my money June 2012

Empowering the Youth on financial matters

FREE

Your Relationship with Money Love or Hate?

South Africa June 2012

Vocational Training vs University Degree

We asked how YOU spend your pocket money

Contents 6 Your Relationship with Money - Love or Hate?

9 students in and around Pretoria tell us about their hobbies, spending habits, saving and being wealthy

14 Vocational Training versus University Degree

17 Zayed Future Energy Prize

22 Stand Up for Yourself

25 Read a Book my money 3

From the Editor Welcome to my money, our new updated free youth magazine!

This year we celebrate the Youth Month (June) and Youth Day (16 June) with a street足style interview feature of nine students in Pretoria, who answered our questions about their pocket money, spending habits, hobbies and much more. The goal?

Finding out how South Africans think about money and how do they spend it (and if they are saving at all). Some answers might just surprise you!

Enjoy our June issue and don't forget: Stay young and wealth wise!

Denisa Oosthuizen Managing Editor Publisher/Design REO Media Solutions Managing Editor Denisa Oosthuizen denisa@wealthwisemag.co.za editor@wealthwisemag.co.za Contributors Nikki Viljoen Sales and Marketing sales@wealthwisemag.co.za

www.wealthwisemag.com

4 my money

Copyright All content and information within my money publication is property of the Publisher and should not be reproduced, copied or entirely quoted without the prior approval of the Publisher, being protected under copyright laws.

Should you wish to make use of any of the content displayed please contact us at denisa@wealthwisemag.co.za or editor@wealthwisemag.co.za.

Your Relationship with

South Africa's youth answer to our questions about po

Vuyo Dibakwane, 21 2nd year at Boston college Arcadia campus What does wealth mean to you? Fame.

Where do you get your pocket money from? I get my money monthly from a part time job and from my parents.

How much money do you have every month to spend on what you like? I have R1000 to spend on what I like.

How do you spend your pocket money? Clothes and airtime.

Do you save some money every month and why?

I save money every month for future investments.

What do you like to do in your spare time? Relax at home, watch movies and browse the Internet.

What publications do you enjoy reading? FHM, Heat magazine and tabloid newspapers.

Do you have a (part足time) job? If not, are you interested in job opportunities? Yes, I have a part time job and I am interested in job opportunities.

What would you like to be/become/do after you finish your studies? An IT technician.

What would you do with the money if you won the lottery? I would buy a fancy car and a mansion.

6 my money

Money - Love or Hate?

ocket money, saving, hobbies, future career and more

Jade Williams, 21 1st year at University of Pretoria What does wealth mean to you? Wealth means having money in your bank account.

Where do you get your pocket money from? My parents give me money to pay rent and bills. I also have a part time job where I work with celebrities or VIP companies.

How much money do you have every month to spend on what you like? It depends, last week I had three successful events and I made like ten thousand rands.

How do you spend your pocket money? Make up, clothes, food and partying.

Do you save some money every month and why?

I don’t save any money. I have a spending problem, every time I see something that I like I want to buy it.

What do you like to do in your spare time? I chill with my friends.

What publications do you enjoy reading? Do you read online? It’s always blogs.

Do you have a (part­time) job? I do marketing and PR for Moloko club in Pretoria.

What would you like to be/become/do after you finish your studies? A lawyer.

What would you do with the money if you won the lottery? I’d save some and buy a nice car and a house somewhere.

my money 7

Grae Palle, 18 1st year at University of Pretoria What does wealth and money mean to you?

It’s quite important, we can’t survive without it.

Where do you get your pocket money from?

How often? I get my pocket money from my parents and I often get it when I run out of money.

How much money do you have every month to spend on what you like? I spend like R200 on what I like.

How do you spend your pocket money? I buy clothes, new things.

Do you save some money every month and why? No, I don’t save any money.

What do you like to do in your spare time?

I’m a swimmer.

What publications do you enjoy reading? Do you read online? It’s more online.

