“ Stepping Up and Taking Charge of MY Finances and Celebrating Women’s Financial Capability”

1. “Stepping Up and Taking Charge of MY Finances and Celebrating Women’s Financial Capability” Presentation by Mvelenhle Yaka Socio-Economic Growth & Development The Banking Association South Africa Isolezwe Intandokazi Forum Gateway Hotel, Umhlanga, Durban 23 March 2012

2. SA SNAPSHOT • South Africa population 52m – 52% women, 60% youth and 30% below 30 years of age • Key challenges: unemployment, poverty and inequality • Emerging economy with dichotomy of 1st and 2nd World Economy. Financial inclusion at 73% (67% banked). Rated 2nd in soundness of bankingsystem. 1st in regulation of securities exchange. 2nd in availability of financial services. • Low literacy levels and high unemployment at 25%. Unequal society. • 67% of adult South Africans do not save. • 75% of disposable household income is debt. Avoid debt spiral! • 19.6m credit active consumers. 47% with impaired records • Generally a society characterised by instant gratification & materialism • Gazetted Financial Sector Code – transformation framework of the sector

3. The Banking Association SA • The Banking Association South Africa is the industry body representing all registered banks in SA – current membership of 34 banks • Active member of the KZN Financial Literacy Association championed by the MEC for Finance • Financial Literacy core platform for financial inclusion • Financial Literacy and Consumer Financial Education • Facilitating ACCESS to financial services – Mzansi, Nearest Equivalent Accounts (NEAs) - ‘banking the unbanked’, inclusive banking, demystifying banking and entry-level banking • Financial Inclusion: Access and Usage by consumers (demand-side) and promotion and expansion of financial products/services (supply-side) • Enterprise Development and Development Micro-Finance • Cooperative Financial Institutions and Cooperative Banks “Never spend your money before you have it” (Thomas Jefferson)

4. Women an Economic Force… • Women are a force of inclusive economic growth • Women re-invest more than 90% of their income in family and community • Control resources of the household - household stability • Single biggest and least acknowledged force for economic growth • Strong correlation between financial performance and women in leadership roles • Women’s general attitudes & behaviour towards money matters – confidence, knowledge and decision-making • Females ‘de facto’ financial advisors entrusted by family/friends/colleagues • Men have power. Women have influence & SOFT power - ability to attract & co-opt rather than coerce, use force/give money as a means of persuasion!

5. Visa Survey on Women & Money (Sept. 2012) • 10% of women have a secret bank account that their partner is not aware ; that “dirty little secret” has on average R17,681! • 30% of women are willing to spend more than 6 months salary on their wedding!!! • 1 in 2 women have a credit card • Parents place high value on education of their kids – 94% say that this is more important than leaving them an inheritance • 71% women have a bank account • 13% of women have savings in stokvels • 54% of women prefer to invest in property – but 51% of women did not know interest rate on home loan • Winning at money is 80% behaviour & 20% head knowledge. Most of us know what to do but we just don't do it. (Dave Ramsey)

6. BEHAVIOURAL CHANGE • Finlit about behavioural change it is therefore about timeous, appropriate and relevant interventions at different phases of the lifecycle.“Teachable Moments”. • Financial Literacy provides platform for financial prosperity and well-being through confidence-building and knowledge. • FinLit Continuum: broad exposure moderate intensity very personal • Financial literacy is a collective responsibility – CPPPs • To achieve behavioural change - Inform and educate, ensure understanding, relevance and appropriateness • Recognise that financial behaviours are FLUID, ever changing, influenced by both internal & external factors. Understand CONTEXT of peoples’ lives. FinScope 2012 – 67% banked SA population, 6% formal other (non-bank products), 8% informally served & 19% not served. 69% of Women banked.

7. Money Smart Kids • Teach Children to Save South Africa™ (TCTS SA™) a generic financial literacy programme to inculcate a culture of saving in children & promote volunteerism introduced in 2008 • Volunteerbankers and financial sector professionals nationwide teach and inspire learners in schools to be lifelong savers • Motto: “Ligotshwa limanzi” • Children are agents of change – make them “money smart” • 17 banks and 31 financial institutions – outreach • 500,000 learners in over 2,000 schools • Have ‘relationship’ with money – teach kids value of money • Instant gratification & crass materialism (e.g. Izikhothana) – societal and peer pressure to guard against

8. ETHOS… • The world is like a mirror, if you face it smiling, it smiles right back! • The rich buy assets. The poor only have expenses. The middle class buys liabilities they think are assets. The poor and the middle class work for money. The rich have money work for them. (Robert Kiyosaki) • You must trust yourself more than you trust anyone else with your money. (Suze Orman) • Money is one form of power. But what is more powerful is financial education. Money comes and goes, but if you have the education about how money works, you gain power over it and can begin building wealth. The reason positive thinking alone does not work is because most people went to school and never learned how money works, so they spend their lives working for money. (Robert Kiyosaki) Money does not grow on trees, but banks have branches. ----------------------------------

9. WEALTH CYCLE 6 FACTORS to make financial education effective: • Quality and frequency of the education • Relevance of education to the target population • Opportunity to use this education • Context in which people exercise their financial behaviours • Appropriateness of financial education products on offer • Collaboration and Partnerships

10. BREAKTHROUGH ATTITUDE… • Be an optimist and realist at the same time • Be lifetime learners • Money and education – pathway to independence • Ask yourself what is the worst thing that can happen? • Learn from your mistakes and setbacks • Be singularly focused on the agenda but also be willing to let it go • Mental leap of faith necessary • Reach out to mentors and allies • It’s not personal, it is business! • Focus on the journey not the destination • The rich buy assets. The poor only have expenses. The middle class buys liabilities they think are assets. The poor and the middle class work for money. The rich have money work for them. (Robert Kiyosaki)

11. BELT TIGHTENING • Need vs. Want • Delayed/deferred gratification • Budget and draw up savings plan • Prioritise paying off debt with highest interest rate • Good vs. bad debt • Debt counseling if in a debt spiral • Banking Ombudsman – for bank-related complaints • Do not leave beyond your means. Save for a better future! • To be centred not just emotionally, but also intellectually, socially and physically (Centred Leadership). Listen to the inner voice. Meaning is a precursor to success. Purpose is what drives you. Have a strong sense of optimism. Women are hardwired to ruminate – spend hours on end going over what went wrong, thus postponing/preventing a meaningful response.

12. STEPS TO FINANCIAL FREEDOM Action Change of mind Equipping

13. REALITY!!!!