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Week no
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Date
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Topic
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Sub -topics and rationale
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Week one
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14 May
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Budgeting
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· Needs & wants - readjusting budgets in the light of COVID -19 – reconsider carefully what our needs and wants are
· Budgeting in light of reduced incomes for some – we are required to either find alternative sources of income or cut down spending one way to cut down is to understand fixed expenses and changing expenses
· Caution on spending and usage- Whilst we are now spending more on food, electricity, data and water we still need to be cautious, control and reduce our usage where we can.
· Save where you can – we are not spending money on transport, salon visits, eating out/ take-aways and entertainment – if possible put money you would have spent on these items, into savings.
· Communicating with family – as households with limited income and changing circumstances, it is critical to have frank conversations about what adjustments need to be made. We may also be called to assist within the extend families, again communication will be very critical
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Week two
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21 May
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Managing Debt repayments
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At this time some of us might not be receiving an income or maybe receiving a reduced income and not able to repay all our debt obligations. This episode looks at what options are available for those experiencing difficulties and what each of the options means.
· Option one – Restructuring repayments – also called taking a debt holiday -meaning we are not paying instalments for three months or so. What does this mean? What would it mean on the interest on instalments and service fees over these three months? Who qualifies for this option and how do I apply?
· Option two – Cashflow relief loans – what does it mean, what happens at the end of the three-month period, do I pay both my existing loans and the cash relief loan?
· Option three – Claiming on your credit life insurance – how does it work? And how do I claim?
· The importance of talking to your credit provider – all the options are not available automatically, it is important to contact your credit provider and indicate if you are experiencing difficulties.
· For those still receiving an income – the importance of continuing with repayments, the repo rate cut on 20 March and 14 April means a reduced interest rate, It is advisable that you continue paying and if possible keep your instalments the same so that you pay off debt faster.
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Week three
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28 May
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Saving for Emergencies
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The current COVID crisis has reminded us of how important emergency savings are. For some there was reduced income, others were still receiving an income and this time was an ideal time to relook budgets and assess what is really essential, learn do-it-yourself skills that can carry on and reduce spending on certain areas. Experts advise that you should saves up about three times your monthly salary. This episode links back to budgeting and will focus on the following:
· How do emergency savings help me – e.g. in a time of a crisis, it is important as a buffer especially for people who may have contract or irregular work, even when receiving money from relief programmes it acts as a buffer whilst we wait for the relief funds, it helps in times of medical emergencies, even when one has a medical aid there maybe a shortfall of certain costs not covered, in times where unexpected repairs are required in the house, for a phone, car etc. it helps you not to be forced to borrow in an event of an emergency.
· How can I start saving for emergencies?
· Where do I save this money where I can have it accessible, but still be disciplined not to touch it?
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Week four
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04 June
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Saving and Investing for the future
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This episode will coincide with the social media focus on investing for the future
Investing in the future – why it is important for young people to start saving as soon as they start working
· Why is it important for young people to start saving even for retirement from a young age?
· What are some of the ways to save for the short, medium and long term?
· How does compound interest affect you when saving and investing?
· How does inflation affect you when saving and investing?
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Week five
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11 June
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Investing in the times of uncertainty
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During this time of the COVID-19 crisis, and the recession, consumers may be concerned about their investments given that the economy is volatile, stock markets very volatile and shares of different companies listed on the JSE are falling in some cases by more than 88%. It is important to encourage consumers not to act in a panic and emphasize the importance of consulting financial planners. The episode will look at the following topics:
· Why it is important to stick to your plan
· The importance of contacting your financial adviser – don’t act in a panic.
· What is meant by a diverse portfolio – “don’t put all your eggs in one basket “saying? What are some of the different products you can invest in and how the diversity benefits you in times of crisis?
· How to identify and avoid scams linked to COVID 19 - investment opportunities promising high returns and only open for a limited period of time.
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Week six
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18 June
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Retirement Planning
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This episode links bank to the episode on the 4th of June and looks more specifically on investing or saving for retirement and why this is important
· Different ways you can save for retirement – pension funds, provident funds and retirement annuities
· What happens when I change jobs? – the importance of preservation
· How much should I be saving for retirement?
· Why I need to choose my beneficiaries carefully and update them when circumstances change?
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Week seven
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25 June
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Credit – do’s and don’ts
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While it is important to save and invest, for young people starting out in the job market, taking up credit irresponsibly can hamper their ability to save and affect them negatively in their future financial lives. The episode will discuss the following;
· Good vis bad credit – taking credit for something that will gain value and help us in the future e.g. a study loan or a buying a house which will likely gain value
· Affordability – prior to taking credit check if you really need it, then shop around and see what interest rates various lenders are offering you
· Check the total price you will pay including interest and service fees over the duration of your loan or credit term
· Maintain a good credit profile- Managing repayments responsibly and contact your lenders immediately if you are not able to pay,
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Week eight
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02 July
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The importance of Saving
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Linking to savings month- This episode emphasizes the importance of saving and links back to week 3 and 4.
· Why saving for emergencies is important?
· Why it is important to save for a goal?
· How can one get into the habit of saving even when we are earning a little?
· How can we maximise the benefit we get in terms of interest when we save?
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