Do you have a (part­time) job? If not, are you interest in job opportunities? I don’t have a part time job and I’m not necessarily interested in getting one.

What would you like to be/become/do after you finish your studies? A chattered accountant.

What would you do with the money if you won the lottery? Save some of the money, buy a car and a house.

8 my money

Siyanda Nkala, 21 2nd year at Tshwane University of Technology What does wealth and money mean to you?

It means a lot, because you can’t live without it. In order to have a luxurious life, you need money.

Where do you get your pocket money from?

How often? My parents give me my pocket money. I get it monthly.

How much money do you have every month to spend on what you like? I spend like R500.

How do you spend your pocket money? I buy clothes, go out with friends and watch movies or do lunch.

Do you save some money every month and why? I don’t save money, because I don’t feel that urge of starting to save money.

What do you like to do in your spare time? I hang out with friends.

What publications do you enjoy reading? Do you read online? Definitely online.

Do you have a (part­time) job? If not, are you interest in job opportunities? No, I don’t have a part­time job yet, but I will like to have one to make extra cash.

What would you like to be/become/do after you finish your studies? I want to become a magazine editor or even own my own magazine.

What would you do with the money if you won the lottery? I’d save some of the money and spend the rest on myself and my parents.

my money 9

Martin Mosehle, 21 1st year at Boston city campus (media house) What does wealth and money mean to you? It means a lot to me, we need money to survive.

Where do you get your pocket money from? I get my pocket money from my parents monthly and I also have a part足 time job.

How much money do you have every month to spend on what you like? I spend approximately R800 on the things I like.

How do you spend your pocket money? I spend it on clothes and I use it to go out.

Do you save some money every month and why? Yes, I do save money because I want to start my own radio station.

What do you like to do in your spare time? I hang out with friends or listen to some music.

What publications do you enjoy reading?

Do you read online? I prefer online or digital magazine.

Do you have a (part足time) job? If not, are you interest in job opportunities? I do have a part足time job.

What would you like to be/become/do after you finish your studies? A broadcaster.

What would you do with the money if you won the lottery? I would start my own radio station.

10 my money

Tsholofelo (Tsholo) Hope Mosane, 21 2nd year at Tshwane University of Technology What does wealth and money mean to you? Everything, happiness, challenges and fun.

Where do you get your pocket money from? I have a part time job, and my parents also give me some money.

How much money do you have every month to spend on what you like? Around R300.

How do you spend your pocket money?

Food, outings, I just spend money without thinking twice.

Do you save some money every month and why? Yes, I have big plans that will need my attention soon.

What do you like to do in your spare time?

I love to chill and watch TV. I enjoy acting and swimming.

What publications do you enjoy reading?

Do you read online? I buy magazines. I mostly buy True Love and Glamour.

Do you have a (part足time) job? If not, are you interest in job opportunities? Yes. What would you like to be/become/do after you finish your studies? Media Planner.

What would you do with the money if you won the lottery? Travel the world and build my own company.

my money 11

Tebogo Mpawu, 22 3rd year at Tshwane University of Technology

Xanthe Woycieh, 18 1st year at University of Pretoria What does wealth mean to you? makes life convenient.

It

Where do you get your pocket money from? I'm a part­time waitress and get money every month from my parents.

How much money do you have every month to spend on what you like? I spend R400.

How do you spend your pocket money?

All my pocket money goes on painting and looking after my horse.

Do you save some money every month and why? I save money every month, so that I can look after my horse.

What do you like to do in your spare time? Listening to music and riding.

What publications do reading? Newspapers.

you

enjoy

Do you have a (part­time) job? If not, are you interest in job opportunities? I have a part time job and I am interested in job opportunities.

What would you like to be/become/do after you finish your studies? A vet (veterinary doctor).

What would you do with the money if you won the lottery? I would invest all the money.

12 my money

What does wealth mean to you? A tool of living in our modern society.

Where do you get your pocket money from? Part­time job.

How much money do you have every month to spend on what you like? I spend R500.

