for in a business that would give you confidence that it was likely to succeed – and so reduce the risk of you loosing your money?

Make a list of learners’ ideas, and make suggestions as needed, using the examples in Mpumi’s story. Include:

  • The need to think about the strengths, weaknesses, opportunities, threats for the business. For example, finding out about:
    • the needs and wants of consumers: Is there a need for the product? How much will people pay for it?
    • advertising and competition: How will you tell people it is available? What is special about your product? Why should people buy it rather than a similar product made by someone else? Which other businesses will you be competing with?
    • reputation – this relates to the character of the people managing the business and the trust you have in them. Do you think they are reliable, honest, hard working?
    • systems and processes for keeping track of the money (budgets and financial records)
    • providing information for investors: regular reports about how the business is going and how it affects local people and the environment. Does it look after its employees and pay fair wages? Does it recycle its waste materials? What does it do to reduce pollution?

6. Show learners how a table can be used as a tool to help identify, and record, the strengths, weaknesses, opportunities and threats (SWOT) of a business. An example is given below, based on Mpumi’s business. Make sure that you clearly explain the difference between ‘strengths and weaknesses’ (i.e. characteristics of the people in the business, the product or available resources – factors that are more within the entrepreneur’s control) and ‘opportunities and threats’ (i.e. factors relating to the wider context in which the business operates, and which the entrepreneur needs to be aware of, and respond to, if the business is to develop and survive in a changing world).

Point out that doing a SWOT analysis will help an entrepreneur identify what needs changing or improving in the business. For example, some extra training may help to turn a weakness into a strength; or adapting your product may change a threat from a competitor into an opportunity.

A SWOT analysis for Mpumi’s business
(example only, learners may suggest other factors)

Strengths
  • Toys are made out of reused materials, so helps to keep costs low

  • Toys made by local craftspeople

  • Toys are small and not expensive, so easier to make and costs are kept low

  • Tourists like to buy such toys – so there is a market for them

  • Research has been done and the places where tourists visit and the type of things they like to buy have been identified

  • Already have one investor – so can make a small number of toys

  • The artists are talented, hardworking and creative – always ready to try out new designs and ideas for different toys

  • Mpumi, and her team of artists, have a good reputation in the local community for being honest and hardworking

Weaknesses
  • It is a new business, it may take time for the artists to learn to make the type of toys that most attract tourists – at the beginning some types of toys may not sell

  • Only have enough money to produce a small number of toys

Opportunities
  • The toys can be sold, or advertised, in different places that tourists visit, so more customers can be reached

  • Making toys out of materials that other people throw away helps to reduce waste. Organisations that are concerned about reducing waste (e.g. the local council, shops or recycling companies) may like to support the project, for example by advertising the toys or putting out special bins in which people put their empty cans and plastic bags (the artists would then save time spent collecting their materials so they could spend longer on designing and making their products)

  • South African tourists may like to buy the toys as well as tourists from other countries

Threats
  • Competition from businesses selling other types of products to tourists (e.g. T-shirts)

  • Competition from similar businesses making toys out of recycled materials

  • The number of tourists visiting the area may go down due to factors beyond Mpumi’s control, such as price of air fares, weather changes, global events, etc<./li>

Additional information for teacher

A business plan is a document about a new business that can be given to a bank or potential investor to help them decide if they would like to support it.

Key elements of a business plan

Name of business
Logo and slogan (or by-line)
The business motto (or short vision statement)
Contents page (a list of the different sections in the plan)

Introduction
(brief summary of your business idea)

Description of the product or service Analysis of the strengths, weaknesses, opportunities, threats

Location of the business

Type of ownership
(include the reason for choosing that type of ownership, its advantages and disadvantages)

Competition
(how do your products or services compare with those provided by other companies?)

Marketing plan
(describe your target market (main customers), the selling price, advertising)

Financial plan and proposed budget
(What will be your start-up costs or capital? How much will it cost to make your product or provide your service (include raw materials and labour costs)? What is the breakeven point (how many products will you need to sell to cover your costs?)

Human resources
(How many people will work in the business? Include the different types of jobs/positions, and an organogram (a diagram that shows how the different types of staff relate to each other, who they report to, etc.)

Conclusion
A brief summary of the goals of the business and why you think it will succeed (i.e. will still be operating in three years from now)

Programme Integration of StarSaver!
Why Programme Integration?

Critical for the sustainability of the StarSaver™ programme is integration with other financial literacy and employee volunteerism programmes. This integration ensures that financial literacy is promoted throughout the year and not only during the heightened period in March during Global Money Week and in July, which is Savings Month in South Africa.

The cornerstone of programme integration is to leverage off synergies, achieve greater outreach, and deepen financial markets. Financial literacy is the core platform for financial inclusion and is a business imperative to facilitate meaningful inclusive socio-economic growth of South Africa. The Banking Association South Africa has partnered with various organisations to extend outreach and developmental impact.

Key target groups for the various interventions that have piggy-backed on StarSaver™ are youth, vulnerable groupings, the unbanked, the under-banked and the newly banked. Cutting across the various themes of these interventions is to demystify banking, democratise finance and improve financial capability through inclusive finance. The various StarSaver™ participating banks and financial sector institutions are continuously involved in various programme integration initiatives.

Activity 5 Safe and Secure Savings

SABRIC / South African Banking Risk Information Centre was established to assist the banking industry to combat organized crime. SABRIC makes South African banking safe, secure and fraud free.

  • Key stakeholders of SABRIC are the banks and major Cash-in-Transit (CiT) companies.
  • The principle business of SABRIC is to detect, prevent and reduce organized crime in the banking industry through effective public-private partnerships.
  • The company also provides crime risk information and consequence management services to the banking industry and CiT companies.
  • SABRIC’s key responsibility is the co-ordination of activities to address organized bank related crime, i.e., commercial and violent crime.
  • The company interfaces with a range of external organizations and public and private partners, most notably to progress crime risk reduction.

Activity on ATMs and Safe Banking:
Theme: Safety of Savings

Facilitator: One of the most important things that you should know about saving is making sure that your savings are safe. You ensure this by using safe banking practices around ATMs.

1. Find out what learners already understand about an ATM. For example, ask learner:

  • Can anyone tell me what an ATM is?
  • Has anyone of you seen a bank card?
  • Can anyone tell me how an ATM works? (You expect the learners to at least tell you that you go to an ATM, insert your card and the ATM dispenses money).

2. Explain to learners that an ATM works just the same as a bank teller inside the bank, only that with an ATM you are interacting with an electronic teller. Explain that the ATM transaction works in the following manner:

  • You insert your card into the ATM card slot
  • You safely key-in you ATM PIN (the PIN is your secret) [PIN – Personal Information Number])
  • You key-in the amount you request
  • Then the ATM dispenses the money

3. Find out from the learners why they think it is important to use safe banking practices when using an ATM (So that you do not lose your savings as a result of crime and your savings can grow)

  • Safe practices when using an ATM
  • Never ask strangers to help with your ATM transaction
  • Never disclose your ATM PIN to anyone (it should be your secret)
  • Always cover the PIN pad with your spare hand when keying in your PIN
  • Never allow anyone to stand too close to when making your ATM transactions
  • Make sure that there is no one watching you when entering in your secret PIN number; shield the ATM keypad with your other hand
  • Never let anyone distract you when making an ATM transaction.

