JSE and Eastern Cape Education Department drive financial education in schools

The Johannesburg Stock Exchange (JSE) recently concluded an agreement with the Eastern Cape Department of Education to introduce investment education in 50 schools in the province in early 2010. The project aims to improve levels of financial literacy, encourage saving at a grass roots level with the ultimate aim of growing our economy.

In South Africa, approximately 200 000 individuals invest in their personal capacity on the JSE – a stark comparison to Australia where almost half of all trades are done by the country’s 5, 7 million individual investors. “We are a nation of non-investors, this coupled with a poor savings rate and a high debt to income ratio, severely limits our economic development,” says Maureen Dlamini SeniorGeneral Manager: Education at the JSE. “The JSE acknowledges its role in first promoting financial literacy and secondly debunking the myth that investing is only for the sophisticated or wealthy.”

The JSE Investment Education Project (JIEP) will be piloted in the districts of Dutywa, East London, King Williamstown and East London. “Pre-1994 JSE was an ivory tower, but today we able are to work with the JSE. This initiative will broaden the curriculum transformation in our school,” comments the Mr M Qwase Eastern Cape MEC for Education. JIEP was first implemented with great success in Gauteng in 2007 with 250 schools piloting the project. Kwa-Zulu Natal also has 50 schools involved in the project. “We don’t all learn good financial habits at home and money is often a taboo subject, financial education at schools will ensure that children are able to play an active role in managing their financial futures. We hope to extend the project to all 9 provinces, working alongside educators and ultimately handing over ownership to the various departments of education,” says Dlamini.

The initiative is aimed at Grade 9 and 10 pupils with an emphasis on practical financial knowledge. The first year of the course concentrates on basic financial literacy such as budgeting, saving and managing a bank account while the second year focuses on investment principles. Training for teachers, course material including detailed lesson plans are provided by the JSE. “It is gratifying to see the changes in how children view money – both in terms of increased respect for money and the realisation that wealth creation is not beyond their reach. For example, few people realise, that they can invest in blue chip listed companies for as little as R300 per month through an ETF.”

Dlamini comments that many of these children on the project experience firsthand the strain that poor financial literacy has on their families, from relatives who hide from township micro-lenders or don’t understand the terms and conditions of the financial agreements that they have entered into.

“It is only through talking about money and promoting a culture of questioning any financial advice given that these children will avoid the financial pitfalls that are so prevalent in our society.” concludes Dlamini.

Objectives of the project

· To develop the financial and investment skills knowledge amongst learners and teachers

· To develop learning resource material for both teachers and learners

· To inform learners about the employment opportunities in the financial sector

· To increase interest in investing and channel participation to the JSE/Liberty Life Schools Investment Challenge. The JSE/Liberty Investment Challenge is a game aimed at introducing learners to investment and the role of JSE in wealth creation and employment in the country

· To complement and supplement the national curriculum