Help your employees to stop living from paycheck to paycheck

Help your employees to stop living from paycheck to paycheck

Many South Africans find themselves crawling from payday to payday. Not even wealthy South Africans are walking confidently when it comes to their finances. Rising food prices and increased fuel and travel expenses are just a few reasons why ALL South Africans, wealthy and poor, feel like they are wading through mud financially.

A strong economy starts with strong personal financial habits. Employers play a vital role in supporting their workforce on their journey to becoming financially healthy.

Want to help your low income workforce enjoy a worry-free January? Encourage them to start budgeting now

The festive season is fast approaching and soon every major retail store will be filled with Michael Bublé’s rendition of “I’m dreaming of a white Christmas.” 

While the festive season brings much fun and excitement, as a business owner, you’re also facing year end deadlines, clinching last minute order deals, and the responsibility of paying out bonuses. However, January and its inevitable financial crunch lurks in the background of holiday festivities. 

As the festive cheer fades and the tinsel and lights are taken down and boxed until next year, many employees find that they’ve overspent and ask for salary advances or take out loans to cover transport, food and electricity costs to make it through the month. Factor in the additional costs of school uniforms and stationery needs, and January quickly becomes overwhelming.

Salary advances or company loans to employees may offer temporary relief, but it is a less-than-ideal way to start the year. Here’s how you can help your low income workers avoid the infamous “Janu-worry” blues.

1.  Plan early for festive season spending

Encourage your employees to start saving now for their December and January expenses. Make it relatable for them. Share real-life scenarios you or other employees have dealt with, especially instances where under budgeting and overspending have led to financial stress. By sharing these experiences, you can help your employees learn from others’ mistakes and take proactive steps to avoid them. Explain the benefits of early financial planning for the festive season.

2.  Compile a budget

Simply put, a budget is a plan that outlines how to spend your money every month. Help your employees understand the importance of writing down what their income and expenses are to give them a clear picture of where their money is going. This simple step can make a big difference in understanding their financial habits. Furthermore, provide resources and workshops on budgeting techniques, saving strategies, and financial goal setting to help employees gain control over their finances

<< Download our free SMART budget template to help you save >>

3.  Save your bonus

If your employees are eligible for a bonus at the end of the year, take the opportunity to have a conversation with them about the importance of saving it for essential January expenses such as school clothes and stationary or for unexpected expenses in the future. Having money saved in the bank will alleviate any unnecessary stress and pressure and help them carry the holiday cheer into the new year.

4.  Help them understand the risks of borrowing money

Microfinance and payday lenders provide small loans, usually without collateral, to low income earners who lack access to traditional banking services to cover emergency expenses. Unfortunately, these loans come at a price and keep employees trapped in a cycle of debt.

Financially literate individuals are less likely to fall victim to predatory lending practices or fraudulent schemes. With the right knowledge, they can start developing better financial habits such as budgeting, saving, and investing for the future.

5.  Partner with Picsa to help 

By partnering with Picsa, give the gift of knowledge and practical tools to help reshape the financial trajectory of your employees. Picsa offers affordable financial products, practical education, and meaningful rewards, all designed to encourage positive behaviour change and improve the financial health of your low income workforce. 

Contact us to learn more about our simplified wealth-creation solutions.

Weaving a Tapestry of Hope for Low Income Workers in South Africa

Weaving a Tapestry of Hope for Low Income Workers in South Africa

Picsa’s financial solutions were built around the principle of hope: we want to give low income workers hope that they can overcome their debt and we want to be a beacon of hope for them and their families for the future. 

Just like tapestry weaving involves slow and steady work to weave unique pictures, we believe that steady progress in terms of achieving financial goals is possible. 

Client Testimonial: “Picsa has helped us become financially mature adults”

Learning to become financially independent and work towards becoming financially healthy can seem like an impossible task sometimes. However, Marie Nel, administrative assistant at Vadersgawe, shares her story about how Picsa helped her take control of her finances and save towards her future.