How do you spend your pocket money?

Clothes, hair make­up and food.

Do you save some money every month and why? No, because the amount of money I get is not enough for me to save.

What do you like to do in your spare time? Watching movies and listening to music.

What publications do you enjoy reading?

The New Age for general news and information, People magazine for the latest showbiz information and Marie Claire for the latest fashion.

Do you have a (part­time) job? If not, are you interest in job opportunities?

Yes. What would you like to be/become/do after you finish your studies? An entertainment and lifestyle journalist.

What would you do with the money if you won the lottery? Buy an apartment in Pretoria or Bloemfontein.

Tebogo's photo: page 13, bottom

Palesa Molava, 22 3rd year at University of Pretoria What does wealth mean to you? It means success.

Where do you get your pocket money from?

I Get money from parents every month and also have a part足time job.

How much money do you have every month to spend on what you like? I spend R800 on what I want.

How do you spend your pocket money? On having fun and going out with friends.

Do you save some money every month and why? I do save money for my future.

What do you like to do in your spare time? I enjoy going to the movies and partying.

What publications do you enjoy reading?

Newspapers and fashion magazines.

Do you have a (part足time) job? If not, are you interest in job opportunities? I'm focused on finishing school for now and not interested in other job opportunities.

What would you like to be/become/do after you finish your studies? A business analyst.

In conclusion, with few exceptions, the students we interwiewed are involved in part time jobs, receiving extra money besides their parents' monthly allowance.

Most admit spending easily and having a huge challenge with savings, while some are not interested at all in saving some cash (it's never too early to start, guys!).

Saving from a younger age helps getting into the behaviour. Take 10% of any money you receive and put it in a savings accounts 足 you'll reap the rewards later!

This feature was written by student interns Abram Molelemane, Tshepo Ntsoelengoe and Sihle Masuku

my money 13

Vocational Training versus University Degree

by Natalie Zimmelman

14 my money

hen a young person is faced with deciding what to do after matric, it is certainly a huge, life changing decision all on its own. Statistics show that only 10% of young people that do achieve a matric certificate gain a university exemption and thus entry into university. Even more worrying, of those who do manage to get into university, barely half end up with a degree.

W

Sowhatliesaheadforthose of you who have completed matric? Questions you are probably pondering could include what skills are in short supply in the economy, such as

accounting, and does that match with what you want to do as a profession. Do you study further to acquire these skills at university or applydirectlyforinternships and vocational on­the­job training programmes?

Benefits and challenges muchcoachingandon­the­ job training when they do of university secure a job.

For those who gain university exemption the University alternative – benefits of an academic vocational training qualification at university (or are great. It teaches Competence­based traditional skills of essay vocational) training is an writing and research. alternativeforthosewhose Additionally, if you decide marks preclude them from to live on campus, you going to university or who learn to live and work with wish to start working as others, often far from soon as possible. This form home. But the challenges of training is a way of teaching learners not only are also significant. the critical knowledge needed in their area of The so called perceived speciality, but also how to prospect of better job apply this knowledge in a opportunities and a work environment. It is a supposed higher standard practical means of of living when you have a learning, where you learn university degree (which is HOW to do things rather not necessarily true) lead than just WHAT to do. many families to make significant sacrifices in For the majority of young order to provide a South Africans the benefits university education. of vocational training are great. Costs can be lower Another concern is that and yet the benefits go despite several long years beyond that of a university ofstudy,learnersarerarely degree – in that the prepared for the graduate is work­ready. practicalities of the working world, requiring

my money 15

He or she is well placed to step into a job and add value to the company from day one. This not only provides a new employee with much needed confidence in the initial months of his or her working life, but also saves the employer money by having a productive employee who does not need too much hand­holding.

While the content of competence based training may or may not be different from traditional academic qualifications, the essential difference lies in implementation.

The Association of Accounting Technicians’ (AAT SA), offers qualifications for entry to mid­level staff in the accounting profession and is a qualification that demands that a student can integrate his or her knowledge and skills

16 my money

before graduating.

