Sanlam has teamed up with skills training provider Avocado Vision in an attempt to empower communities countrywide with basic financial skills and insight to enable them to make better financial choices and encourage savings.
The pilot project of the 'Money fo Sho' financial education programme aims to reach around 15,000 people in six provinces by mid-2014.
"We care for the communities in which we do business and our aim is for all South Africans to understand the importance of money and how to use it effectively. Consumer education is an important pillar of our corporate social investment initiatives, and this project will go a long way towards helping improve financial literacy in all sectors of our society," says Tendani Matshisevhe, Marketing Manager of Sanlam Sky Solutions.
Matshisevhe says high levels of poverty and low levels of education in the communities in which the project is being piloted have contributed to their vulnerability to exploitation and high debt levels. "These communities are often faced with difficult personal circumstances. Other challenges include predatory lending, pyramid schemes and financial scams, and limited knowledge of basic financial tools. Our aim is to enable learners to protect themselves against these types of financial pitfalls, and this requires adequate financial skills and knowledge."
The project involves the training of 30 peer trainers recruited from communities in the Western Cape, Eastern Cape, KwaZulu-Natal, Gauteng, Limpopo and the North West. The trainers recruit their own learners and get rewarded for their efforts, so that they in turn can grow their own small businesses. The 30 trainers are now recruiting and training learners from schools, churches, enterprises, community and political organisations and NGOs. They have also recruited caterers and learner recruiters in some instances.
To make it as accessible as possible, training is free of charge, offered in the local language, and interactive and experiential. It takes place at any suitable venue - under a tree, in a church hall or any other community venue. The sessions focus on managing money, managing risk, and managing credit. Topics include budgeting, tips on starting your own business, life insurance, funeral policies, wills, endowments, retirement savings, and the risks, rights and obligations of credit and associated costs.
"We want anyone older than 15 keen to improve their financial skills, to be able to attend the six-hour training sessions. We are hoping it will have a ripple effect in that learners will in turn teach their families about the importance of managing their money," says Matshisevhe.
At the same time, the project aims to create jobs through embedded trainers growing their own micro-enterprise training companies, and community members starting their own catering businesses.
"By informing and empowering people with the skills and knowledge about their finances, we hope to make a small difference in people's day-to-day experiences with money. Ultimately, we hope this will contribute towards building a nation of savers instead of a nation of spenders," Matshisevhe concludes.
