Who should budget
Low income earners are mostly affected by failure to budget and are therefore likely to remain in cyclical debt. Micro Finance Unit Research and Information Officer Phumzile NhlekoMtetwa said everyone should budget in order to allocate their money accordingly, both young and old. “Once you have any form of income, you should know how to budget.”
She called for parents to enable their children to break the cycle of poverty by teaching them how to budget and thus save a portion of whatever amount they receive.
“If children are taught to save a portion of the little money they get and then get to use the money reasonably later on, they will be encouraged to
always save, even later on in life,” NhlekoMtetwa said, adding how this can be further encouraged by parents doubling their savings through matching the amounts later when the money is tallied.“Business people can claim they do not have anything to save, but this is not true because if they could quan-
tify their earnings after a period of three months against their expenses, they could find that there could be money to spend.” Adding, she said it called for discipline where a business owner would earn a set salary and then save whatever was left over profit instead of consuming it.