The measure of success is not an academic pass, but the ability to add value to the company’s financial team from the very start.

Global and respected qualification The success of competence­based training is also best described by the AAT’s achievements globally. In Botswana business has been known to prefer an AAT graduate over a university graduate and it is seen to be the entry­ level qualification of choice into the accounting sector. And in the United Kingdom, 35% of advertisements for mid to lower level accounting staff require the AAT qualification as a pre­ requisite, with these graduates being able to command a 15% higher salary than a non­AAT

member.

Conclusion When weighing up your options, know that one route is not better or worse than another, there is a place for both types of training: competence/vocational training or the more traditional university qualification.

It is ultimately up to you to take responsibility for your destiny, so think carefully about your own personal goals and preferred way of learning.

Listen to your heart but also back it up with research and facts. It is only then that you can truly make the choice that is right for you.

Natalie Zimmelman is Business Development Manager at Association of Accounting Technicians (AAT).

Zayed Future Energy Prize now open for African high schools

my money 17

he US$4 million Zayed Future Energy Prize is open for submissions and calling for African High Schools, small to medium enterprises, non­ governmental organisations and people nominated for lifetime achievement to enter prior to the deadline of 16 July 2012and win their share of US$4 million in prize money.

T

Zayed Future Energy Prize is a renewable energy and sustainability competition awarding the best renewable energy and sustainable technology initiatives worldwide. Dr Nawal Al­Hosany, Director of the Zayed Future Energy Prize, is encouraging Africans to step forward an enter the competition.“We have seen commendable innovations from the African continent in the past five years and we want to inspire more energy innovators from all African countries who can create solutions that meet the energy challenges of our time".

18 my money

This year, the scope of the Zayed Future Energy Prize has been broadened to include five distinct categories: Large Corporations, Small and Medium Enterprises (SMEs), Non­Governmental Organizations (NGOs), Lifetime Achievement, and the newly instituted Global High School Prize.

The Zayed Future Energy Prize is fast becoming the pre­eminent platform for innovatorsfromaroundthe world; nurturing and developing young minds at an early age and encouraging them to innovate lies at the heart of our global drive.

The US$500,000 Global High School Prize will be split into five parts with winning schools in Africa, the Americas, Asia, Oceania and Europe being awardeduptoUS$100,000 each.

High Schools from around the world are requested to

submit a business case for how they plan on utilising the prize for the purpose of raising awareness on the importance of sustainability and improving the school’s environmental footprint.

Projects submitted must be based on one or more of the three pillars of the UN Sustainable Energy for All Initiative which includes Energy Access, Energy Efficiency and Renewable Energy. Information and entry process can be accessed at www.zayedfutureener gyprize.com/en/ Last year the prize attracted a record 425 applications from more than 70 countries.

The Prize recognised Schneider Electric in the Large Corporations category, whilst the prize total of US$3.5 million was awarded to Professor Ashok Gadgil in the prestigious Lifetime Achievement category (US$500,000).

"The Zayed Energy Prize is nurturing and developing young minds at an early age by encouraging them to innovate" The Carbon Development Project (US$1.5 million) was the winner in the SME & NGO category. The first runner­up for the SME/NGO category, Orb Energy was awarded US$1 million, while the second runner­up, the Environmental Defense Fund was awarded US$500,000.

The Zayed Future Energy Prize celebrates achievements that reflect innovation, impact, long­ term vision and leadership in the fields of renewable energy and sustainability.

The Prize was created in honor of the legacy of the late Founding Father and President of the United Arab Emirates, Sheikh Zayed bin Sultan Al Nahyan.

It aims to inspire the next generation of global energy innovators to create solutions for the future and is awarded annually to individuals, companies or

organisations that have made significant contributions in the global response to the future of energy, climate change and sustainable global energy resources.

The winners are chosen according to a stringent four­stage selection process. The first stage involves an independent research and analysis firm conducting all necessary due diligence of each candidate’s application.