Picsa is a financial services provider that offers simplified wealth creation solutions designed to help low-income workers become financially healthy. From the day we meet our clients face-to-face during our workplace presentations, we journey with them by guiding them and providing solutions to overcome debt and save for emergencies and for the future.

Says Marie, “At first I wasn't sure about Picsa's way of saving, but after talking with my husband and my brother, I decided I was going to try it myself. My brother works for another farm and is very positive about Picsa.”

Our product offering includes a range of investment options tailored to various financial needs, such as budget-friendly funeral plans, responsible lending solutions, and a one-of-a-kind loyalty program that rewards good financial choices. 

Marie continues, “I first took out a funeral policy from Picsa, and then started with a short- and long-term savings plan. I have benefited from all three of these products. The beauty of saving with Picsa is that it requires me to apply for withdrawals on the first of every month, thereby instilling a sense of discipline. If I forget, I miss out on accessing my savings for that month.”

Our goal is to give low income workers control over their finances, and saving, even in small amounts, is key to achieving this. By saving, employees are able to build financial health, allowing them to handle unexpected expenses without crisis or feeling the need to take out an unsecured loan. Marie recalls such a time in her life. “My mother died, and I was able to apply for a claim. It took me ten minutes to do the application, with the best help from Picsa. It wasn't even a day later and the money was in my account. I bragged to all my coworkers about the great service. I still encourage people to use Picsa's policies.”

At Picsa, we believe that we have the responsibility to ensure that all South Africans have access to savings products, irrespective of their income, as well as affordable insurance and access to responsible credit. In time, we want to see every South African start saving to build financial security for themselves and their families. 

Marie shares how Picsa has helped improve the financial health of the staff at Vadersgawe. “Picsa has helped us become financially mature as adults. Parents can now take care of their families, both in season and out of season. Our Xhosa team members all saved up to go home to the Eastern Cape, and they didn't use their bonus for that. The children's school clothes and stationery can also now be purchased in cash without using loans.”

"With Picsa, people have money any time of the month. I remember a time when one of our team members managed to save R900 every week. During this time, there was a particular week when he had only R40 left after saving and taking care of other expenses. When I expressed concern, he assured me he'd manage just fine. Picsa helps you stay disciplined and committed to your financial goals.”

Marie concludes, “Employer partners do not make a mistake in giving Picsa a chance to help their people to empower themselves financially. Vadersgawe's people now have more wisdom and insight around finances.”

At Picsa, we dream of seeing the lives of low income workers in South Africa flourish. If you’re interested in digging deeper and learning more about helping your employees become financially secure, contact us. We’d love to partner with you.

Empowering Women in Blue-Collar Jobs to Navigate and Overcome Financial Challenges

Empowering Women in Blue-Collar Jobs to Navigate and Overcome Financial Challenges

South Africa commemorates Women’s Day during August, with the theme “Celebrating 30 years of democracy Towards Women's Development”. However, according to StatsSA, the labour market in South Africa still favours men over women, revealing large gender gaps in employment and indicating that women’s development still has a long way to go.

This issue is not unique to South Africa. Globally, workplace inequalities between men and women persist, with less women participating in the labour force than men. Additionally, women are less likely to secure employment compared to men.

How to Start Saving when Money is Tight

How to Start Saving when Money is Tight

"There’s no time like the present." This saying holds especially true when it comes to saving. With countless good reasons to start saving, it often feels like there's never a good time to actually do it. Life's unexpected challenges – the car breaking down, a child's illness, and many other unforeseen expenses – can easily derail even the best-laid plans. National Savings Month is the perfect opportunity to overcome these obstacles and make a commitment to your financial future.

Head, Heart, & Hands: A Different Approach to Financial Literacy

Head, Heart, &amp; Hands: A Different Approach to Financial Literacy

So many individuals work hard every day to earn their keep but struggle to make ends meet, living from hand to mouth without any savings or long-term investments. This is a reality faced by many South Africans, especially low-income workers, where a lack of financial education keeps them trapped in a cycle of poverty.