Activity on Safe / Unsafe Scenarios:

Facilitator: Give the learners the ‘SAFE’ and ‘NOT SAFE’ flashcards and explain what each flashcard means. Repeat the explanation. Explain to the learners that you will paint a scenario on a practice around the ATM and ask them if that is a safe banking practice or not. Repeat the instructions.

Scenario 1:

Gogo Khumalo goes to the ATM because it is pension day. Gogo Khumalo wants to withdraw money, but because Gogo cannot see properly, she asks the security guarding the ATM to help her.

Do you think this is a safe banking practice? (Ask the learners to show with their flashcards whether it is ‘SAFE’ or ‘NOT SAFE’). (NOT SAFE)

Where there are dissenting views, ask the learners to explain ‘why?’ Thereafter, provide reinforcement by repeating the correct answer.

Scenario 2:

Baba Zungu goes to the ATM. His cell phone rings immediately after he inserts his bank card. Baba Zungu answers his phone, while at the same time he is keying in his ATM PIN.

Do you think this is a safe banking practice? (Ask the learners to show with their flashcards whether it is ‘SAFE’ or ‘NOT SAFE’). (NOT SAFE)

Facilitator: Conclude by summarizing the key theme of the lesson and ask the learners to repeat after you:

We practice safe banking so that our savings can be SAFE and GROW!

star saver croud2

Grade 8 lesson Plan

Materials needed

  • Evaluation forms
  • Department of Basic Education letter
  • Copies of ‘My savings plan and budget’ template to give to learners (Activity 2)
  • A5 cards for learners, with ‘Safe’ on one side and ‘Unsafe’ on the other side (one card for each learner) (Activity 3)
  • Copies of Bank Statement 1 and 2 (one copy of each statement per pair of learners) (Activity 4)
  • StarSaver™ Money Savvy Booklets to leave with teacher

In the classroom
⦁ Introduce yourself clearly
⦁ Do an icebreaker
⦁ Relax!!!

CAPS Topics
Topic: Financial literacy

Accounting concepts: Term 1 Weeks 7–8

Activity 1 Share what you know about saving, banking and business

About 5 minutes

Aim: To find out learners’ prior knowledge of relevant terms and concepts

1. Have a brief conversation with learners to find out what they already know about business, savings and banks.

You could ask questions such as:

  • Do you know anyone who runs their own business? What type of business is it?
  • Have you ever made anything to sell or provided a service to earn money? What went well? What would you do differently next time?
  • Where do people get money to start a business? [save it, borrow it from a bank or other institution, ask for investors]
  • Why do people use banks? [to keep their money safe, to help them manage their money, to borrow money] Explain that there are different types of bank accounts, depending on the services that people need, for example savings accounts, current accounts, business accounts.

2. Explain that banks are businesses that trade in money. Depositors are people who put their money in a bank to keep it safe, banks charge fees for this service. Banks use depositors’ money to lend to other people, for example to buy a house or start a business. Banks must make sure that they always have enough money to give back to depositors.

  • Which institution has to check that banks operate correctly? [the South African Reserve Bank (SARB), this includes protecting depositors’ money]. SARB is the regulator of banks.

Briefly outline what you plan to cover during the rest of the session.

CAPS Topics
Topic: Financial literacy
Income and expenses: Term 2 Weeks 4–6 Budgets: Term 2 Weeks 7–8
Savings: Term 4 Weeks 5–7

Activity 2 Identify principles of saving
About 10 minutes

Aim:  To encourage learners to identify the benefits of saving and things that can help them to save

1. Ask learners if they think it is important to save. Why? Why not? Use examples as necessary, to draw out the main reasons why it is a good idea to save some of your income. [to make sure you have money to buy what you need; to save for emergencies; to be able to buy something you really want, without having to borrow money for it; to start a business]

  • What is a budget? Why is it useful? [it helps us to keep track of money, helps us to work out how much we can afford to save]
  • Clarify the key elements of a budget [income; expenses (things we need, want, money for unexpected things); amount we can save (income minus expenses)]

2. Ask learners what they think would help young people to save. Record their ideas on the board. Some things you could help them to identify include:

  • put needs before wants
  • save small amounts regularly, and watch your savings grow
  • use a money box
  • open a savings account in a bank
  • save first, spend later – put the money you can afford to save in your moneybox or savings account when you receive your money, before you spend any of it
  • have a savings goal: write down something that you want to save for
  • make a savings plan: write down what you will do to achieve your savings goal.

3. Explain the process of making a savings goal, and a savings plan. Ask learners for examples of savings goals, and they type of things they can do to achieve them. Give learners a copy of a template that they can use to create their own savings plan in their own time.

4. Explain the process of opening a savings account at a bank. Point out the difference between a savings account and an ordinary transaction account.
Explain that every time you make a transaction, the bank will charge a fee. These fees are called service charges. It is important to know how much your bank will charge for these. Warn learners that they must be careful about how many transactions they make a month. Otherwise they may have to pay a lot of money in bank charges. For example, your account may only give you one free withdrawal every month.

My savings plan and budget
My savings goal
[write down what you want to save up for and when you aim to reach your goal]
My budget for ………………….. [e.g. one week, two months …]

 Amount (R)
Income
Total Income
Expenses (Cost of things I buy)
Things I need to buy
Things I want to buy
Unexpected things that I may need to pay for
Total Expenses
Savings (income minus expenses)

CAPS Topics
Topic: Financial literacy
Accounting concepts: Term 1 Weeks 7–8

Activity 3 Using an ATM

Aim: To provide an opportunity for learners to identify precautions to take when using an ATM (automatic teller machine)

1. Find out what learners know about the different methods of banking (putting money in and taking it out of a bank account). Help them to identify:

  • visiting the bank and to make deposits and withdrawals
  • using a cell phone
  • using a bank debit card to pay for things at shops
  • using an ATM.

2. Ask if any learners have used an ATM. If so, ask one such learner to explain what an ATM is and how it is used.

3. Clarify the steps in the process as needed. [You insert your card, and follow the instructions. You will be asked to: a) key in you PIN (personal identification number); b) identify the transaction you need (amount to withdraw or deposit). The machine will give you the money, or take your deposit envelope, and give you a receipt.]

