Monthly Archives: November 2020

Rose Miller, grants manager at the JN Foundation, is renewing the call for more Jamaicans to get serious about building an emergency fund.

Speaking against the background of World Savings Day, observed globally on October 31, she stated that the COVID-19 pandemic is a vivid example of why an emergency fund is such an important financial asset.

Mrs Miller, who also heads the JN BeWi$e financial empowerment programme, said in a crisis, such as the coronavirus pandemic and its ensuing economic fallout, an emergency fund is the first line of defense against debt and financial ruin for individual families and businesses.

“If more Jamaicans were putting aside money in ‘a rainy-day fund,’ more of us would be able to withstand the economic effects of this crisis,” she said.

Economic analyst, accountant and author, Dennis Chung, agreed with Mrs Miller, adding that savings could help to save the economy from the full force of COVID-19, as most Jamaicans would be able to maintain their standard of living for much longer.

“If more people were saving, for example, 20 per cent of their salary, each year, and they were working for about ten years, then they would basically end up with 200 per cent of their salary,” he said.

Mr Chung said this means that, even if they found themselves out of a job because of the global pandemic, they would not have to worry about the mortgage or the car payment, for at least a year or more.

“Therefore, you could cut back on your spending and focus on the essentials of life, without significantly affecting your standard of living, your credit rating or your children’s schooling,” he informed.

The economic analyst further noted that, this level of saving would also have a positive impact on the country’s economy.

“Because it means that the government probably wouldn’t need to be sending out so many care packages; people would not have late loan payments, which again has a domino effect on the banks,” he pointed out.

He noted that the same concept is applicable to local businesses, because if a business has enough savings or reserves in place then it means that it has time to adjust to certain shocks.

“People must save to ensure that they will have enough funds to adjust more easily to whatever reality faces them. Adjustments actually do cost money; therefore, if you have a company and you don’t have that extra money put aside, then you don’t have the chance to adjust,” he pointed out.

Mrs Miller added that for those people who are still in a job, there is still time to build an emergency fund, even in the middle of this crisis.

“In uncertain times like these, many of us want to feel safe. Of course, the first priority is to stay healthy. The second is to make sure you and your family can survive financially. If you do not have a solid six-month emergency fund, you should now focus on saving as much as you can. The truth is no one knows when the next emergency will strike,” she said.

Mrs Miller also advised persons to avoid buying any luxuries for the time being; postpone making large purchases; and focus on building up their cash reserves.

“Save what you can…any windfall you receive, whether it is an incentive payment, or a government-issued stimulus cheque. You can even save the money you’re suddenly not spending on transportation, eating out, and other non-quarantine approved activities.”

“World Savings Day,” was started by the World Savings Banks Institute in 1924. Its objective is to emphasise the relevance of saving, with a particular focus on developing countries where a large percentage of citizens do not use the banks.

It is Not Too Late to Save For a Debt-Free Christmas!

As the country grapples with the onslaught of a global pandemic and its economic effects, the idea of merriment and festivity this Christmas season may be a distant thought from the minds of some Jamaicans.

However, despite how tumultuous 2020 has been and the lingering uncertainty which lies ahead, Rose Miller, grants manager at the JN Foundation, said that the holiday tradition is still on this year’s calendar, “whether we like it or not.”

“And the season still comes with its numerous financial responsibilities. Therefore, you still need to have a viable financial plan, to ensure that you keep your holiday expenses under control; and so that you do not start 2021 in debt,” she advised.

Mrs Miller, who is also head of the JN BeWi$e Financial Empowerment Programme, pointed out that it will be a difficult Christmas for many, particularly those who have lost their relatives, jobs or businesses, due to the COVID-19 pandemic. She noted that the recent heavy rains that have lashed the island, causing severe flooding in some communities, have further dampened the spirit of many Jamaicans, and has also placed them under increased financial stress.

“This means that careful and meticulous budgeting for the season is extremely important,” Mrs Miller informed.

The JN Foundation’s financial literacy expert, suggested that the first, and probably the most important step, is to set a Christmas budget. “If you have not already started saving for Christmas, you do not have a lot of time, but it is not too late. You still have about six weeks to go, and it is never late to get serious about budgeting your money,” Mrs Miller pointed out.

Set a Budget

She advised persons to sit down with pen and paper or use one of the many budgeting apps that are available on the Internet to help create their own budget and see how much they can set aside in time for Christmas Day.

