Learn to manage your money – and you could win R10 000! Don't become one of the statistics! On average, 150 000 judgments are handed down each month against individuals who are financially overcommitted. According to research, more than 50% of all South Africans are compulsive shoppers. Their need to spend is fuelled by easy access to credit, changing priorities and new products and services. They have one thing in common with addicted gamblers: they cannot control their impulses. It is a disconcerting fact that the average person spends a staggering 44% of his/her monthly income on servicing debt – i.e. to pay credit cards, housing loans, motor vehicles, hire-purchases, personal loans and in-store accounts – while the accepted international limit is 35%. What is perhaps even more alarming is that most individuals don't save enough or at all for their retirement, because only 19% of income is spent on short-term insurance, life assurance, and healthcare and saving for their old age. In the recent past UASA introduced members to the programme and services of Money Sense, offered free of charge because of a generous sponsorship. Since then, Money Sense had 19 180 interactions with UASA members based in Gauteng until the end of September 2006. These interactions include personal Money Sense assessments, e-mail and call-centre interactions, pamphlets, the Money Sense newsletter and the distribution of the Money Sense Toolkit to members with e-mail. Simply visit www.moneysense.co.za or open the attachment to this communication. Complete the “Input” and send it to Money Sense. To entice you to make use of this programme for your own benefit, each member who do their individual Money Sense reports from now until the 12th December 2006 will stand a chance of winning a R10 000 cash prize from Money Sense! This competition has just been announced in the newsletter submitted to members during the first week of October. More details about the competition are also available on the Money Sense website. We thought that you might be interested in the contents of the first report received from Money Sense regarding spending and other patterns of our UASA family of members: FINANCIAL LIFESTYLE One of the purposes of Money Sense is to assist individuals to improve their budget, irrespective of their financial position. This is achieved by identifying the areas where the employee could improve his or her financial lifestyle by either spending more or less in a budget category. Financial lifestyle is the way an individual or household selects to spend his, her or their money over the short and long term. Each individual needs to make financial lifestyle choices. Different issues are important to different people. However, it is important that the financial lifestyle of an individual is in sync with his or her monthly income. Each person (or household) has different financial priorities and this is influenced by the financial lifestyle choices that are made. There are normally ten systems of cost within each household. These are: • Housing • Food • Clothing • Transportation • Recreation and entertainment • Education • Health and personal care • Saving and security • Debt servicing • Addictive behaviours Spending on the above systems of cost must be in balance with monthly income. It is normally the imbalance caused by spending too much or too little on each item that creates financial stress. CLASSIFICATION OF BUDGET ITEMS HOUSEHOLD EXPENSES – Domestic: Domestic & garden workers, Garden Service. – Groceries: Food, meat, bread, milk, vegetables, fruit, toiletries, pet food, stationery, stamps, baby diapers and food. – Water & Electricity: Monthly and/or pre-paid water and electricity. – Telephone: Monthly and/or pre-paid phones in household (Telkom & cellphones), internet. – Security: Security company, protection, NetStar, Tracker – Entertainment: Sports, hobbies, social clubs, gym, magazines, paper, TV, DStv, M-Net, TV rental, cinemas, dining out, liquor, cigarettes, Lotto, gambling. – Petrol/Travel: Petrol, vehicle service & maintenance, train, bus, taxi, parking. – Rates & Taxes: Monthly Municipal Rates and Taxes, Body Corporate Levies. – School Fees: Monthly school fees, boarding fees, crèche, higher education costs. – Family Expenses: Church, charity, pocket money, maintenance, hairdresser, dry cleaning, chemist (non-medical), vet, household maintenance & repairs, pool, gifts, banking costs. – Other: Any other regular monthly cost not included above. FINANCIAL SERVICES – Assurance: Monthly Life & Endowment, Funeral Policy. – Insurance: Monthly Short-Term Insurance – houshold contents, vehicle(s). – Medical Aid: Monthly Medical Aid subscriptions, medical cost (not covered by medical aid), medical insurance, hospital plan. – Pension & Risk Benefits: Monthly Pension Fund contributions, Retirement Annuities. – Other: Monthly Educational Policy, educational savings, regular bank savings, Unit Trusts. DEBT REPAYMENTS – Credit Card: Monthly amount due on all credit cards. – Bond: Monthly bond, rent, lodging payments. – Car Repayments: Monthly car and/or other vehicle repayments. – HP/Lease: