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07 May 2018 Photo Valentino Ndaba
Study shows students shop more and save less Dr Koloba
Dr Habofanwe Koloba, senior lecturer at the University of the Free State’s Department of Business proposes financial literacy as the solution to student debt and lack of saving predicament.

Did you know that failing to service store or credit card debt may jeopardise the growth of South Africa’s economy? Outstanding payments might seem inconsequential but they may adversely affect the country’s credit rating. Dr Habofanwe Koloba, senior lecturer at the University of the Free State’s Department of Business Management recently published an article titled: “Access to credit and saving behaviour of generation Y students: Are we educating an over-indebted generation,” in the Journal of Economics and Finance Studies which speaks of this phenomenon. 

From analysing the financial behaviour of a group of 145 millennials and literature, Dr Koloba hypothesised that easy access to store and credit cards by Generation Y students had influenced their poor saving habits. “There is a statistically significant relationship between store or credit card usage and lack of savings among Generation Y students,” he writes.

Salvaging the situation
Dr Koloba advocates for the integration of financial literacy within the curriculum in addition to parents playing an active role in instilling financial intelligence in their children from a young age. He also asserts that financial institutions need to offer products that encourage saving among students rather than luring them to indebtedness.

The benefits of saving 
Savings are channelled into dividend-producing investments which fuel the eradication of poverty, inequality and unemployment as well as provide capital for infrastructure development. Needless to say, a consumerist society with a poor saving culture does not promise to attain these successes.

News Archive

Inaugural lecture: World on verge of agricultural revolution
2008-05-19

A changing economic climate and new technology will see to a number of interesting changes in the livestock industry in the next few years. This is according to Prof. Frikkie Neser of the Department of Animal and Wildlife and Grassland Sciences, who delivered his inaugural lecture at the UFS on the subject: “The quest for a superior animal”.

Prof. Neser focused on the future of animal breeding in the next few decades.

He said the world, but especially South Africa, stand on the verge of a revolution in the agriculture sector. The whole production scenario will probably change. The high fuel and food prices are the two biggest factors that will play a role.

“Increasing fuel prices opened the door for the production of bio-fuel. The fuel industry is in direct competition with humans and the livestock industry for the same resource that result in unbelievable high prices for maize, sunflower and soya. These prices can further increase with the worldwide shortage of food,” he said.

More profitable breeds could take the place of existing breeds because of the big increase in input costs, he said. “Selection for more effective, and not maximum production, will became more important.

“There are also indications of pressure on feed lots. If this industry downsizes, it could lead to a total turnaround in the beef industry. The feed lots prefer a later maturing animal that can put on a lot of weight before fat is laid down. If this industry declines, early maturing breeds and some of the synthetic breeds, as well as crossbreeding with early maturing breeds, will play a more prominent role in the meat industry.

“This will also lead to a decline in the total number of animals in order to prevent overgrazing. This can result in an increase in imports from neighbouring countries and especially Brazil, where production costs are much lower.

“One way to increase the profitability of meat production is to utilise niche markets. There is world-wide a shift to more natural products. The demand for grass-fed beef drastically increased. According to research it is healthier than meat from feed lots and usually free of hormones and antibiotics. If factors such as traceability are put in place, this could be a very profitable niche mark for the South African meat industry,” he said.

Prof. Neser also said: “In order for breeding societies to survive they need to increase the number of members and the animals that are being registered. This they do by replacing the word stud with recorded animals. Hereby they open the door for excellent commercial animals to become part of the seed-stock industry. Another benefit is that especially in the smaller breeds more information becomes available, resulting in more accurate breeding values.”

Prof. Frikkie Neser.

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