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.

BREAKING DOWN '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. Good Student Discount

    An auto insurance policy discount available to young drivers ...
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. Savings

    6 Ways to Save Money on College Supplies

    Tuition and room and board are big expenses, yes, but the cost of textbooks and supplies can add up, too, unless you strategize.
  7. Savings

    Using Your 529 Savings to Study Abroad

    With studying abroad no longer cheap, families may find that a 529 plan college-savings account can fund educational travel. Tip: Read the fine print.
  8. Savings

    Which Gets Priority: Retirement or College Fund?

    On a tight budget? Wondering which to contribute to – your retirement or your kid's college fund? Here's expert help on how best to allocate your savings.
  9. Credit & Loans

    Why Fannie Mae And Freddie Mac Might Be In Trouble

    Fannie Mae and Freddie Mac are under increased scrutiny as debates continue about conservatorship, share price, and profit allocations.
  10. Savings

    College Tuition vs. Investing: Is It Worth It?

    With the rising cost of college and questionable career prospects awaiting college graduates, some are wondering if a college education is still worth it.
RELATED FAQS
  1. Can I use my IRA to pay for my college loans?

    If you are older than 59.5 and have been contributing to your IRA for more than five years, you may withdraw funds to pay ... Read Full Answer >>
  2. Can I use my 401(k) to pay for my college loans?

    If you are over 59.5, or separate from your plan-sponsoring employer after age 55, you are free to use your 401(k) to pay ... Read Full Answer >>
  3. What are the best MBA programs for corporate finance?

    Opinions vary based on which publications you consult, but the best MBA programs for a career in corporate finance are at ... Read Full Answer >>
  4. For which kind of jobs is having Magnum Cum Laude most important?

    Having a magna cum laude degree is most important for jobs in the fields of finance, management consulting and engineering. ... Read Full Answer >>
  5. How does accrued interest work on student loans?

    Using private and federal student loans to finance a college education is a common funding strategy, but students are often ... Read Full Answer >>
  6. What advice has Tim Cook given to would-be business leaders?

    Billionaire tech tycoon Tim Cook appeared at an event to discuss leadership with the would-be business leaders of Duke University's ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Election Period

    The period of time during which an investor who owns an extendable or retractable bond must indicate to the issuer whether ...
  2. Shanghai Stock Exchange

    The largest stock exchange in mainland China, the Shanghai Stock Exchange is a nonprofit organization run by the China Securities ...
  3. Dead Cat Bounce

    A temporary recovery from a prolonged decline or bear market, followed by the continuation of the downtrend. A dead cat bounce ...
  4. Bear Market

    A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment ...
  5. Alligator Spread

    An unprofitable spread that occurs as a result of large commissions charged on the transaction, regardless of favorable market ...
  6. Tiger Cub Economies

    The four Southeast Asian economies of Indonesia, Malaysia, the Philippines and Thailand. Tiger cub economy indicates that ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!