By John Kusolo
Kampala, Uganda: -Banks around the world are gearing up to celebrate the World Savings
Day, also known as World Thrift Day. It is celebrated on October 31 every year. It highlights the necessity of saving for the future.
There are many reasons why one would need to save, including for retirement, education, property purchase, marriage, etc. It is also good to be prepared for unforeseen circumstances and save, even if you have no plans for the money yet.
In certain situations, saving has been a lifesaver as it helps to overcome sudden unfortunate situations.
It is from the above background that Diamond Trust Bank Uganda engaged Media
practitioners on the value of saving though organizing a financial literacy training in Kampala.
While giving his opening remarks during the Financial Literacy Training organized
by Diamond Trust Bank Uganda, the Executive Director Mr. Karuiki Maina told journalists how blessed they are with a talent and should optimize resources and utilize them.
“You have several opportunities as journalists but you should derive value out of your networks, “he advised.
Media has a major role of promoting financial literacy in Uganda.
Some of the key questions asked include; What are causes of financial literacy among people in Uganda? What are the solutions put forward to reduce financial literacy in Uganda?
Describe the different strategies put forward to fight financial literacy in Uganda.
What are the roles of the media in promoting financial literacy in Uganda?
Although Uganda’s banking sector has grown rapidly over the past three years, the financial system remains narrow and shallow.
According to the keynote facilitator and speaker, Mrs. Tilda Nabbanja Turyagyenda the Bank of Uganda Head Financial Literacy, Finance and Investment Practitioner, Financial Literacy Master Trainer and Social Entrepreneur, you cannot compare your health to others hence you are in charge of your finances.
She advised journalists that Financial Literacy is all about having the knowledge, skills and confidence to manage their finances well considering one’s economic and social circumstances.
This reality is the basis to focus on transforming saving discipline so as to create a firm foundation for financial health.
Mrs. Turyagenda revealed that only 8.6% can sustain their lives after loss of income meaning the rest (91.4%) end up suffering according to the 2020 capability survey of Bank of Uganda.
“Some of us just keep money because we have no goals to achieve,” she noted.
Also, 43.9% save to consume while 0.7% save for leisure activities, 21% save to meet goals, 80.7% start a business with their own savings.
Financial Literacy is having the knowledge, skills and confidence to run your enterprise/investment.
47.4% use own savings to grow business while 51.5% say lack of finance is a key challenge to business growth.
The above is the country’s current reality according to Uganda’s National Household survey 2019/20. Ugandans were advised to change their mindset on saving.
Personal finance management focuses on management, insurance, financial service
providers, savings, investment and retirement. You should eat your money with a plan. Saving discipline will help you acquire financial health.
The following is key for a successful saving culture according to Mrs. Nabbanja
from Bank of Uganda;
Plan for all your money: Persist regardless of the battles you have in your life.
Use a budget to plan for all the money you have been blessed to receive.
Make yourself a monthly budget.
She noted that that high earners in Uganda waste their money while the low
earners save.
Prioritize: Spend on the things you want first before the things you need.
Save first before you spend. Ugandans normally want to save what is left yet it
gets finished at times.
Pay back all borrowed money in time.
Invest in ventures that you understand well enough and monitor.
Do much research as possible.
Start Investments with your saving and only borrow to start your investment.
Look for risk free investments.
Insurance helps you manage the risk of losing your hard-earned investment or property.
Deal with only supervised/Regulated financial institutions.
Banks are the safest place to keep money.
Do not forget to plan for old age.
Live a balanced life. Be mindful of decisions made that are financial, relational, political, physical, intellectual, spiritual etc.
Family financial health starts with your nuclear family, then extended family and later friends.
However, much work remains to be done to increase the depth and breadth of the system so it can contribute to economic growth and poverty alleviation.
Most Ugandans indicates they still lack most of the necessary skills and knowledge required to manage their finances well. Most of the business owners do not keep
records; they have limited access to financial services and are mainly dependent on unregulated financial institutions MFIs, SACCOs, VSLAs, RSPEED, USAID, FSDU, AMFIU among others which has promoted a savings awareness campaign.