4. Facilitate a quiz about safe/unsafe ways of using an ATM. Give each learner a card with ‘Safe’ on one side and ‘Unsafe’ on the other. Call out different scenarios for using an ATM and ask learners to tell you if it’s safe or unsafe by holding up the relevant side of their card. After each question/scenario, ask learners to write down a relevant tip for using an ATM safely. At the end of the quiz ask learners to call out the tips on their list, while you compile a list on the board. The list should include:

  • never tell anyone your PIN number
  • always know where your bank card is
  • if your bank card is missing, report it to your bank
  • never ask strangers to help with your ATM transaction
  • shield the PIN pad with your hand when keying in your PIN, so people cannot see which numbers you press
  • do not let anyone stand too close to you when you are using the ATM
  • do not let anyone distract you when you are making your transaction
  • put your money away safely before you leave a bank/ATM.

5. Explain that the South African Banking Risk Information Centre (SABRIC) provides information to help people avoid getting the money in their bank stolen through bank fraud. They also advise people about using ATMs safely.

CAPS Topics
Financial literacy
Accounting concepts: Term 1 Weeks 7–8
Source documents: Term 1 Weeks 9–10

Activity 4 Read a bank statement

1. Explain the meaning of the term transaction. [when money goes in or out of an account]

  • If you have a bank account, how can you keep track of the money that you put in and money that you take out of the account? [keep receipts of transactions, such as copies of withdrawal and deposit slips, read and keep bank statements]

Hand out some deposit slips. Ask learners to identify the sections that you have to complete. Do the same with withdrawal slips.

2. Explain that financial management in a business is similar to managing your personal money. You have to keep track of the money that comes in, and the money that goes out of the business.

  • What do we call the money that comes into a business? [income]
  • What type of documents help you keep track of the income for a business? [invoices (bills) that you send to customers, and cash register slips (till slips)]
  • What do we call the money that the business spends? [expenses]
  • What type of documents can help you keep track of the expenses of your business? [receipts you get when you buy things, records of how much you pay your staff/employees]

You will also need all these records to work out how much tax the business has to pay to SARS (South African Revenue Service). You must keep all the financial records for five years, in case SARS needs to check that you have paid the correct amount of tax.
⦁ Why is it important that people pay tax? [so the government has enough money to pay for community services that we all share, such as public health services, education, transport, parks, and grants for the elderly and vulnerable in our society]

3. Give each pair of learners a copy of Bank Statement 1. Ask learners to tell you what the different parts of the statement mean. Make sure they understand which elements are credits (money coming into the account) and which are debits (money going out).

Explain the concept of borrowing money from a bank (taking out a loan) and the payment of interest.

Banks use depositors’ money to lend to other people, for example to buy a house or start a business. This money is called a loan. The borrowers pay it back over a certain period of time, with an extra amount of money, called interest. Interest is like a fee that you pay for borrowing the money.

4. Give out Bank Statement 2. Ask learners to compare them.

  • Which of the bank statements show a business that is making a profit? [Bank Statement 1]
  • Which shows the business making a loss? [Bank Statement 2]

5. Ask learners for their ideas for what the business can do to reduce its losses [for example, reduce its electricity and phone costs, get more customers or charge more for its services]

6. End the activity with a warning about getting into debt. When it comes to wise money management, it is better to save up for things to buy rather than taking out a loan, or buying on credit. Point out that:

  • Good debt is when you borrow money to buy something essential, that you cannot buy without a loan, such as a home. For example, when you buy a house you have to save up some of the money first and then borrow the rest. Over time, the house will keep, or even gain, some value. It becomes an asset that you can sell if you need the money in the future.
  • Bad debt is when you borrow money to pay for something that either you do not really need or you can save the money to pay for if you budget and manage your money carefully.

Explain that the National Credit Regulator (NCR) helps to protect people from creditors who offer unfair terms/interest rates. Mention loan sharks and how they charge very high interest rates that people can never afford to pay off. Loan sharks can be reported to the NCR.

A loan is money that you borrow from a person or an institution. You pay the money back over a certain period of time, usually with interest.

Interest is a fee that is paid in return for borrowing money or buying something on credit. A bank charges interest for lending you money. On some accounts, banks pay interest to the account holder as a fee for the banks using the money to lend to other clients. Shops charge interest on goods bought on credit or hire purchase (HP)

Example bank statements

CAPS Topics
Entrepreneurship
Factors of production: Term 2 Weeks 4–6

Activity 5 Borrowing money from a bank to start a business
Aim: To explain the process of borrowing capital

1. Ask learners what capital means in terms of a business. [a sum of money that can be used to start, or develop, a business] Explain that it can be difficult to save up enough money to start a business or buy new equipment; so one way to get capital is to borrow money from a bank.

2. Explain that banks must be careful not to lend money to people who cannot pay it back. The money that banks lend belongs to the people who have accounts with the bank (depositors). The bank must guarantee that they can give depositors their money back. One of the things that helps a bank manager to decide whether or not to lend money to a business, is the business plan.

3. Explain learners will work in pairs to read a business plan. Their task is to role-play the meeting between an entrepreneur and the bank manager. Does the bank manager decide to give the loan or not? Each pair has to take on the role of either (a) the entrepreneur or (b) the bank manager. They need to prepare some key points, or questions, for the meeting. Give each pair of learners a copy of their role-play sheet and one of the business plans. Allow about 10 minutes for them to talk about the situation, and decide what they would do.

4. For Business Plan 1, ask a pair of volunteers to tell the rest of the class what they decided. Do the others agree with their decision? Why/why not?

Then ask a pair of learners to role-play what they decided for Business Plan 2.
Compare the two business plans (make sure each pair of the learners has a copy of both plans if needed).

Identify how Business Plan 2 could be improved. Would that change the bank manager’s decision?
[Note the business plans are for the same company – as it is the plans that are being compared, not the type of business]
Summarise the key things that a bank looks for in a good business plan.

5. Briefly mention the other factors that affect a bank’s decision about whether or not to give a loan. For example, trust that may have developed between the bank manger and entrepreneur; the credit bureau check to see if the entrepreneur has any unpaid debts.

Point out that there is always an element of risk – the business may not perform well due to unforeseen circumstances, for example the price of petrol going up, which would increase the costs, regular customers moving away from the area and the difficulty of finding new customers. The business plan will need to take these things into account and include a contingency fee in its projected costs.

Role play sheet for bank manager

  • Do you think the company will be able to pay back the loan, with interest?
  • What questions will you ask the entrepreneur about their plans?

Role play sheet for entrepreneur

  • Why should the bank support your business?
  • What will you do to make sure that you can afford the loan repayments over the next three years?

Business plan 1
CAPS Topics
Topic: Entrepreneurship
Factors of production: Term 2 Weeks 4–6

Capital – borrowed and own capital; labour – unskilled, semi-skilled and skilled labour; role of workers in the business; fair employment practices; natural resources; entrepreneurship; remuneration of the factors of production.

Topic: The economy
Standard of living: productive use of resources to promote a healthy environment [Activity 5]

Additional information for teacher
A business plan is a document about a new business that can be given to a bank or potential investor to help them decide if they would like to support it.