Financial literacy is about empowering all individuals, regardless of their income, with the tools to make informed financial decisions, set goals, and plan for the future. For low-income workers, this can mean the difference between living in constant financial stress and building a foundation for long-term financial stability. 

What if we could change this narrative? What if we could empower low income workers with the knowledge and skills to take control of their finances and provide them with tools and resources to build a healthy financial future and break free from debt and loans?

Conquering Debt, Gaining Financial Freedom

Conquering Debt, Gaining Financial Freedom

Debt. It can be a formidable opponent, much like a double-edged sword. In the realm of personal finances, it has the power to pave the way for a prosperous future or injure and burden individuals and their loved ones for a lifetime. Just as a skilled swordsman hones their technique, empowering your employees, especially blue-collar workers, to sharpen their proverbial financial swords will help them improve their financial health.

During March, Debt Awareness Week places the spotlight on consumer debt, and its effects, and acts as a catalyst to start the conversation about personal debt. Debt Awareness Week presents a valuable opportunity for employers to engage their employees about responsible financial practices and how to help them escape the debt trap.

Moving the Needle on Financial Inclusion in South Africa

Moving the Needle on Financial Inclusion in South Africa

Generally, the use of financial products and services to promote savings and wealth accumulation is slanted towards households with higher incomes. Research indicates that there is still an alarmingly high rate of financial exclusion among the poor.

Financial inclusion is broadly defined as all persons having timely and fair access to appropriate, fair and affordable financial products and services such as bank and savings accounts, loans and insurance products, among others.

Planning for Retirement: Advice for Low-Income Workers in South Africa

Planning for Retirement: Advice for Low-Income Workers in South Africa

Anxiety about money is a topic that keeps South Africans awake at night. This, and other insights, were revealed in a survey conducted earlier this year by one of the country’s largest financial services providers. Among others, the survey indicated that only 36% of South Africans currently have a retirement fund. Furthermore, studies show that many South Africans will have to rely on social grants as part of their retirement to maintain their current lifestyle.  

The reality is that most South Africans are not planning for retirement financially. For low-income workers, the situation is even more challenging as limited disposable income provides little room for savings, let alone saving for long-term goals such as retirement.

Thian De Beer, Chief Executive Officer (CEO) of the Picsa Group, gives some perspective on the current state of retirement specifically for low-income workers and shares how starting small with Picsa can make responsible saving and retiring possible for all South Africans. 

Leaving a Lasting Financial Legacy: Building for the Future

Leaving a Lasting Financial Legacy: Building for the Future

As we go through life, it's common to contemplate the impact we'll have when we're no longer around. "Legacy" typically brings to mind abstract concepts like values, principles, and reputation. However, it's crucial to also consider the financial aspect of our legacy. This includes passing on wealth, assets, and resources to future generations, ensuring that our loved ones can benefit from our financial security and dedication even after we've passed away.

Supporting Low-Income Workers: National Savings Month and How Employers Can Help

Our nation is faced with a challenge: a shockingly low savings rate of just 0.5%. Deloitte South Africa's recent findings shed light on the income households, businesses, and governments save instead of spending in our economy. This indicator reflects the health of our nation's finances and provides insights into future investment trends. However, this data barely scratches the surface. 

Many South Africans need help to keep their budgets out of the red in our current economic climate. The rising cost of staple foods along with the increased costs of everyday living make it especially difficult for most households to survive, let alone save. Sadly, those earning in the low-income bracket, who make up most of the workforce in South Africa, are especially hardest hit as they often rely on debt to make ends meet. Ultimately, the only lasting way to get out of debt is to change the way you think about and spend your money. 

National Savings Month

The Savings Institute of South Africa has designated July as the annual National Savings Month, which provides employers with an opportunity to not only remind cash-strapped employees about the importance of saving but also to provide help that will benefit them both now and in the future.  

