This group of students attended the fourth day of the five-day workshops this week, during Global Money Week from 16 to 20 March. It formed part of the First-Year Experience Programme (FYEP) to help shape students’ behaviour regarding money management. Image: Harriet Box / UWC

The University of the Western Cape (UWC) has launched a financial literacy programme for first-year students to help them manage their money. The five-day workshops, during Global Money Week from 16 to 20 March, formed part of the First-Year Experience Programme (FYEP) to help shape students’ behaviour with money. 

The programme was initiated by the Centre for Entrepreneurship and Innovation (CEI) and developed to help, especially first-year but also second-year students, manage grant and bursary pay-outs and monthly allowances more effectively.

The programme, in collaboration with the UWC Financial Aid Office at the Jakes Gerwel Hall, was met with excitement from students as Rethabile Phori from the CEI quizzed students to test their financial literacy. She asked: “Which is the best financial decision - to cook at home all week or eat out twice a week? How many subscriptions do you have and what would you choose: the soft life now or being debt-free by the time you're 40?”

To the latter, the students answered unanimously, “Soft life now!”. They were told there was still a lot to learn before they were ready to be financially responsible and independent. The group who attended the first day of the programme were in for a learning experience since only a handful of students had ever drawn up a budget. 

Shameema Hayat, a UWC alumna who works for Old Mutual, led the morning’s first session and emphasised the importance of saving. "Saving something small is better than saving absolutely nothing,” she said. She added that saving as little as R10 per day for the year would amount to R3650.

Lisakhanya Magcwebeba, a first-year B.Sc student in Mathematics and Statistical Science at UWC, said: “I’m handling my finances well, but I do need some extra guidance. I’m here because I’d like to learn about saving and about the techniques for saving. When I want an item and have the money, I would go out and buy it. I have a tendency not to wait until the item goes on sale, and I think I still need to work on that habit.” 

Students had the chance to win spot prizes after being quizzed on topics like different ways to save. They were asked whether friends and family influenced personal spending habits.

A student in the audience and a bursary holder agreed that his family's influence shaped how he spent money: “If there is a bursary payment of R15 000 for example, the first payment of R5000 goes to groceries for the family.”

Later in the programme, the facilitator, Hayat from Old Mutual, touched on being married in community of property and the consequences thereof. She explained good and bad debt. 

Aphiwe Mntambo, a first-year BSc Computer Science student and his friend Rorisang Msiza, a second-year student in Mathematics and Statistics, were both happy they attended the workshops offered to them. Image: Harriet Box / UWC

Aphiwe Mntambo, a first-year BSc Computer Science student, said the first thing he learned was not to make any bad credit. “I learned that bad debt means that you shouldn’t make debt you can’t afford. I also think it is good advice to note all of your small daily expenditures, like airtime and data purchases and to add them to your budget.”

Hayat also explained how the credit scoring process works. “A credit score looks at how regularly you pay your debt. To maintain a good credit score, one would need to ensure that their minimum instalments are paid before the due date.”

She suggested opening a small clothing account and paying it regularly to build a good credit record that can be monitored throughout the year.

Rorisang Msiza, a second-year student in Mathematics and Statistics, said the laws surrounding a marriage entered into in community of property are completely new to her. “What I understand clearly now is that when you choose to marry in community of property, you are also responsible for your partner’s debt, not only for the property you own together. ”

Following participation in the financial education workshops, students had to complete a budgeting exercise. Upon successful fulfilment of all requirements, a certificate of completion would be awarded.