“To begin your budget, make a list of family and friends you will be buying presents for and allocate an amount for each person. If you are hosting dinner, then consider how many people will be coming over and how much you will need to spend on food and drink,” Mrs Miller said.

She said persons should remember that there is a limit on the number of people who can gather in one place this Christmas season, due to COVID-19 restrictions. “This may very well be a plus for your pocket, as you won’t need to spend as much as you normally would,” Mrs Miller noted.

Work Out How Much to Save Weekly

“From there, you should be able to work out how much money you would need to put away from now until Christmas. For example, if you are planning to spend $40,000 on dinner and presents, you would need to save at least $8,000 a week for the next five weeks,” she said.

The JN manager advised that people should treat saving in the same way as they would a bill.

“Committing to saving a regular sum each month or week is more effective and would be more successful than simply saying you’ll save whatever you have left over after spending, which may be nothing,” she pointed out.

Try to be realistic, bearing in mind all that has taken place in 2020 and the continued uncertainty of the immediate future. It is better to commit to a manageable sum than to aim too high and give up, Mrs Miller pointed out.

Be Creative with Your Gift Ideas

To further cut down on how much you spend, you need to be creative with your gift ideas, Mrs Miller recommended. “Gifting does not have to be a spending spree,” she said.

She suggested that instead of rushing to purchase gifts, people should consider creating their own gifts using their skills. Purchasing or creating gifts that can be shared by more than one member of the household, instead of providing individual gifts, is another idea to consider.

“It saves time and money, as you don’t need to shop for every single person. And, very often, the gifts you create are not only less expensive, but they are more meaningful than the items you buy in a store,” she said.

Start Your Shopping Now!

Mrs Miller said start early. “Picking up Christmas essentials, such as gifts and decorations, when they are on sale can earn big savings.”

Take advantage of online deals and events, such as Cyber Monday and Black Friday.

“If you know what gifts you need to purchase, it can help you to pick up some items over a period, to help spread the cost; and save you the hassle of shopping in peak periods,” she advised.

Mrs Miller pointed out that there are also many ‘free websites,’ which allows persons to create their own cards, with family photos and videos. “There are many ways to save a dollar or two, you simply to be creative; and, most of all, be determined not to overspend for the holidays,” she advised.

Three charity organisations located in Cornwall, Middlesex and Surrey have benefitted from welfare items donated by staff members of The Jamaica National Group.

The three charities are the St Elizabeth Early Childhood and Therapeutic Centre in St Elizabeth; Children First Agency in St Catherine and the Marie Atkins Night Shelter in Kingston.

The charities received tins of basic food items and toiletries. Onyka Barrett Scott, general manager of the JN Foundation, said the initiative was implemented under Project 3000, with the goal to raise 3,000 cans of food to be donated to the charities.

“The members of staff were enthusiastic about participating in the project, as they knew that it would greatly assist the charities given that the pandemic has had a negative impact on the normal operations of organisations, such as these charities,” she related.

Madge Sanderson, centre manager of the St Elizabeth Early Childhood and Therapeutic Centre, stated, “in this time of need, the contributions were a big help and the parents of the children were very grateful for the donation,” she said.

The centre, which caters to children with disabilities, has been experiencing challenges, given that ‘face-to-face interventions,’ have been suspended.

Mrs. Sanderson noted that some students were being catered to online, with the assistance of their parents.

Claudette Richardson-Pious, executive director of Children First, said the donation came at an opportune time, as the organisation was able to assist children and families who are adversely impacted by the COVID-19 pandemic.

“The donation has enhanced the nutrition of the families assisted; and we were also able to support some seniors, who were also in need,” she informed.

Mrs Richardson-Pious noted, “what was heartwarming was when one of the seniors shared with her that she received enough items, therefore she would be able to share them with her neighbour.”

Children First is a non-profit organisation, which is dedicated to improving the lives of Jamaica’s street children.

Tanya Wildish of the JN Foundation, who coordinated the initiative, stated that although some members of staff were working from home, they made a concerted effort to come into office to drop off their donations.

“That indeed showed the commitment of our members of staff to the drive to assist those who are in need,” she pointed out.

Staff members across the JN Group participated in the initiative and selected the charities to be assisted by registering their votes, based on an online survey, which was circulated shortly after the donations tins were issued.

Mrs Barrett Scott stated that the initiative will also be rolled out in Canada, the United Kingdom, the United States of America and The Cayman Islands, where The Jamaica National Group operates.