Key elements of a business plan
Name of business
Logo and slogan (or by-line)
The business motto (or short vision statement)
Contents page (a list of the different sections in the plan)
Introduction (brief summary of your business idea)
Description of the product or service
Analysis of the strengths, weaknesses, opportunities, threats
Location of the business
Type of ownership (include the reason for choosing that type of ownership, its advantages and disadvantages)
Competition
(how do your products or services compare with those provided by other companies?)
Marketing plan
(describe your target market (main customers), the selling price, advertising)
Financial plan and proposed budget
(What will be your start-up costs or capital? How much will it cost to make your product or provide your service (include raw materials and labour costs)? What is the breakeven point (how many products will you need to sell to cover your costs?)
Human Resources
(How many people will work in the business? Include the different types of jobs/positions, and an organogram (a diagram that shows how the different types of staff relate to each other, who they report to, etc.)
Conclusion
A brief summary of the goals of the business and why you think it will succeed (i.e. will still be operating in three years from now)

Name of business: Pit stop
Logo and slogan (or byline): Healthy bites

The business motto (or short vision statement):
To provide healthy, tasty fast food for people on
the move.

Introduction

Description of the product or service
A fast food restaurant that provides both eat-in and take-away services.
Freshly made on the premises.
Provides tasty, nutritious juices and snacks that are low in fat, salt and sugar.
Recipes that mix ideas from different cultures to create new tastes
Wherever possible, ingredients are sourced from local farmers.

Analysis of the strengths, weaknesses, opportunities, threats

StrengthsWeaknesses
Our food is healthy and tastyNew brand, people don’t know us yet
OpportunitiesThreats
No other fast food outlet in this area of townCompetition from big fast food chains

Location of the business
Stutterheim, Eastern Cape

Type of ownership
Public limited company.

Competition
Other fast food outlets in the area produce food that is highly processed and high in fat salt and sugar. Research shows that such food contributes to the rising levels of health conditions related to unhealthy eating such as the heart disease, diabetes and obesity.

Marketing plan
Our target market is young people between the ages of 14 –35. People who are tired of the old foreign fast food chains but who want something new and fresh. People who know that to achieve their potential they need to stay healthy and fit. Our prices will be just lower than those of competing fast food chains. By using local produce we will save on transport costs. We will advertise on the local radio youth music programmes, community television, mobile phone and facebook. But we expect our best advertisers to be our customers – who will share their positive experiences about our food and services with their friends.

Financial plan and proposed budget

 Amount
Capital needed40 000
Costs
Ingredients15 000
Wages for Staff20 000
Advertising2 000
Contingency/saving500
Rent2 000
Total40 000
Break even point????

Financial plan (continued)

 Amount  
Projected profit and loss statement
Year 1Year 2Year 3
Income from sales/ services
Total income received
2
Operating costs for the month
Operating Profit (loss)

Projected Budget

 Amount (R)  
Year 1Year 2Year 3

Human resources
1 manager, 2 waitresses, 1 chef, 2 assistant chefs, 1 cleaner

Conclusion
Our business is providing a product that people need – healthy food. Our service allows them to get this in a convenient way, and to socialise with friends and colleagues at the same time. As the economy in our town grows, more people will be able to afford to eat out. Our food will also support local farmers. These are the main reasons why we think our business will be expanding in three years time.

Programme Integration of StarSaver

Why Programme Integration?
Critical for the sustainability of the StarSaver™ programme is integration with other financial literacy and employee volunteerism programmes. This integration ensures that financial literacy is promoted throughout the year and not only during the heightened period in March during Global Money Week and in July, which is Savings Month in South Africa.

The cornerstone of programme integration is to leverage off synergies, achieve greater outreach, and deepen financial markets. Financial literacy is the core platform for financial inclusion and is a business imperative to facilitate meaningful inclusive socio-economic growth of South Africa. The Banking Association South Africa has partnered with various organisations to extend outreach and developmental impact.

Key target groups for the various interventions that have piggy-backed on StarSaver™ are youth, vulnerable groupings, the unbanked, the under-banked and the newly banked. Cutting across the various themes of these interventions is to demystify banking, democratise finance and improve financial capability through inclusive finance. The various StarSaver™ participating banks and financial sector institutions are continuously involved in various programme integration initiatives.

Activity 6 Safe and Secure Savings

SABRIC / South African Banking Risk Information Centre was established to assist the banking industry to combat organized crime. SABRIC makes South African banking safe, secure and fraud free.

  • Key stakeholders of SABRIC are the banks and major Cash-in-Transit (CiT) companies.
  • The principle business of SABRIC is to detect, prevent and reduce organized crime in the banking industry through effective public-private partnerships.
  • The company also provides crime risk information and consequence management services to the banking industry and CiT companies.
  • SABRIC’s key responsibility is the co-ordination of activities to address organized bank related crime, i.e., commercial and violent crime.
  • The company interfaces with a range of external organizations and public and private partners, most notably to progress crime risk reduction.

Activity on ATMs and Safe Banking:
Theme: Safety of Savings

Facilitator: One of the most important things that you should know about saving is making sure that your savings are safe. You ensure this by using safe banking practices around ATMs.

1. Find out what learners already understand about an ATM. For example, ask learner:

  • Can anyone tell me what an ATM is?
  • Has anyone of you seen a bank card?
  • Can anyone tell me how an ATM works? (You expect the learners to at least tell you that you go to an ATM, insert your card and the ATM dispenses money).

2. Explain to learners that an ATM works just the same as a bank teller inside the bank, only that with an ATM you are interacting with an electronic teller. Explain that the ATM transaction works in the following manner:

  • You insert your card into the ATM card slot
  • You safely key-in you ATM PIN (the PIN is your secret) [PIN – Personal Information Number])
  • You key-in the amount you request
  • Then the ATM dispenses the money

3. Find out from the learners why they think it is important to use safe banking practices when using an ATM (So that you do not lose your savings as a result of crime and your savings can grow)

  • Safe practices when using an ATM
  • Never ask strangers to help with your ATM transaction
  • Never disclose your ATM PIN to anyone (it should be your secret)
  • Always cover the PIN pad with your spare hand when keying in your PIN
  • Never allow anyone to stand too close to when making your ATM transactions
  • Make sure that there is no one watching you when entering in your secret PIN number; shield the ATM keypad with your other hand
  • Never let anyone distract you when making an ATM transaction.

Activity on Safe / Unsafe Scenarios:

Facilitator: Give the learners the ‘SAFE’ and ‘NOT SAFE’ flashcards and explain what each flashcard means. Repeat the explanation. Explain to the learners that you will paint a scenario on a practice around the ATM and ask them if that is a safe banking practice or not. Repeat the instructions.

Scenario 1:

Gogo Khumalo goes to the ATM because it is pension day. Gogo Khumalo wants to withdraw money, but because Gogo cannot see properly, she asks the security guarding the ATM to help her.

Do you think this is a safe banking practice? (Ask the learners to show with their flashcards whether it is ‘SAFE’ or ‘NOT SAFE’). (NOT SAFE)

Where there are dissenting views, ask the learners to explain ‘why?’ Thereafter, provide reinforcement by repeating the correct answer.

