A research conducted this year by South Africa’s First National Bank (FNB) shows that among the people who start saving money before they turn 30, 78% were taught and encouraged to do so by their parents.
The Sanlam Benchmark Survey 2013 also suggests that 56% of employed South Africans start to save at the age of 28. This is an alarming statistic given that the recommended age to secure a nest egg and comfortable retirement is 23 years, the bank said.
“Various factors influence and impact on the ability of an individual to save. Fear of retirement and the ability to pay for children’s education impact individuals over 30,” FNB Investment Products CEO Lezanne Human said today in a statement.
Human urged parents to teach their children the culture of saving at early age.
“Parents across the income spectrum save for their children and are responsible in doing so.
“However by not directly teaching children to save, they inadvertently do not foster the right savings habits in their children,” Human said.
To assist parents in this task, FNB said it has launched a fee-free savings account aimed to be a hands-on savings tool for parents with children 5-12 years of age.
The MyFirstSavings Account gives parents a powerful tool that will allow them to facilitate the process of depositing and withdrawing savings with their kids, making the concepts such as savings goals and delayed gratification tangible, the bank said.
“Savings month aims to bring about a savings mindset that will serve as a foundation for year-round savings,” Human said.
“We encourage a more responsible savings culture among South Africans, and we hope that parents will take the lead on this.”