Monthly Archives: January 2021

Rose Miller, Head of the JN BeWi$e Financial Empowerment Programme, says that as the world welcomes 2021, many Jamaicans are looking carefully at their finances with the hope that this year will be more prosperous than the last.

She noted that one of the big questions on some people’s mind is whether they should focus more on saving or investing in the New Year.

“With the economic and social challenges that accompanied 2020, due to the COVID-19 pandemic, many persons are looking to make changes with how they manage their money in order to safeguard and build their wealth,” Mrs Miller said.

She pointed out that if persons are wondering whether they should save or invest this year, the answer depends on their goals, timeframe and overall financial situation.

The JN Foundation grants manager explained that saving is putting money aside, bit by bit. “You usually save up to pay for something specific, like a holiday, a deposit on a home, or to cover any emergencies that might arise, like car repairs,” she said.

Mrs Miller further noted that saving usually means putting money into cash products, such as a savings account in a bank or building society.

Conversely, investing is taking a portion of your money and trying to make it grow by buying financial instruments that are expected to increase in value. “For example, you might invest in stocks, property, or mutual funds.”

Who should save?

She pointed out that when it comes to saving, everyone should aspire to build an emergency fund. The general rule is to have savings of at least three to six months’ worth of living expenses; including rent, food, school fees and any other priority items you would normally budget for each month. This emergency fund should be in an account that is easily accessible.

“Your emergency fund means you have a financial cushion if something goes wrong.”

Mrs Miller said once persons have built an emergency fund, they can now shift their focus to other financial goals, including a deposit on a house, a wedding or a trip. “It’s a good idea for them to continue saving at least 10 per cent of their income each month or as much as they can afford,” she advised.

Mrs Miller said the only time persons shouldn’t save or invest is if there are other pressing needs, such as getting their debts, especially high interest rate debt, under control.

Are you ready to invest?

“Whether or not it makes sense for you to invest depends on your goals, specifically if they are long, short, or medium-term,” she pointed out.

She explained that short-term goals are things you plan to do within the next five years, while medium-term goals are plans you hope to accomplish within the next five to 10 years.

“Longer-term goals are ones where you won’t need the money for ten years or more,” Mrs Miller said.

Short-term goals

She noted that for short-term goals, the general rule is to save into cash deposits, like bank accounts. “The stock market might go up or down in the short-term and if you invest for less than five years you might make a loss,” she advised.

Medium-term goals

For the medium-term, Mrs Miller said while cash deposits might sometimes be the best answer, it depends on how much risk a person is willing to take with their money to achieve a greater return.

“For example, if you’re planning to buy a property in seven years and you know you’ll need all your savings as a deposit and don’t want to risk your money, it would be safer in a savings or fixed deposit account,” she recommended. “The latter would provide a more favourable interest rate and would allow you to earn returns ahead of inflation.”

On the other hand, Mrs Miller said if an individual has more flexibility with their funds, and is prepared to take some risk with their original capital they might consider investing to try and achieve a greater return than would be possible by saving alone.

Long-term goals

The JN Foundation grants manager noted that for longer-term goals, a person may want to consider investing, because inflation can seriously affect the value of cash savings over the medium and long-term.

Mrs Miller said the stock market tends to do better than cash over the long-term providing an opportunity for greater returns on any money invested over time.

“You can lower the level of risk you take when you invest by spreading your money across different types of investments. This is called diversification.”

She pointed out that as the below table suggests, most persons will have several goals with different timescales, which means that they will have to do some saving and some investing.

“That is why it is important to look carefully at your goals and make a plan. Talk to a professional if you are not sure how to proceed,” she advised.

GOAL	SITUATION AND TIMESCALE	SAVE OR INVEST
Buy a new car	You need a new car within two years	Save
Put down a deposit on a house	You’d like to move into your new home in three years	Save
Pay for your wedding	You will be getting married in five years	Save
Have a comfortable retirement	You’ve just turned 30 and you’d like to retire at 65	Invest

Two schools located in St Catherine and Westmoreland are the most recent educational institutions  to benefit from infrastructural  work,  through the X-Marks the Spot initiative, a School Crosswalk Road Safety Campaign, being implemented by the JN Foundation, in collaboration with the United Nations Children Fund (UNICEF) and the ABERTIS Foundation.

Onyka Barrett Scott, general manager of the JN Foundation, said that the upcoming work will include the erection of signage for bus lay-bys, pedestrian gates, and the widening and paving of sidewalks and painting of the crosswalks at Bridgeport High School in St Catherine; and Llandilo School of Special Education in Westmoreland.

“We are excited about these two projects, which will make it safer for students when they traverse the areas,” she said, explaining that the work should be completed by December.

“When these children return to school for face-to-face classes, they will be returning to a safer environment,” she said.

On completion of the project, the schools will join the list of 29 schools which have benefitted from improvement to their pedestrian crossings, signage or general road safety related improvements in 2020.

Ferncourt High School in Claremont, St Ann is one of the schools that benefitted from the campaign. Marissa Johnson-Howell, Dean of Discipline at the school, said the upgrading of the cross walk was welcomed, as its now safer for students.

“Road safety is of paramount importance to the care and protection of our students and members of staff. We are very appreciative of the JN Foundation’s initiative to paint a pedestrian crossing at the point of entry for students to access the main campus and look forward to their continued support in providing a safe and secure environment for our stakeholders,” she pointed out.

Mrs Barrett Scott stated that the aim of the School Crosswalk Campaign is to encourage advocacy and discussions about road safety in schools and households

Hazard Primary School in Clarendon was the first school to be upgraded under the campaign. The educational institution benefitted from the erection of: signage for bus lay-bys, pedestrian gates, the widening and paving of the sidewalks.

The campaign was informed by a Child Road Safety Assessment Report commissioned by the JN Foundation, which provided the baseline data to improve the safety of children on roads, particularly near, or on their way to school.

The research identified specific schools and zones where children were most vulnerable to incidences of road traffic crashes, injuries, and fatalities. These areas required specific infrastructural and/or safety interventions, both at the physical and social levels.

Since the start of 2020, 22 children have lost their lives on the roadways. Additionally, an innumerable number of children continue to suffer from life-altering injuries, which are a direct result of traffic crashes, within 100 metres of school zones, during the past decade.