Scenario 2:

Baba Zungu goes to the ATM. His cell phone rings immediately after he inserts his bank card. Baba Zungu answers his phone, while at the same time he is keying in his ATM PIN.

Do you think this is a safe banking practice? (Ask the learners to show with their flashcards whether it is ‘SAFE’ or ‘NOT SAFE’). (NOT SAFE)

Facilitator: Conclude by summarizing the key theme of the lesson and ask the learners to repeat after you:

We practice safe banking so that our savings can be SAFE and GROW!

star saver croud2

Grade 9 lesson Plan

Materials needed
• Evaluation forms
• Cardboard shapes and labels for the flow diagram (Activity 1)
• An A3 card with the words: ‘Help! What should we do?’ written on it (Activity 3)
• Department of Basic Education letter
• StarSaver™ Money Savvy Booklets to leave with teacher

In the classroom
• Introduce yourself clearly
• Do an icebreaker
• Relax!!!

CAPS Topics
Topic: The economy

The circular flow: Term 1 Weeks 5–10

Activity 1 Savings and the flow of money

About 5 minutes

Aim: To show the role of savings in the flow of goods and services within a community

1. With your co-facilitator, role-play a scenario like the one below. Wear a different hat, jacket or use other props: if it helps you to get into character. Use humour and dramatic expression to get learners’ attention. End the scenario with learners wanting to find out more about the role of saving in the economic system, so they will engage with step four when you build the flow diagram on the board.

Scenario example
Character 1 : Person who does not rust banks or businesses, likes to keep his or her savings in a tin under the floor, where he or she knows they are safe.
Character 2: Local entrepreneur who is trying to encourage a group of local residents to invest some of their savings in their local businesses.

Act out a scene in which the entrepreneur convinces the other person to part with some of their savings .
The entrepreneur does this by answering their questions and addressing their concerns. For example, entrepreneur needs to give the person confidence that they will manage the business well and make it profitable.
They may promise to:
. give regular reports about the company and how it is doing
. not take unnecessary risks, and stay within the law (including paying workers fair wages, avoiding pollution)
. give the person a share of the profits the business makes – if all goes well they should get their savings back plus a bit extra in five years time

. the business will help the local community by providing jobs.

2. When Character 1 has to make their decision, stop. Turn to the learners and ask their advice – what do they think you should do? Act out what the majority suggest.

3. Have a conversation about the scenario. Ask learners:
• Do you think it was wise of the person to give the entrepreneur only some of their savings, and not all
the money? Why/why not?

Explain that one difference between savings and investment is the element of risk. If you invest in a business that fails, you loose your money. But if the business does well, your savings will grow. Also point out that an investment is a long-term saving, you may not be able to use the money you invested in the short-term. Investments need to be made with care and an understanding of the risks involved.

4. Ask learners: How important do you think savings are in the flow of money within a community?

With learners, build a flow diagram to show how money moves between households, businesses and government within a community. Point out the areas where savings can be used to help businesses to grow, create jobs and provide more goods and services.
Also point out that it is important to save so that you have money to buy the things that you need, and want, in the future. It helps to make sure that people can afford to buy the goods and services that businesses provide.

Taxes paid by households and businesses in return for government services

CAPS Topics
Topic: The economy
The circular flow: Term 1 Weeks 5–10

Activity 2 Identify tips for saving
About 10 minutes

Aim: To encourage learners to save and take precautions when using an ATM (automatic teller machine)

1. Ask learners what they think would help young people to save. Record their ideas on the board. Include:

  • write down a savings goal and what you can do to achieve the goal (a savings plan)
  • put needs before wants
  • save small amounts regularly, and watch your savings grow
  • use a moneybox
  • have a savings account in a bank
  • save first, spend later – put the money you can afford to save in your moneybox or savings account when you receive your money, before you spend any of it
  • understand the link between savings and the flow of money within a community.

Ask learners to prioritise the tips/principles. Which three do they think are the most important and why?

2. End the activity with a discussion about using a savings bank account. Mention the points below.

  • There are different ways to make transactions, such as through the cell phone and the internet.
  • Banks charge service fees for transactions. It is important to know which transactions are free (for example some savings accounts allow one free withdrawal a month) to avoid paying bank charges unnecessarily.
  • The South African Banking Risk Information Centre (SABRIC) provides information to help people avoid getting the money in their bank stolen through bank fraud. They also advise people about using ATMs safely.

Ask learners to tell you what precautions to take when using an ATM. For example, do not give people your PIN (personal identification number), be careful no one sees you keying in your PIN.

CAPS Topics
Topic: Financial literacy
Credit transactions, debtors: Term 2 Weeks 2–7

Activity 3 Credit and debt

Aim: An opportunity for learners to discuss some of the problems related to debt and possible solutions, or ways to avoid bad debt

1. The flip side of investment is debt. The longer a business takes to pay back its loan, the more interest it will pay. Make sure that learners understand the meaning of the words loan, credit and interest (see Box below).
Explain to learners that they are going to watch you act out a situation in which many people find themselves. At certain points, you will hold up a card: ‘Help! What should we do?’ and learners need to suggest a way to solve the problem.

A loan is money that you borrow from a person or an institution, such as a bank. You pay the money back over a certain period of time, usually with interest – which is like a fee for the service of lending the money.

Buying something from a shop on credit, is similar to a loan. But instead of giving you the money to buy the item, the shop gives you the item and lets you pay for it over a period of time. But the shop will charge you interest.

Interest is a fee that is paid in return for borrowing money or buying something on credit. A bank will charge interest if it lends you money. On some accounts, banks pay interest to the account holder as a fee for the banks using the money to lend to other clients (as an investment). Shops charge interest on goods bought on credit.

2. With your co-facilitator, assume a character for a role-play, based on a scenario like the one below.

Scenario example: A meeting between a debtor and creditor
Character 1 (debtor): customer who cannot pay his bill
You bought some products from a company.  you could not pay within a 30-day time limit. Now the company is charging you interest. You were told this would happen if you did not pay on time, but you did not realise that the interest rate would be so high - 20% of the original cost!

Character 2 (creditor): Manager of the company
Every month, you have to make sure that you use; and ( company gets in enough money to pay: (a) your workers; (b) the suppliers of the materials you use and (c) . the repayments on the loan you took out from the bank to start your company.
Act out the situation: Role-play the meeting between the characters, with each explaining their side of the story, so learners understand what has happened.

Ask learners for a way forward: Hold up the ‘Help!' card. Still in your character’s role , act out one of the leaners suggestions. Do the characters agree or disagree with it? Why/why not?

If needed, ask learners for help again and explore another idea, until you have found a solution to the problem that both characters can work with.

