IT IS IMPORTANT TO CELEBRATE THE INTERNATIONAL WORLD SAVINGS DAY

 On 31st October Uganda joined the rest of  the world to celebrate the international world savings day. It is worth celebrating this day because savings play a critical role in developing individual, family , community and national lives. Without enough resources society is characterized by distress and there is an increase in mental health and crime.  According to Uganda Bureau of Statistics research 3% to 5% of Ugandans save their monthly earnings on a regular basis has a lot of implications on the welfare of Ugandans.

Some of the questions to ask are, where do most of Ugandans save? What are the spending habits of Ugandans? Is there a lot of unemployment that prevents them from saving? During the Covid-9 and lock down period we witnessed two young men who burnt themselves because they could not cope up with life. If someone can end their lives due to lack of money ,then financial literacy training can not be ignored. The witnessing of so many jobless youths with a pale future in town shows us that we a grooming frustrated leaders who will do anything to survive. The recent increase in street crime can be linked to youth unemployment and the poor savings culture. 

The low insurance uptake which is less than 5% in the country is an indicator that Uganda's savings culture is still weak. At a savings rate of 23% Kenya fares far better than Uganda in terms of saving. With a youthful population that is more than 70% below 30 years it is imperative to amplify the message of financial literacy as a conduit for increasing savings at an individual and national levels. With an increasingly volatile international economy, domestic resource mobilization becomes even more important since even many Non Governmental Organizations are struggling to survive.

To show how important the message of financial literacy is, many dreams of young people who are the leaders of the future have been shattered because of lack access to school fees. Many young girls have been forced into early marriages as an economic alternative. So many able bodied young men have resorted to gambling and drug abuse as a means of escaping life's harsh realities . To show how important financial literacy is important in Uganda, last year a number of Ugandans lost their hard earned money to a company that closed and vanished with their money after promising them abnormal returns. Some of the people invested their pension funds and the scenes shown on media were depressing. 


The above state of affairs is just a glance on the importance of highlighting why we should create awareness about financial literacy and enhancing a savings culture right from an individual, family and national level.

IMPORTANCE OF SAVINGS 

1.Encourages financial freedom

2. Preparation for emergencies

3. Realisation of goals such as building a house 

4.Dignity of people 

5. Pooling of resources promotes economic growth


As we celebrate the International Savings Day it is worthwhile to highlight why developing a savings culture in society is key.


Phillip Kiryowa 

Personal Financial Coach

+256752615916

For Financial Freedom and Sustainable Businesses

For inquiries


Comments

Post a Comment

Popular posts from this blog

A SAVINGS PLAN CAN AID IN FINANCIAL ADVANCEMENT

 I remember during the Trainer of Trainers training conducted by Bank of Uganda we were encouraged to develop a savings plan. This was a key development because without a plan we may live in financial darkness. In my years of providing financial literacy across the country especially youths I have observed that the intangible practices that may be undermined play a big role in the big picture. I have been asked a question, "how can one save yet their needs exceed their income?. It is a tough question but the best practice remains that even in the hardest of circumstances we should prioritize saving .This is because we do not know what the future holds. As humans we forget so fast. Who remembers during the lock down of Covid-19 when people were not working. Life was extremely tough. It was an opportunity to reflect about the importance of savings during good times. A savings plan enables a person to determine why they are saving. It could be for school fees, buying a plot, a car an
Read more

THRIVING AMIDST UNEMPLOYMENT

 Ask any graduate what their worst night mare is and they will inform you that lack of access to a dignified employment opportunity is a big hurdle. Over 70% of Ugandans are below the age of 30 years of age. There are very many reasons why the unemployment rate needs to be addressed. Uganda has over 30 universities and all universities graduate over 300,000 graduates per year yet the formal sector produces on average 70,000 jobs. This mismatch is an indicator of the frustrations that the young people face. It was on media last year when I saw a group of able bodied youths who wanted to beat up staff of a sports betting company for failing to pay for their "Return on Investment" in Bugiri District. Iam not saying that all youths are involved in crime .What am trying to point out is that the probability of a youth without a job being involved in crime is high( after all there is a saying that an idle mind is a devil's workshop). Just this year there was youth who was killed
Read more

WE CELEBRATE GRADUATION BUT AFTER THAT WHAT NEXT ?

 Uganda is officially dominated by young people. Over 50 %of the population are youths. With a high population the job market also shrinks yet people need to survive. It is the means of survival that create social pressure. The unemployment dilemma in the country can be dissected from different angles and each person or all stakeholders have a critical role to play.  Universities and other institutions of higher learning produce over 300,000 graduates per year. The job creation rate is about 70,000 jobs per year. This means that the job market is narrow. It is a common sight to see over 100 applicants for one job. This is a signal that something drastic must be done to change this trajectory. Development partners such as government, private sectors and donors such as Master Card Foundation are playing a critical role in addressing youth unemployment. In fact this suggests that fight against youth unemployment must be multifaceted.  During graduation season it is justifiable for any stu
Read more