YOUTHS SHOULD BE ENCOURAGED TO FORM SAVINGS GROUPS TO BENEFIT FROM FORMAL FINANCIAL SERVICES

 Over 70% of Ugandans are below the age of 70 years . The youths have a lot of potential and are the future of Uganda. For the last 5 years I have been involved in grassroot financial literacy training that targets equipping knowledge ,skills and attitudes among the youths in relation to managing their finances. Financial literacy starts with responsibly managing personal finances. One of the key lessons that I have picked up during the financial literacy training is that some youths lack the knowledge and skills of handling their money effectively.

There is a particular youth who lost his laptop to a loan shark after failing to pay the loan. Had this youth belonged to a savings group he would have been cushioned . Many youths up to university level live hand to mouth. This means they are vulnerable to external shocks .Many have no bank accounts in formal financial institutions and the little they possess is normally spent without a budget. This exposes these youths to financial stress. The increase in mental health issues is related to financial stress. In fact many university students find it hard to cope with the cost of living and this affects their studies. 

What can be done about this state of affairs? The youths must be trained to start investment clubs so that they diligently save for their future. Why should a university student justify that they do not need an account in the bank in this era of modernization. Some youths assert that they will only save after getting jobs. The question to ask isn't this too late? In financial literacy training we advocate for saving as soon as you earn. The concept of pay yourself first should never be ignored by the youths. It is not about what one earns but the discipline to save before spending. It is also a known fact that people who save as a group develop faster than those who save individually. We have a lesson to emulate from Kenya about collective investment schemes which have changed the lives of so many people.

Collective investment schemes show us the importance of pooling resources together and make a huge difference in the lives of the individual members . Investment clubs build the leadership potential of the members. I know of a group of university students who formed an investment club and today it is worth billions of shillings in assets. This can be replicated to so many other youths. Luckily financial institutions such as Equity Bank are at the forefront of providing free financial literacy training and many youths have started their own businesses in a generation where formal jobs are scarce. Statistics show that Uganda's universities graduate over 400,000 students per year. The question is where are all these absorbed? The government has introduced a number of initiatives aimed at helping the youths to find access to finance such as Parish Development Model. The question is, are all youths involved in these services?

For individual and corporate financial literacy training contact :

Coach Phillip Kiryowa 

Personal Finance Coach( CPC)

Certified Master Trainer, Bank of Uganda 

Founder, Advanced Empowerment Link

0752615916


For Financial Freedom and Sustainable Enterprises

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