3. After the role play, facilitate a conversation to draw out some key points, such as:

• The benefits of paying cash rather than buying things on credit (if the customer had saved up to buy the products from the company, s/he would not have got into debt).
• The importance of understanding the terms and conditions on which you buy something (always check what the interest rate is if you are offered credit).
• Companies need to provide clear information to customers, and make sure that they understand the terms of credit.

4. Explain that many people get into personal debt by using credit facilities for inappropriate things. Mention the use of credit cards, and the danger that if people do not pay off the whole amount owed at the end of the month (not just the minimum amount) they will be charged interest and their debt will increase over time.

5. Point out that there are some things that most people cannot afford to buy without a loan, such as a house or a car. Explain that these are things that cost a lot but they will usually keep some value over time (i.e. they may be sold if the money is needed in the future). They are examples of ‘good’ debt.

Point out that there are things that we can do to reduce the risks, and to use loans and credit facilities wisely. For example, make sure the credit provider and/or debt counsellor is registered with the National Credit Regulator (NCR), ask the NCR for advice, make a budget to help you manage your money, make a savings plan rather than buy things on credit.

See the ‘Tips for using credit wisely’ Box for additional information to share with learners if you have time.

Explain more about the National Credit Act (NCA) and the role of the National Credit Regulator (NCR) and how they help to protect consumers and encourage them to use credit wisely and to encourage credit providers to lend responsibly. Some key points are given in the boxes below.
Note: The term ‘credit’ can refer to a loan, or buying something on hire purchase.

The National Credit Regulator (NCR):

• Enforces the National Credit Act and takes action against credit providers that do not keep to the law and regulations.
• Provides information and advice about the National Credit Act and how it protects consumers.
• Registers credit providers, credit bureaus and debt counsellors to make sure that they follow certain standards and regulations.
• Investigates complaints against credit providers and protects consumers’ rights.

The National Credit Act 34 of 2005
The Act regulates credit providers to control reckless lending and the interest rates and fees that credit providers can charge.
The Act protects consumers in the following ways:

• Credit agreements must be simple and clear so that people can understand them.
• Consumers must be given a pre-agreement statement and quotation, which can be cancelled within five days if the consumer does not agree with it.
• Advertising and marketing must contain information about the cost of the credit.
• If a credit provider decides not to give a person credit, they must explain why (give reasons).
• No credit provider is allowed to keep a consumer’s documents.
• People in debt can receive counselling to help them deal with the situation; they can also get assistance to negotiate with the credit provider to restructure the debt.

 

Tips for using credit wisely

  • Save up to pay for what you want before using credit. If you want to buy something that will not last a long time, for example a suit or a small piece of furniture, it is wiser to save up the money to buy it rather than taking out a loan or buying it on credit. This is not only because you will end up paying more for the item as you will have to pay interest, but also because you may still be paying for it after the item has worn out. For big things, like a house or a car, most people have to get a loan. However, once the loan is paid off you will still have the house as an asset, which you can sell again if you need to.
  • If you take out a loan, you will pay more if:
    • the loan is for a large amount of money
    • the interest rate is high
    • the loan term is long – although your monthly instalments may be less, the total amount paid will be more because you are borrowing the money for a longer period of time.

The easiest loans to repay are those that are for a small amount of money, at a low rate of interest and that are paid off within a short period of time.

  • If you take out a loan, make sure that:
    • you know what your monthly instalments will be
    • you know what the total loan amount will be over the whole payment period (the loan amount plus interest) (i.e. the sum of all the instalments)
    • you can afford to keep up the repayments and pay them on time
    • the consequences if you do not pay the instalments or want to cancel the loan
    • the organisation who lends you the money (the creditor) is registered with the National Credit Regulator (NCR) as the NCR sets limits on the amount of interest organisations can charge.
  • When it comes to wise money management, it is better to save up for things to buy rather than taking out a loan, or buying on credit.

Good debt: when you borrow money to buy something essential, that you cannot buy without a loan, such as a home.

Bad debt: when you borrow money to pay for something that either you do not really need or you can save the money to pay for if you budget and manage your money carefully.

Source: Financial Football available on www.FinancialFootballSA.com (Visa South Africa, 2011)

Programme Integration of StarSaver!

Why Programme Integration?
Critical for the sustainability of the StarSaver™ programme is integration with other financial literacy and employee volunteerism programmes. This integration ensures that financial literacy is promoted throughout the year and not only during the heightened period in March during Global Money Week and in July, which is Savings Month in South Africa.

The cornerstone of programme integration is to leverage off synergies, achieve greater outreach, and deepen financial markets. Financial literacy is the core platform for financial inclusion and is a business imperative to facilitate meaningful inclusive socio-economic growth of South Africa. The Banking Association South Africa has partnered with various organisations to extend outreach and developmental impact.

Key target groups for the various interventions that have piggy-backed on StarSaver™ are youth, vulnerable groupings, the unbanked, the under-banked and the newly banked. Cutting across the various themes of these interventions is to demystify banking, democratise finance and improve financial capability through inclusive finance. The various StarSaver™ participating banks and financial sector institutions are continuously involved in various programme integration initiatives.

Activity 4 Safe and Secure Savings

SABRIC / South African Banking Risk Information Centre was established to assist the banking industry to combat organized crime. SABRIC makes South African banking safe, secure and fraud free.

  • Key stakeholders of SABRIC are the banks and major Cash-in-Transit (CiT) companies.
  • The principle business of SABRIC is to detect, prevent and reduce organized crime in the banking industry through effective public-private partnerships.
  • The company also provides crime risk information and consequence management services to the banking industry and CiT companies.
  • SABRIC’s key responsibility is the co-ordination of activities to address organized bank related crime, i.e., commercial and violent crime.
  • The company interfaces with a range of external organizations and public and private partners, most notably to progress crime risk reduction.

Activity on ATMs and Safe Banking:
Theme: Safety of Savings

Facilitator: One of the most important things that you should know about saving is making sure that your savings are safe. You ensure this by using safe banking practices around ATMs.

1. Find out what learners already understand about an ATM. For example, ask learner:

  • Can anyone tell me what an ATM is?
  • Has anyone of you seen a bank card?
  • Can anyone tell me how an ATM works? (You expect the learners to at least tell you that you go to an ATM, insert your card and the ATM dispenses money).

2. Explain to learners that an ATM works just the same as a bank teller inside the bank, only that with an ATM you are interacting with an electronic teller. Explain that the ATM transaction works in the following manner:

  • You insert your card into the ATM card slot
  • You safely key-in you ATM PIN (the PIN is your secret) [PIN – Personal Information Number])
  • You key-in the amount you request
  • Then the ATM dispenses the money

3. Find out from the learners why they think it is important to use safe banking practices when using an ATM (So that you do not lose your savings as a result of crime and your savings can grow)

  • Safe practices when using an ATM
  • Never ask strangers to help with your ATM transaction
  • Never disclose your ATM PIN to anyone (it should be your secret)
  • Always cover the PIN pad with your spare hand when keying in your PIN
  • Never allow anyone to stand too close to when making your ATM transactions
  • Make sure that there is no one watching you when entering in your secret PIN number; shield the ATM keypad with your other hand
  • Never let anyone distract you when making an ATM transaction.