During the second stage, a review committee evaluates each candidate and shortlists entries in each award category using a scoring matrix based on the Prize’s four criteria.

In the third stage, a selection committee comprising leading experts in the field of renewable energy and sustainability evaluates the shortlisted entries.

Submissions

that

have

scored the highest make it to the fourth and final round, where an elite jury comprised of various heads of state, leading academics, energy experts and world renowned personalities with a keen interest in sustainability, reviews and selects the winners and runners up in each award category.

For further information you can view the following resources: Website: www.zayedfutureenerg yprize.com Facebook: www.facebook.com/tzf ep Twitter: www.twitter.com/zfep Blog: http://blog.zayedfutur eenergyprize.com YouTube: www.youtube.com/zay edfep

my money 19

Dr. Nawal Al-Hosany, Director of the Zayed Future Energy Prize

Zayed Future Energy Prize has been awarded large corporations, smaller businesses and NGOs, including from Africa, for their contribution to renewable energy and sustainability worldwide.

What has motivated the extension to African high schools participating in this competition?

Thank you for your question. In order to clarify, I must mention that the Zayed Future Energy Prize is a global prize and has been awarded to companies, individuals and non­ governmental organizations from around the world; from India to the UK, the US to Japan.

The Prize has always received submissions from Africa. This year, with the

20 my money

launch of the Global High Schools Prize, we aim to reward 5 different High Schools from five different geographical regions: The Americas, Europe, Asia, Oceania and of course Africa. Given that we receive submissions from schools calling for funding for a project that clearly demonstrates sustainability through efforts that are focusing on the use of renewable energy, the incorporation of energy efficiency measures or a project that demonstrates energy access – a school from Africa will definitely win.

This is an unrivalled opportunity for a school in Africa to receive funding that might prove crucial.

We have a strong understanding of Africa and are especially keen to

help the continent further its efforts towards a sustainable future – what better way than to begin with our future generations.

In your opinion, how is the younger generation, particularly the young Africans, perceiving environmental issues, green technologies and technological innovation in today’s world?

Although we do not own statistics on the perceptions of youth in Africa – I believe that due to this great technological age – the access to information is slowly transforming our youth from knowledge receivers to knowledge disseminators.

This is quite an empowering and important paradigm shift

in our social structure.

What this means is that perceptions are changing as well – as is access to information. We live in a time when the youth are much more interested and have access to information much more readily than before. This is why we trust that part of this category will be driven by students and not only the principles or teachers in schools.

Does Africa have an immense potential, in your opinion, to come up with innovative solutions to world’s environmental problems, and if so, why?

I believe that Africa enjoys a vast amount of diversity – and with diversity comes a kaleidoscope of opinions and creativity.

The formula for innovation, alongside knowledge is exactly that. Meanwhile, Ibelieve a continent like Africa, rich with diverse renewable energy potential and clearly taking steps towards leveraging on this potential – is quite committed to dealing with the global issues facing us today in the environmental and sustainability spheres.

What is your message to African high school children across the continent?

My message to you is that we have always admired your individuality – and with this great age of information – we believe that a solution to future challenges lies in your hands. We are here to help and encourage that – but we can only do this if you ask – and one way of asking is to submit for the Zayed Future Energy Prize! photo: suerego.com

my money 21

Stand UP for Yourself

by Nikki Viljoen

22 my money

ao Tzu says “He who gains a victory over other men is strong; but he who gains a victory over himself is all powerful.”

T

There have been several programs on TV that have been about bullying and they were all somehow focused on the victim. Let’s take one of them as an example.

There was this young chap (let’s call him Eric) around 14 who had lost his father at the age of 8 and now it was just him and his mum.

His dad had gotten him interested in Japanese comic strips and it was something that he continued on his own. The kids at school really didn’t ‘get it’ and he became the butt of their jokes. Because he didn’t react in any way, pretty soon the ‘jokes’ became violent and he was being taunted and beaten up on a regular basis.

the result was that over a period of two years, Eric changed schools eight times.

