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. Personal Finance

    Is a NYU Degree Worth the Steep Tuition Bill?

    The cost of attending NYU is above average, even for private universities. But research shows it can still be a good value.
  7. Personal Finance

    Columbia's Financial Aid Trumps Steep Tuition

    Despite its high tuition costs, Columbia University is surprisingly affordable for low- and middle-income students, thanks to its generous financial aid.
  8. Personal Finance

    At Harvard, Expect High Tuition But Generous Aid

    Harvard University might have one of the country’s highest tuition rates, but many students pay far less thanks to a strong financial aid program.
  9. Personal Finance

    Is An American College Education Still Worth It?

    The total cost of a university education continues to outpace inflation. For some degrees, that expense isn't likely to pay off.
  10. Personal Finance

    What Does "Magna Cum Laude" Mean?

    Magna cum laude is one of three Latin honors used by many academic institutions to recognize their best students.

You May Also Like

Hot Definitions
  1. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  2. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  3. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  4. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  5. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  6. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
Trading Center