Activity on Safe / Unsafe Scenarios:

Facilitator: Give the learners the ‘SAFE’ and ‘NOT SAFE’ flashcards and explain what each flashcard means. Repeat the explanation. Explain to the learners that you will paint a scenario on a practice around the ATM and ask them if that is a safe banking practice or not. Repeat the instructions.

Scenario 1:

Gogo Khumalo goes to the ATM because it is pension day. Gogo Khumalo wants to withdraw money, but because Gogo cannot see properly, she asks the security guarding the ATM to help her.

Do you think this is a safe banking practice? (Ask the learners to show with their flashcards whether it is ‘SAFE’ or ‘NOT SAFE’). (NOT SAFE)

Where there are dissenting views, ask the learners to explain ‘why?’ Thereafter, provide reinforcement by repeating the correct answer.

Scenario 2:

Baba Zungu goes to the ATM. His cell phone rings immediately after he inserts his bank card. Baba Zungu answers his phone, while at the same time he is keying in his ATM PIN.

Do you think this is a safe banking practice? (Ask the learners to show with their flashcards whether it is ‘SAFE’ or ‘NOT SAFE’). (NOT SAFE)

Facilitator: Conclude by summarizing the key theme of the lesson and ask the learners to repeat after you:

We practice safe banking so that our savings can be SAFE and GROW!

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Did you know?

Here are a few more interesting resources to help you along your journey to becoming financially savvy.

10 Saving Tips

10 Savings Tips:

  • LIVE ECONOMICALLY:
    Do not buy things you do not need and do not try to keep up with friends and neighbours. Everybody’s needs are different so live according to yours.
  • SAVING IS A MINDSET:
    Save money, water, electricity, etc. Do not waste anything of value. Make delayed gratification a norm.
  • START SAVING FROM AN EARLY AGE:
    Learn about budgeting. Earn your pocket money. Learn that making a financial decision is about weighing up the value of one thing against another and choosing which to forego in favour of the other. Differentiating between a NEED and a WANT is the 1st step to a savings mentality and financial freedom.
  • LOOK AFTER THE THINGS YOU HAVE.
    Take pride in what you have worked hard for. Respect your own efforts and feel good about what you have achieved. Lose the entitlement attitude!
  • DO NOT MAKE EXCUSES ABOUT WHY YOU DO NOT SAVE. Saying I am too young or I will save next month or only rich people can save will not get you anywhere. Start by saving the little you can afford to save. “Make sense of cents”
  • START SAVING CONSISTENTLY AND SERIOUSLY FOR YOUR FUTURE YEARS.
    Learn the magic of compound interest. Put aside at least 10% of the money you get monthly.
  • AVOID OWING PEOPLE.
    It is cheaper and more rewarding to wait until you have saved the funds yourself. It is better to spend money you have earned than to spend money you still have to make.
  • SETTLE DEBT as soon as you can. Avoid the debt spiral!
  • SHOP AROUND BEFORE YOU BUY.
    Compare prices and benefits. Do the same with bank products – compare the offerings. Do not ever be afraid to ask questions – knowledge is power.
  • LEARN TO RESIST TEMPTING MEDIA MESSAGES especially about sales. Reward yourself for good money management behaviour!
25 Tips for StarSpellers

25 TIPS for Star Spellers

  • Think in English
  • Read a lot
  • Practise
  • See it, Hear it, Say it
  • Trace, copy and recall
  • Pronounce the words correctly
  • Visualise the words
  • Write frequently
  • Memorise spelling patterns through exposure to different texts such as newspapers, novels, blogs, billboards, flashcards etc.
  • Familiarise with root words (a root is a word or word part from which words grow). Do not confuse prefixes and suffixes.
  • QU rule – the letter ‘q’ is always followed by a ‘u’
  • Know the spelling rules and the exceptions
  • Highlight the hard parts or say the hard part loudly
  • Reverse chain by syllable or letter – say the word, write it and say each letter (be enthusiastic and expressive)
  • The brain acquires spelling through images (Mental Orthographic image)
  • Avoid looking at misspellings
  • Copy spell words at least 10 times
  • Determine the type of learner you are – kinetic/visual/musical/rhythmic etc. Use to practise
  • Keep diary/journal/notebook of words you misspell regularly
  • Personalise your word study
  • First test, then study
  • Form relevant associations
  • “When 2 vowels go walking, the 1st one does the talking’’ e.g. team, coat and wait
  • This may be the best known spelling rule: ‘i’ before ‘e’, except after ‘c’, unless it sounds like ‘ay’ as in neighbour or weigh. IE words – believe, field, relief; CE words – ceiling, deceit, receive; EI words – freight, reign, sleigh. Exceptions:either, foreign, height, leisure, protein and weird
  • Don’t rely on electronic spell checks!

 

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Financial Literacy (FinLit) Spelling Bee

StarSaver™ introduced the 1st ever FinLit Spelling Bee in March 2015. FinLit Spelling Bee is an accessory project of the StarSaver™ programme of The Banking Association South Africa. This is a spelling competition that focuses on financial literacy terms and concepts, drawn mainly from the Economic Management Science (EMS) subject area of the school curriculum for Grade 7 to 9 learners. The FinLit Spelling Bee augments the Department of Basic Education’s Spelling Bee for grades 4 to 6 introduced in 2014.

Why Spelling Bee?

FinLit Spelling Bee is another vehicle to foster learners’ interest in financial literacy while supporting the Department of Basic Education’s priorities for language development.Spelling forms the basis for language development and is a gateway to reading and writing.

The Department of Basic Education’s Integrated National Literacy and Numeracy Strategy:a Whole School approach was implemented in 2012 to build the foundation for improved learner performance. The strategy is underpinned by the Action Plan 2014:Towardsthe Realisation of Schooling 2025 and gives impetus to the sectoral Basic Education Delivery Agreement for Outcome 1:Improved quality of basic education. The strategy is viewed as a strategic driver to improve the quality of education while simultaneously improving the emerging skills and knowledge base of the country.The diagnosis of the 2013 Annual National Assessments (ANA) results indicate that learners are still not doing well in literacy and numeracy thus DoBE 2014 Spelling Bee introduction.

It is hoped,therefore that the DoBE Spelling Bee South Africa and the FinLit Spelling Bee will not only improve literacy levels in schools,but rekindle the culture of reading and long life reading broadly.

The FinLit Spelling Bee rules and procedures are accessible from www.starsaver.co.za

 

 

StarSaver™ Aflatoun Clubs in South Africa

Be a Star by joining the StarSaver™ Aflatoun clubs. Young StarSavers™ get to Explore, Think, Investigate and Act, so that they can say:

I am socially empowered
I am economically empowered

Learning through PLAY!!

