John Manyike : 24 November Old Mutual Financial Education

Transcription

1 John Manyike : 24 November 2011 Old Mutual Financial Education

2 Our Vision & purpose To be the leading provider of primary financial solutions in South Africa We exist to make a positive difference to the lives of our clients because we care about them and our country We help bridge the gap between the resources of our clients and their financial services needs Set people on the path to greatness Page 2

3 We buy things we don t want to impress people we don t like with money we don t have!!!

4 South African landscape 75% of disposable income goes to servicing debt (Debt to income ratio). 4.2 million consumers sit with judgments or listings on credit bureaus Over two million consumers have Emolument Attachment Orders (Garnishee Orders) attracting monthly installments of R1,bn cars and houses are being repossessed monthly High levels of indebtedness hinders workers from saving Lack of a Savings Culture Source: Old Mutual Savings Monitor National Credit Regulator Page 4

5 Breaking Old Habits

6 Symptoms of Financial Stress Absenteeism & Presenteeism Unnecessary Overtime Low productivity High levels of employee turnover (Resignations): Low Staff morale Fraud & Theft Workplace Accidents Page 6

7 SOLUTION

8 On the Money Financial Behaviour Workshops OMSA Financial education department accredited by INSETA OTM programme is Accredited by BANKSETA NQF Level 1 & 3 (Accreditation number ) SAQA ID 15092: Plan and Manage Personal Finances Full-day workshop On the Money Lite half day workshop (Flexible, Can be customized) Available in 9 languages Workshops include group discussions, video clips and workbook Salaried facilitators

9 Old Mutual s Financial Education Objectives Improve the economic prospects of ordinary South Africans Educate the wider South African population on responsible financial behavior and to enable them to make informed decisions. Provide South Africans with knowledge and tools around money management Help the nation break the cycle of generational poverty Help get South Africans out of the debt trap

10 OVERVIEW OF THE PROGRAMME THE BIG FIVE SECRETS OF MONEY MANAGAMENT

11 Overview: The Big 5 Secrets of money management The Secret of the Lion The male lion eats first ahead of the pack. What does this mean? Achieving financial freedom will require that you diligently save regularly by paying yourself first i.e. ahead of debt and any other spend The Secret of the Buffalo The mighty buffalo grows its herd and diligently protects all the members Of its family by finding strength in numbers What does this mean? Patience is virtue in wealth creation! It s not about timing the market, but the time your investment spends in the market that assures real Growth. Allow your savings to grow steadily by earning interest over Time. The Secret of the Leopard The leopard never lets its prey out of its sight, patiently planning and Moving towards its goal, never backing off, and staying focused. What does this mean? We need to have a clear financial vision followed by a detailed plan with Regards to the incremental steps required to edge us closer to our end- Goal, so that we can achieve our dreams.

12 Overview: The Big 5 Secrets of money management The Secret of the Rhino The rhino s secret is to charge when confronted by danger. When threatened, it works out what its biggest threats are and charges it down, taking swift control of the situation. What does this mean? Debt is our biggest enemy financially speaking. Hence, we need to systematically identify those debt items that attract the highest interest charges, and eliminate them so we can plan better for the golden years. The Secret of the Elephant You know the saying, The elephant never forgets. Its knowledge, aided by its memory, is its power. What does this mean? In order not to forget, we as human beings, need to write things down. The budget records each and every financial transaction we encounter daily, thus ensuring that we learn what we earn, know what we owe and fully comprehend what we spend.

13 The benefits of On the Money Programme to Unions Benefits Empower members with money management skills to enable them to make informed financial decisions Support the Union to help fight the frontiers of poverty Demonstration of thought leadership Association with a good cause Position the Union as a progressive Union On the Money Certificates Facilitation of debt consolidation and Debt Counselling in line with NCA.

14 Benefits The On the Money Proposition to Employers Take advantage of the window of opportunity to empower employees at no cost Charge down the rate of garnishee orders Reduce the rate of absenteeism/ presenteeism Mitigate the risk of Fraud & theft Centralized reporting and stats Certificate of attendance Integrate OTM offering to the companies wellness programme Incorporate OTM programme to the company s training strategy & plan : skills development levy - WSP & ATR

15 Old Mutual and Soul city has formed a partnership Soul City has integrated Old Mutual s financial literacy theme & story line in their next series starting on the 18 th October 2011 Old Mutual developed content in partnership with Soul City - using OTM booklet, DVDs & independent research Old Mutual can communicate responsible financial behavior & positively influence financial habits and behaviors on this platform reaching an audience of over 23 million people in S.A Copyright thewinwingroup

16 Soul City is one of SA s most popular & universally loved local television series (now in its 11 th year) Educational drama edutainment - health & life skills - high audience approval and credibility characters are icons Supported by integrated mass media programme including radio, print booklets and outreach activities. Copyright thewinwingroup