There is but a trickle of the celebratory mood of the New Year still lingering among consumers. By February most people are already completely stressed out again, about back to school, back to work and back to facing the reality of how little is left in their savings account.
Among those who will be hit hard this year are parents of school leavers and graduates who have to find jobs and will be relying on mom and dad’s support until they do. These families will need to look at good money saving strategies.
African Bank said tough times call for tough measures and families in this position need to buckle down to cost-cutting and saving money, preferably in an account that will yield the best bank savings interest rate.
They provided three tips that can help families make it through the month and meet financial goals:
• Have a family meeting
To meet financial goals means everyone in the household must be on board. Do not hide financial realities from your children or other people you may be supporting. If you are seen to be financially well off but are in reality raking up massive credit card accounts you can’t afford to pay back, things can end in disaster for the entire family.
• Start budgeting
Budgeting is easy and it can teach your family good money habits. The five principles of an effective budget are: Understand your finances, calculate what you need to put aside for each expense, make sure your income is greater than your expenses, implement a system to track your expenses and have the money to cover your budget.
• Save, save, save
Set goals and go for it. Whether it is rewriting a matric subject or affording to live in res at university, putting a little bit away each month can help you realise your dreams. Remember to look for a savings account which offers the best bank savings interest rate.
