WHY IT IS IMPORTANT FOR A YOUTH TO HAVE AN ACCOUNT IN THE BANK

 A certain youth said he does not need to have an account in a bank. From a financial literacy perspective that is a heavy statement. In a nation where over 70% of the population is below 30 years, it is important to amplify the importance of financial literacy training. This is because the youths are the leaders of tomorrow and if their mindset towards money is wrong then the country is in trouble. I read a university publication where university students were being warned about the dangers of drug abuse and gambling.  This is an age group that is wired to spend on unplanned ventures than other age groups. This is because their risk appetite is high. Many youths are enticed to get rich schemes and they even borrow from loan sharks to fund their ventures.

It is important for a young person to open an account in a financial institution regulated by Bank of Uganda so that their funds are safe . Banks have professionals who can advice the customers on the best way to utilize their funds. In addition banks promote digital literacy and therefore if a customer opens an  account his or her account is linked to the phone so that they can access funds any where they are. More still when a youth uses their account well they can qualify for a student loan unlike their colleagues who have no accounts in the bank. The savings culture of a youth plays a critical role in enhancing the future of the youths. More still a youth can save funds at a nearby agent and this reduces time and transport costs incurred by the youth.

Safety is another important factor why a youth should save funds in the bank. Banks are regulated by Bank of Uganda and therefore they have a duty of protecting customer deposits. There are many other ways of keeping money but saving in a bank reduces the risk since a number of youths have lost money in some unregistered groups across the country.

HOW TO PROMOTE SAVINGS AMONG THE YOUTHS

1.It starts at home

2.Invest in personal growth

3.Save as you earn

4.Learn to live within their means

5.Learn how to budget

6.Visits to banks

7. Entrepreneurship skills

8.Banks should ease account opening procedures for students

9. Promotion of investment clubs

Financial literacy is very important among the youths who form the majority in the country . When a youth asserts that they do not need an account in a bank it raises eyebrows on the financial destiny of the future leaders of the nation. That is why financial literacy training should be amplified.


Phillip Kiryowa

Personal Finance Coach

Advanced Empowerment Link

+256752615916

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