We all need to look at South Africa's national savings with concern and consider either compulsory savings methods or a greater effort to change savings behaviour while arresting debt.

South Africans save much less compared to other African countries, many of which have compulsory savings for income earners.

There is an ever-growing "Sandwich Generation" who are saving less and less. These individuals, aged between 31 and 49, are caring for children as well as elderly families. Most of their disposable income is spent on financial responsibilities and debt.

The government is trying to encourage savings and has introduced tax-free savings accounts.

However, the total contribution per year that qualifies for tax exemption is R30000 up to a maximum of R500000 per lifetime.

Any amounts withdrawn from these accounts cannot be replaced and still get the exemption.

The accounts are part of non-retirement savings and to maximis e on the tax relief, it is recommended to invest the maximum amount permissible every year for 16-and-a-half years and allow compounding interest to happen .

It is important to select an account with low fee charges.

The accounts would make excellent savings options for education if parents open one when a child is born or an infant.

Young people starting to save may also find these useful.

Although they will assist those in the habit of saving already, they do not change attitudes.

Mwandiambira is a financial planning professional and blogger on www.askmrg.co.za