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

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

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)

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!