At least half of the South Africans living in a big city would have to take a loan or use a credit facility to deal with an unexpected expense of R10000. Another 30% don't have any idea how they would handle such an urgent, immediate expense.This was revealed in the latest Old Mutual Savings and Investment Monitor, released yesterday.The study involved 1000 interviews with working people in major metropolitan areas, and examined their savings and investments.It also assessed attitudes to personal finances in general and savings in particular.Lynette Nicholson, Old Mutual's research manager, said the main concern was that less than 20% of breadwinners had a financial buffer or emergency fund sufficient to cover a relatively modest but unexpected expense."The rise of daily living expenses is squeezing disposable incomes and leading to a decline in savings," Nicholson said.About 41% of all the respondents reported saving less than a year ago.The pain is felt most acutely in those 40 to 49 years old. About 31% of those with debt in that age category are behind with their repayments.This group is also the most likely to belong to the "sandwich generation" - breadwinners who support both their children and their parents.But there is growing awareness about the benefits of saving and investing.About 60% now contribute to a pension, provident fund or retirement annuity, compared to 50% in 2012.The incidence of saving through unit trusts, particularly among higher earners, has risen steadily, from 10% in 2009 to 22% in 2015."What's also good news is that 18- to 23-year-olds are displaying a healthy attitude towards money management," said Nicholson."About 77% of them would use a R10000 bonus to pay off debt or invest."Another indicator of a strengthening savings culture is the marked growth in the number of working metropolitan households saving in stokvels.This has increased from 45% in 2014 to 58% in 2015 and is dominated by households in the R14000 to R19999 and the R40 000-plus household income categories.But Nicholson said these savings tools were not providing enough growth on savings."Some stokvels are not offering any growth on the savings they manage. In this case, the [Treasury's] tax-free savings scheme launched earlier this year is a solution that offers greater potential for growth, especially over the longer term."..