Not a good situation, as I am sure you will agree. As Eric moved from school to school, he became more and more the ‘butt’ of the bullies.

Not having any time to form any of his own roots and find friends who had similar interests meant that he was on his own most of the time. Being on his own made him more susceptible to being the prey of bullies, and so the cycle continued.

Eric eventually started making up ‘pains’ and fevers to get out of school and his mother eventually took him off to see a doctor.

The doctor (let’s call him Phil) happened to be a child psychologist and when Phil examined Eric for his so called ‘stomach ache’ the truth came out. Phil told Eric that he needed to ‘stand up’ for himself and that bullies, when confronted, would usually Eric’s mum’s way of dealing back down and he would with this was to take her then be left alone. Good son out of harm’s way and

advice, I am sure you will agree – but this was a TV program, so of course it didn’t work like that.

Eric, in an attempt to ‘stand up’ for himself, took a knife toschoolandhewasbusted by one of the teachers.

Mother dearest was furious with Dr. Phil, because this was all his fault, and would not allow Eric to see the doctor again. To ensure a good dose of drama, Eric attempted to commit suicide.

As he regained consciousness, Eric spoke to Phil and explained how he felt that he could not meet anyone who he could connect with at school because his mum kept moving him. Phil explained that the first step would be to ‘stand up’ to his mother.

Eric’s mum only wanted to keephersonsafeandagain wanted him to move to another school.

Eric eventually stepped up to the plate and convinced his mother that this was something he had to do for himself.

my money 23

He had to overcome his own fears and he had to face his tormentors, without showing them any fear, and he had to find ‘the others’ like himself – he could no longer run and he could only do this if she left him in the same school.

The message is very clear – there is a very wrong and a very right way to gain victory over your enemies, but in order for that to happen you have to gain victory over yourself and (as in this case) it meant Eric facing his own fears and gaining control over them.

Gaining a measure of control over myself, my fears and insecurities was one of the biggest steps forward that I took and for what it’s worth, it made (at that point) my self esteem soar. I felt as though I had conquered the world and that made me feel and react differently. Other people started to see me in a totally different light altogether.

So the next time you feel tiny and insignificant in the face of the world, remember to gain control of your fears, of yourself and that victory will carry

you through any kind of adversity.

You will be all powerful because you will be victorious over your biggest enemy – yourself!

Nikki is an Internal Auditor and Business Administration Specialist.

Contact Nikki on +27(0)83 702 8849, email nikki@viljoenconsulting .co.za or visit www.viljoenconsulting. co.za.

"The next time you feel tiny and insignificant in the face of the world, remember to gain control of your fears, of yourself and that victory will carry you through any kind of adversity"

24 my money

Read a Book Robert Kiyosaki with Sharon Lechter, Rich Dad’s Escape from the Rat Race – How to become rich by following Rich Dad’s advice Best­seller author of Rich Dad, Poor Dad book series, Robert Kiyosaki is a powerful professional investor, entrepreneur and educator who has dedicated part of his life to becoming financial free and teaching other individuals, in an accessible and fun way, financial and investing strategies that build consistent wealth.

Written in a fun comic book style, “Rich Dad’s Escape from the Rat Race – How to become rich by following Rich Dad’s

advice” educates the reader about money management in order to achieve “financial intelligence”. The book demystifies the concepts of assets, liabilities, job/work, investments and business, in plain language, using story­ telling and graphics to capture the audience.

Suitable for both children and adults, the story teaches the basics of making money and creating assets, how to make money work hard for you instead working

hard for the money and how “working to learn, not to earn” paves the way to moneymaking opportunities.

A recommended read (it takes a maximum half an hour to read it!) for everyone: those already familiar with the Rich Dad, Poor Dad series; those who want to be introduced to a wealthy life; those who want to teach their children the basics of making money.

Do not miss this one!

my money 25