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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

UFS appoints external consultants
2008-05-22

The management of the University of the Free State (UFS) has begun to co-operate with knowledgeable external consultants to provide them with additional capacity.

The consultants will assist the UFS in identifying the stumbling blocks in the implementation of the residence integration policy and suggest ways to overcome them. They will also support management and make recommendations on how to accelerate the transformation and integration processes.

One of the consultants will facilitate the strategic marketing and communication of the university. Another consultant will be responsible to manage the perception/reputation of the university after the damage done to its public image by the Reitz video.

“Although the UFS management will make a decision about the future of Reitz, they want to make it in consultation with as many stakeholders as possible. The decision will therefore be shared and discussed with the Council during its meeting on 6 June 2008. The outcome will take into account the submissions received from persons on whom this decision will have a direct impact as well as the submissions from other stakeholders. This includes current students in Reitz, their parents and the present staff of Reitz,” said Prof. Teuns Verschoor, Acting Rector of the UFS.

“In the interim management is also having discussions with the relevant role players Good progress is being made,” said Prof. Verschoor.

“The UFS will persist purposefully on its declared course of quality teaching, learning, research, community service, administrative and operational support. The management team is committed to lead the UFS purposefully and effectively as an academically excellent higher education institution,” he said.

Media Release
Issued by: Lacea Loader
Assistant Director: Media Liaison
Tel: 051 401 2584
Cell: 083 645 2454
E-mail: loaderl.stg@ufs.ac.za  
21 May 2008

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