Savings Flashcards
List six reasons why people might save.
To buy expensive items in the future. For a holiday or outing. For children's education. For unforeseen expenses. To make more money (interest). To put money into pension or retirement schemes.
What is a bank.
A bank is an institution that acts as the middleman between people who want to save or keep their money safe and people who want to borrow money. These are referred to as commercial banks.
What are the top four banks in South Africa?
Absa Bank
Standard Bank
First National Bank
Nedbank
Name five services offered by banks.
ATM (24 hrs 7 days a week access to money)
Internet banking
Financial advice
Foreign exchange ( foreign currency for when you travel overseas or import from overseas)
Credit and debit card facilities.
What do you need to open a bank account?
Your birth certificate
A bank statement or municipal bill proving your physical address.
For 8 marks, discuss community saving schemes.
These are also known as Stokvels.
They were started out by low income earners.
Some higher income earners also now use Stokvels for larger expenses, like a birth or special parties/celebration.
They are joined by a group of people who agree to achieve a common or similar goal.
Usually they are from the same community, church or family.
They agree to put in an amount of money into a fund regularly (once a week, or once a month, or once a year).
They appoint someone in the group to look after the money: to open a bank account or to keep it in their home.
They either share the money out at the end of the year, or take it out for some key event or purchase something they have decided to get together.
Some Stokvels give all the income each month to one of the members on a rotational basis.
What do we mean by “savings”?
It is the money you keep for emergencies or future use.
On a blank piece of paper, Create a statement of nett worth for Mr and Mrs Meyer for the month of October, using the following information:
Mrs Meyers’ salary R25 000; Mr Meyer’s salary R50 000; car installments R2200; rental to pay on house R7000; food R4000; entertainment R1600; school fees R2000; music fees R400; extra mural activity R350; water and electricity R1800; rental income R4500; pet expenses R400; medical aid R1900; wifi R400; clothing R2000.
INCOME mrs M salary R25000 Mr M salary R50000 Rental income. R4500 TOTAL INCOME. R79500
EXPENSES Rental on house R7000 Car payment. R2200 Entertainment. R1600 School fees. R2000 Music fees. R400 Extramurals. R350 Water and electricity R1800 Pet expenses. R400 Medical aid. R1900 Wifi. R400 Clothes. R2000 Food. R4000 TOTAL R24 050
Net profit for October will be R79 500 - R24 050 = R55 450
