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The latest financial trend for SA!
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South Africans are planning to start saving and cut down on their unnecessary spending-this according to an international report released on Monday.
The Iafrica.com business portal took a look at an international report, recently released, in which it was determined that the current trend in SA is a shift towards cutting down on spending and starting to save within the next year.
"South African consumers are bracing themselves for tougher times ahead in 2009," said Jeni Webber, SA manager of MasterCard Worldwide.
According to this report, the trend is not only toward a reduction in spending and unnecessary costs, but South Africans have no plan to make donations to charities anytime soon, this is a worrying fact. More than eighty percent of SA respondents were looking to cut back on their discretionary spending in the next 12 months. This is quoted from the inaugural MasterCard Worldwide Index of Consumer Purchasing Priorities.
In South Africa, 200 respondents in Johannesburg, 200 in Cape Town and 200 in Durban participated. The research found that 97 percent of South Africans and 97 percent of UAE citizens regarded saving as very important or important.
An interesting fact arose, the 50% of South Africans who did not consider saving as a priority said it was because they did not earn enough money to save. To the other half- whom found savings was a critical investment to ones future- concentrated their savings on three main areas namely education for their children, Investments and retirement planning. Here at Justmoney.co.za we urge you to start your retirement planning sooner rather than later as it is never too late to start.
A further analysis of the study showed that 47% of South African respondents would most likely cut back in their recreational spending. This would include spending on items of fashion and accessories, cars, entertainment, fitness workshops and so forth. The rest (54%) would not cut back at all. The lack of charity donations within SA was apparent too as we wereone of the higest on the international list for this problem.
The survey continued, to show that South African women were less likely to save than men. Those that considered saving as a high priority were below 30 or above 56 years of age. Reasons may vary but it is considered that one starts to save when the future is uncertain, and there is a risk for money shortages. For example at age 30 or below one stars to save for their family, potential house, and education for their future children However once reaching the mid 30-40s one is more settled with day to day cost and more financial responsibility is attained in terms of bonds, cars and so forth. By the age of 56-60 one concentrates on their retirement planning for the future.
South Africans are looking toward a tougher financial environment in 2009 as the economy is increasingly unstable. It is a relief to know that saving accounts are becoming a priority and people are making way for their future requirements today.