StarSaver™ programme has partnered with The Netherlands based Aflatoun that operates in 109 countries. http://www.aflatoun.org/ so club members become part of the global village within their local context. Aflatoun is a child social and financial education organisation that focuses on establishing a solid foundation for the holistic development of children through PLAY from early childhood to adulthood.Aflatoun seeks to harness the early period in a child’s life and give them an educational experience that leaves them with positive associations with money and social change to influence overall development of a child.

StarSaver™Aflatoun clubs provide young people with a platform to enhance their individual development through a holistic and integrated approach to life skills. At the centre of the clubs philosophy is the learnercentred methodology encompassing social and financial education.

The club concept recognises that developing children’s financial capability is important but it must be done within the context of their overall development which is crucial in building a better future and ultimately moulding better citizens in the local context.

Clubs provide the youth with the opportunity not only to learn but to put into practice all the elements they will be learning and in tandem exposing them to global expertise, insights and networks.

The clubs nurture a spirit of belonging, mastery and independence. The six core elements that you learn through the clubs are:

Activity-based club sessions cover aspects of:
⦁ Personal understanding and exploration
⦁ Rights and responsibilities
⦁ Confidence building and motivation
⦁ Financial literacy: “LESSI” – Learn, Earn, Save, Spend, Invest
⦁ Child social and financial enterprise
⦁ Leadership, coaching and mentoring

Learners-Aflatouns and Aflateens join the clubs for personal discovery, to be socially and financially conscientized, make friends, understand democracy and hone their leadership skills.

Aflatot 0 - 5; Aflatoun 6 - 14 and Aflateen 15 – 18

Visit: www.starsaver.co.za

Conclusion
Saving
And
Volunteerism
Empowers

Financial Dignity

Financial Dignity

Financial Dignity is the controlled use of all the money that you accrue to achieve a lifestyle that is of maximum value to you. The typical signs of having attained Financial Dignity are said to be; having manageable mortgage debt, no consumer debt, being able to invest at least 10% of all your income so you have the means to support a fulfilling lifestyle for the rest of your life and spending the rest of your money on a lifestyle that is of value to you.

Financial Dignity is centred on the values of human dignity which encourage one to treat oneself and ones assets, especially money and those of others with dignity, in order to lead a happy fulfilling life.

5 Financial Dignity Principles

  • Every human being has a right to lead a financially dignified life
  • A financially dignified life allows one an opportunity to fulfil one’s potential, which is based on having a human level of health care, education, income and security.
  • Financial Dignity means having the freedom to make sound financial decisions on one’s life and to be met with respect for this right.
  • Financial Dignity should be the basic guiding principle for all our financial actions
  • Ultimately, our own financial dignity is interdependent with the financial dignity of others in the wealth cycle.

Wealth Cycle 

The Wealth Cycle is a concept inspired by saving some of our earned money as the safest way to enjoy a financially healthy and balanced lifestyle because with saved earnings, one is able to spend, donate, invest and live a financially relaxed and dignified life as depicted.

 

StarSaver™ Wealth Cycle is “LESSI”:

The JSE

What is the Johannesburg Stock Exchange (JSE)?

JSE Limited is a proudly South African institution that provides a market place where shares of listed companies can be traded by means of innovative, world class systems and services. It is the engine room of the South African economy and a platform for companies requiring capital to expand their businesses and to meet investors in search of opportunities to grow their investments. JSE efficiently and securely passes on capital raised in the market to users, protecting investors through regulations governing stock broking firms and listed companies. JSE also provides a platform on which previously issued shares are traded i.e. if a shareholder of a listed company wishes to sell his/her shares and wants another person to purchase these shares. JSE not only channels funds into the economy, but it also provides investors with returns on investments in the form of dividends. The exchange successfully fulfills its main function—the raising of primary capital—by rechanneling cash resources into productive economic activity, thus building the economy while enhancing job opportunities and wealth creation.

Did you know? The JSE is the largest stock exchange in Africa and ranks in top 20 largest stock exchanges worldwide.

Basic Investment Concepts

  • A share is a fraction of business that makes you a shareholder in that entity.
  • Share investing is buying a fraction of a listed company through an intermediary of an organised exchange.
  • Exchange Traded Fund is an index that is listed and traded on the stock market.
  • A stock exchange is a place where shares are bought and sold.
  • A dividend is the sum of money paid by a company to its shareholders out of its profits (Is the distribution from the net profits of a company to its shareholders). The dividends are taxed at 15% since 1 April 2012.
  • Volatility is the movement of the share price in the stock market. High volatility is associated with risk, both fundamental and technical.
  • Market capitalisation is the total value of the company. It is the total number of shares multiplied by the price of a share.
  • Bid price is the highest price that any buyer is willing to pay for a share/security at any given time.
  • Offer/asking price is the lowest price at which the seller is willing to accept for a share. The opposite would be a bid.
Mandela Day
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Volunteerism

Volunteerism is a key goal of the programme in fact volunteerism is the lifeblood of the programme. Our volunteers use their professional and personal experience to impart savings lessons to learners. Volunteerism is the principle of donating time and energy for the benefit of others in the community as a social responsibility. Volunteerism benefits both society at large and the individual volunteer by strengthening trust, solidarity and reciprocity among citizens.

We support programmes that encourage volunteerism like Mandela Day and as part of our ‘Programme Integration’, we hope volunteers who participate in Mandela Day can use our programme as their flagship volunteerism programme.

Concept

Nelson Mandela International Day (or Mandela Day) is an annual international day in honour of the iconic Nelson Mandela; it is celebrated annually on 18 July (Mandela’s birthday). The day was officially declared by the United Nations General Assembly in November 2009, with the first UN Mandela Day held on 18 July 2010. However, others celebrated Mandela Day from 18 July 2009.

Mandela Day is not meant as a public holiday, but as a day to honour the values and the legacy of Nelson Mandela through volunteering and community service. Mandela is South Africa’s former and first black President after the apartheid era. He is fondly referred to as ‘Tata Madiba’. Mandela Day is a global call to action that celebrates the noble idea that each individual has the power to transform the world and the ability to make an impact. The Mandela Day aims to inspire individuals to take action to help and change the world for the better and build a global movement for good.

67 minutes of giving

The Mandela Day campaign message is: “Nelson Mandela has fought for social justice for 67 years. We are asking you to start with 67 minutes.” This global call for action to all citizens is made to commit 67 minutes to community volunteerism to progress humanity. The 67 minutes StarSaver™ to teach children to save South Africa lesson being delivered by the volunteer bankers and financial sector professionals is a reflection and alignment to the Mandela Day messaging which is anchored on bringing together people around the world to fight poverty, promote peace and reconciliation. Volunteerism imbibes the spirit of generosity, so we urge everyone to ultimately ”Make Every Day a Mandela Day”

“Education is the most powerful weapon which you can use to change the world.”
- Nelson Mandela

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Leapman and Budget Girl are just a couple of regular SUPERHEROES! Defeating villains through their quick thinking and savvy financial practices. Follow their stories on our social media channels as the take on the bad guys!