Cape Town – Financial literacy education is very dear to me to an extent that I lead a team of volunteers at University that solely focuses on teaching high scholars about money and debt management and saving. The minister of finance, Pravin Gordhan announced in his 2012 budget speech that those who save will get a form of a tax break.
At this stage I am not at liberty of analyzing his speech, but he said many things that are heart warming, and not so heart-warming to smokers, drinkers and gamblers.Personally, I welcome his speech.
What I found profound is the following statement:
To encourage voluntary savings, consideration is being given to the introduction of tax-exempt short and medium-term savings products. The proposal is that individuals should be permitted to save up to R30 000 a year, with a lifetime limit of R500 000, in registered savings or investment products that would be free of tax on interest, dividends or capital gains.
In retrospect the minister is encouraging wealth creation and saving amongst South Africa citizens.
Be financially savvy!