Saber Currency

AAA

DEFINITION of 'Saber Currency'

A proposed Brazilian currency that would be handed out by the Ministry of Education to 7-year-olds to be redeemed only for university tuition. Saber currency is a complementary currency that was proposed by Bernard Lietaer to help Brazilian schools offer more educational opportunities, regardless of a lack of available funds. A type of educational voucher, the Saber is intended to facilitate more learning opportunities for a larger number of students, without adding any new financial pressures to the economy. The planned Saber currency has three capacities:
1. The Ministry of Education allocates Sabers to the youngest students (for example, 7-year-olds) in schools in economically disadvantaged areas. The young students must choose an older student (10 years old, for instance) as a mentor, and pays the mentor with the Sabers. The 10-year-old then does the same, finding an older student to mentor him or her. Down the line, 17 year olds will have collected the Sabers to be used towards university tuition. Redeemed Sabers are reallocated to young students.


2. Children or adults who help elderly or handicapped individuals can also earn Sabers.


3. Certain laborers could elect to be paid in the standard pay for the job, or at a reduced pay plus additional Sabers, an incentive for parents of children planning on attending university.

INVESTOPEDIA EXPLAINS 'Saber Currency'

The word "saber" is the Portuguese (and Spanish) verb "to know." After Brazil privatized the mobile telephone industry, the country enacted a 1% tax allocated for educational purposes. When the Education Fund had grown to about 3 billion reals (US$1 billion), alternative solutions for its use were discussed, including the implementation of the Saber currency. A goal would be to provide a "multiplier of learning" to increase the number of students who can afford a college education in Brazil.

RELATED TERMS
  1. Complementary Currency - CC

    A currency used in combination with other currencies, such as ...
  2. Cost Of Attendance

    A figure provided by colleges and/or college financial offices ...
  3. Education Loan

    Money borrowed to finance education or school related expenses. ...
  4. Currency

    A generally accepted form of money, including coins and paper ...
  5. Exotic Currency

    A foreign exchange term for a thinly traded currency. Exotic ...
  6. Free Application For Federal Student ...

    The form that must be completed in order to qualify for any type ...
Related Articles
  1. Savings

    5 Ways To Fund A College Education

    You can go to college without going broke, but it may take an unconventional approach.
  2. Forex Education

    An Introduction To Complementary Currencies

    There are alternatives to national currencies. Discover complementary currencies and how they work.
  3. Investing

    Investing In Brazil 101

    Brazil is well positioned for future growth, and luckily for investors, it also has a very liberal investing climate.
  4. Investing Basics

    Why Country Funds Are So Risky

    High returns come at a price, but country funds may still be a good bet.
  5. Mutual Funds & ETFs

    Understanding BRIC Investments

    Brazil, Russia, India and China are becoming more popular for investing, but there is still plenty of risk among BRIC countries.
  6. Investing Basics

    Top Financial Planning Colleges: A Primer

    An overview of the top colleges for financial planners and advisors.
  7. Personal Finance

    SAT Vs. ACT: 6 Key Differences

    While there's some overlap in content, the ACT and SAT exams have significant differences that students should consider before choosing which to take.
  8. Personal Finance

    First Resume? Tips For High School Students

    Here's how to shape your school projects, babysitting and any other jobs you've had into a resume that will get you hired.
  9. Personal Finance

    GMAT or GRE: Is One Better for MBA Applicants?

    In prior years, those applying to an MBA program had to take the GMAT exam. Today, a growing number of universities accept the GRE as well.
  10. Personal Finance

    Which Degree Is Better For A Business Career?

    Business administration and finance degrees can both lead to good jobs. Finance builds more quantitative skills, administration gives broader training.

You May Also Like

Hot Definitions
  1. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  2. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  3. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  4. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  5. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
  6. Absorption Costing

    A managerial accounting cost method of expensing all costs associated with manufacturing a particular product. Absorption ...
Trading Center