Saving money and other forms of wealth

By Joy Mukisa Ntege

The Private Education Development Network (PEDN) is determined to share financial literacy information this year.

PEDN is a Ugandan non-profit organization that has reached over 500,000 youth with social and financial education, life skills, business skills, youth mentoring and entrepreneurship training since 2004.

This month, we are sharing information on saving.

Scripture
The Bible says: “Dishonest money dwindles, but whoever gathers money gradually makes it grow” (Proverbs 13:11).

Proverbs 21:20 also states: “The wise store up choice food and olive oil, but fools gulp theirs down”.

What is saving?
Saving is keeping money and other non-monetary items such as food and water for future use.

Saving is not done once but over some time. You may have to sacrifice current luxuries to save for a better future.

Who can save?
Anyone can and should save. You do not have to be old or very rich to start saving. Start saving now with what you have.

Saving is an important skill for all of us, whether male or female, young or old.

Why do people save?
People save for 3 broad reasons:

– Personal use (for example saving for a friend or family member).

– Unexpected events (for example sudden illness or death).

– Future opportunities (for example degree, start a business).

What do people save? People save resources (monetary and non-monetary) such as money, time, food, electricity, and books.

Resources are things if well used can be used for more results. For instance, if you use your time well and study, you will pass your exams.

Some of the advantages of saving include:

1. Safety (How safe are the savings).
2. Access (How easy and quick is it to get the savings when needed).
3. Convenience and ease of use.
4. Interest earned on savings.
5. Guidelines on saving money
6. There are some guidelines for saving money.
7. Save as much as you can as soon as you can.
8. Save as you earn.
9. Try to save 10 per cent of your money; save the 10 per cent first before you spend.
10. If you save your money in a bank account, calculate how your money can grow over time.
11. Do not carry a lot of cash with you to avoid the temptation of spending it anyhow.
12. Look for opportunities to save money through bulk buying of non-perishables.
13. Pay off your debts.
14. Have a saving goal; you should have a reason for which you are saving your money within a given period.
    Ways people save. There are many ways people save but for this article, we shall focus on three ways of saving that is:
    – Saving in a box: You can start saving at home in a small box and after some time you break the box and get your money.
    – Form a saving group at school: You can save at school in a saving box with others with the guidance of your class teacher. Members can use a saving card and a ledger card to keep their saving records.
    – Opening a savings account with a financial institution: You can save by opening a savings account with a Bank if you are above 18 years old, or you can open a child savings account with the oversight of your parent or guardian if you are below 18 years.
    Below is an exercise for you on what you like and dislike about the three ways of saving money mentioned in this article.
    In our next article, you will learn about spending.

Reference: PEDN Empowerment for Girls Education (EGE) Manual and Journal.

The writer is the Programs Director, PEDN.