Statistics show that only about 34% of young people have active saving plans. A low figure compared to the total youth population of 75%
31st October every year, the entire world marks world savings day. This celebration couldn’t have come at better times when most of the world is struggling financially.
This year, the beneficiaries targeted for world savings day in Kenya were young people. It is alarming the rate at which young people have completely shied away from the culture of saving.
We could blame it on the lack of jobs since inevitably, young people being the largest group among the Kenyan population also make up the largest group of unemployed citizens.
However, the main reason is that they have not been made aware of why it is important to save. For those who save, mostly target savings for short-term schemes, you know cash they can easily access when need be. Otherwise, the money they get is channeled toward recreational activities, partying, shopping, gambling, and such.
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There should be education among young people on why it is important to save. For one, it is the fact that saving ensures financial stability for oneself.
You know you will have no dependence on anyone with your personal savings plan. Besides financial stability, it gives a strong footing, especially on ‘sunny’ or ‘rainy’ days. Sunny days are those days you feel like you want to appreciate yourself, say you take yourself out on a mini vacation, or get yourself nice things. After all who doesn’t like nice things?
Rainy days are those days when a crisis that was not prepared for happens. Say your rent date is due and you have not been paid yet. That rainy day kitty you keep saving will come into play as the day’s hero.
Saving also benefits the country’s economy as a whole because of the steady stream of income in banks.
In short, young people should be taught why it is relevant to save, every day. That notion that saving is for old people should be done away with. Hence, we need to thank Filippo Ravizza, the father of world savings day after he declared the last day of the first international savings bank congress as world/international savings day.