Why South Africans Don't Save

Lack of willpower and commitment is the downfall of consumers

- Phakamani Mvelashe

SOUTH Africa is unquestionably one of the worst saving countries in the world. The poor culture of saving can be attributed to a number of factors such as the high cost of living, unemployment and inflation. However, South African Saving Institute chairperson, Prem Govender, says many South Africans are struggling to save not only due to income challenges, but also the lack of willpower and commitment.

LIVING BEYOND THEIR MEANS

Many people feel that they have nothing to save as their income can hardly cover their expenses.

According to the Savings Institute, some of the reasons for a low savings rate are easily identifiable. Unemployment is over 25 percent, and if you are unemployed you cannot save.

In addition, many families spend large amounts on private-sector education and health care, leaving very little to save.