Monthly furniture and/or appliances repayments. – In-Store Accounts: Monthly amount due for clothing or other goods. – Other: Any regular debt repayment not mentioned above, such as loans from friends or family or work. MONEY SENSE STATISTICS Group: UASA Number of Interactions: 19180 CLIENT STATISTICS BY AGE: Age Range: Percentage: 18 to 24 8.33 25 to 34 58.33 35 to 49 16.67 50 to 60 16.67 61 and greater 0.00 TOTAL 100.00 CLIENT STATISTICS BY GENDER Male: 25.00% Female: 75.00% EXISTING BUDGET PLAN STATISTICS Status: Percentage: Single Under 30 21.43% Single Over 30: 1 Child 28.57% Married Under 30: No Children 7.14% Married Over 30: No Children 7.14% Married Over 30: 1 Child 7.14% Married 0ver 30: 2 Or More Children 28.57% Average Income 9,431 CLIENT STATISTICS BY INCOME Income Bracket Percentage 0 to 2,427 0.00% 2,428 to 4,075 21.43% 4,076 to 6,455 21.43% 6,456 to 11,566 21.43% 11,567 to 18,649 28.57% 18,650 and greater 7.14% MONEY SENSE STATISTICS EXPENDITURE Household total % of income 39.35% Financial % of income 15.8% Debt % of income 34.01% Total % of income 89.16% Comments: Where the total expenditure exceeds 100% it means that employees on average spend more than they earn. Where the total expenditure is less than 100% it means that on average employees have a cash surplus on a monthly basis (based on input provided by employees). AVERAGES ON BUDGET ITEMS HOUSEHOLD EXPENSES Rand AVG % Of AVG Number % of Users Budget Item (Note 1) (Note 2) (Note 4) Domestic 342.56 3.56% 64.29% Groceries 2,069.23 23.21% 92.86% Water and Electricity 635.71 5.97% 50.00% Telephone 285.00 3.29% 85.71% Security 0.00 0.00% 0.00% Entertainment 394.17 3.73% 85.71% Going Out 300.00 2.79% 50.00% Sports 300.00 2.07% 7.14% Own Entertainment 121.43 1.17% 50.00% Gambling 55.00 0.60% 28.57% Other 152.00 1.93% 35.71% Petrol 737.14 7.82% 100.00% Rates And Taxes 275.00 2.86% 28.57% School Fees 607.00 4.99% 35.71% Family Expenses 550.00 9.12% 57.14% Other 400.00 3.13% 14.29% FINANCIAL SERVICES Assurance 338.38 2.70% 57.14% Insurance 693.67 4.73% 42.86% Medical Aid 930.11 7.95% 64.29% Pension And Benefits 662.67 6.73% 85.71% Other 600.00 7.20% 21.43% DEBT Credit Card 1,261.43 15.23% 50.00% Bond 2,991.33 19.65% 35.71% Car Finance 1,910.00 16.17% 28.57% Hire-Purchase 0.00 0.00% 0.00% In-store Accounts 461.11 4.93% 64.29% Other 991.00 12.43% 78.57% Note 1: Average rand amount of members who spent money in category. Note 2: Percentage of average salary of members who spent money in particular category. Note 3: Number of members who spent money in this category. Note 4: Percentage of members who spent money in this category. GENERAL COMMENTS The following comments can be made on assessments to date: National norms on Money Sense: National Norm Ave Exp Note 1 Note 2 Percentage of income Average Rand expenditure Household expenditure 33.02% Domestic 3.99% 555.88 Groceries 11.17% 1,282.77 Water & Lights 3.71% 452.98 Telephone 3.38% 402.27 Security 1.38% 242.00 Entertainment 5.44% 635.80 Going Out 2.64% 482.44 Sports 1.55% 350.96 Own Entertainment 1.73% 298.95 Gambling 0.44% 84.20 Other 0.99% 174.54 Petrol and travel 6.10% 690.07 Rates and Taxes 2.98% 424.02 School Fees 6.32% 755.35 Family Expenses 5.52% 676.10 Other 7.40% 836.86 Financial Service 18.97% Assurance 5.10% 593.49 Insurance 4.52% 562.15 Medical Aid 8.61% 978.54 Pension 9.29% 1,028.76 Other 5.21% 627.10 Debt Repayments 44.02% Credit Card 12.61% 1,478.58 Bond or Rent 23.95% 3,032.55 Car Finance 16.79% 2,257.31 HP and Leases 6.45% 691.17 In-Store Accounts 6.70% 703.42 Other Debt Repayments (Loans) 18.76% 1,802.43 Note 1: National average represents the average percentage of member income where amount spent per item exceeds zero. Note 2: National norm represents the average amount spent per item where spending on the item exceeds zero. Requests for assistance during the month included the following topics: • How do I invest money? • What is best – fixed or variable rate? • What process to follow when you want to invest money? • Is this a Scam? • When should I replace my vehicle? • Information on Money Market accounts. • Impact of CGT when I sell my house? • Should I use my bond to consolidate my debt? • Information on unknown Service Providers. Can I use them? • Information on Credit Bureaux and how they work. • How can I improve my credit rating? • How to apply for a credit card? • Should I accept all the credit cards offered to me? • Assistance with debt restructuring. • Calculate repayments. Can I afford this? • How to manage a Garnishee Order? Feel free to use the programme. There are no strings attached. All personal information is treated as absolutely confidential. The sole purpose of the programme is to assist you with your personal finances. Client quote of the month: I did not know what to expect from Money Sense but I must say the Toolkit is great and my personal report helped me to sort out my personal finances. The practical tips are fantastic. Also the fact that you don't sell a product is just great. Thanks a lot Money Sense!
Pages to are hidden for
"Learn to manage your money and you could win Don"Please download to view full document