Savings month challenges consumers, to strive towards living within their means, and to reinforce positive financial behaviour.  Research has shown that more than 80% of middle-income consumers with monthly earnings between R15 000 and R42 000 have no or limited savings.  You can only imagine how hard it must be for that earning in the low-income bracket to save. 

To help South African consumers during the global financial crisis, consumer protection agencies have come together to encourage a saving mindset. Their goal is to improve the financial health of all South Africans by promoting the habit of saving.

How to support your workers' financial health journey?

As an employer, you can greatly impact and change the course of not only your employees but also their families' lives.  By investing in your employees' financial health, you contribute to their overall happiness, engagement, and productivity in the workplace. 

It's important to consider a holistic approach by incorporating a variety of strategies. Here are some ideas that you can implement to support your workers:

  • Encourage budgeting and financial planning: Provide resources and workshops on budgeting techniques, saving strategies, and financial goal-setting to help employees gain control over their finances. You can invite registered financial organisations like Picsa to help your workers with this and to present an interactive workshop.

  • Offer financial education and literacy programs: Collaborate with financial experts or partner with organisations like Picsa to provide educational sessions on topics such as debt management, investment planning, and understanding financial products.

  • Provide access to financial tools and resources: Offer employees access to financial management apps, online calculators, and resources that can assist them in tracking expenses, setting savings goals, and making informed financial decisions. 

  • Implement workplace savings programs: Establish employer-matched savings programs or retirement plans that encourage employees to save for the future and provide them with a sense of financial security.

  • Offer affordable loan options: Explore partnerships with responsible financial institutions or companies like Picsa to provide low-interest loans or emergency funds for employees facing unexpected financial challenges.

  • Promote employee wellness programs: Recognise the link between financial stress and overall well-being. Consider offering employee wellness programs that address financial health, such as stress management workshops or employee assistance programs.

  • Foster a supportive and inclusive workplace culture: Create an environment where employees feel comfortable discussing financial concerns and seeking advice. Encourage open communication and provide avenues for employees to seek guidance on financial matters.

By partnering with Picsa, a commercial financial health company dedicated to the financial health of low-income workers, you can help reshape the financial trajectory of your employees. Picsa is a partner to employers to help them support their workers’ financial health.

What does Picsa do?

At Picsa, we believe that all South Africans should have access to financial products such as emergency savings, short – and long-term investments, affordable funeral plans, and responsible financial loans. We tackle the financial needs of South Africa’s majority labor-intensive workforce through our value-for-money products, practical education, and meaningful rewards. 

Benefits of Picsa

We’ve been partnering with employers in the agricultural, retail, manufacturing, and hospitality industries since 2012. Our products are affordable and are designed to encourage positive behaviour change. Some of the benefits of partnering with us include:

  • Reduced administration: Picsa has leveraged technology to simplify the contributions and deductions process, thereby lowering the administrative burden on you as an employer.

  • Independent relationships: by letting us take responsibility for your employees’ financial health, the relationships you have built with your teams remain professional.

  • Productive employees: employee productivity will increase because of employees experiencing financial peace of mind, knowing that they are on their way to achieving financial health. Money and debt problems remain one of the leading causes of employee stress, which affects physical, emotional, and mental well-being. When employees feel in control of their finances and are confident in their ability to manage this area of their lives, their overall well-being will improve, translating into reduced absenteeism and higher productivity at work.

In conclusion, supporting your workers' financial health is a crucial investment that can positively impact their lives and your business. National Savings Month presents a prime opportunity for employers to make a difference. 

By partnering with Picsa, you can help reshape the financial trajectory of your employees. Picsa offers affordable financial products, practical education, and meaningful rewards, all designed to encourage positive behavior change and improve financial health. Contact us to learn more about our simplified wealth-creation solutions. 

Together, we can empower your employees to thrive both at work and in life.