Savings crucial amid economic breakdown

By Nicholas Opolot

Money is such a huge deal because it greatly impacts on our livelihoods and standard of living. Saving is a key aspect which needs to be taught to the youths, in order to improve their financial capacity.

Globally the economic outlook is sluggish, our own economy is affect- ed by a decline in consumer demand, private sector credit is low and the low, global, commodity prices are cited in the 2017 economic outlook report by Price Waterhouse Coopers.

Consequently, this chain of events has reduced public consumption, tightening the grip on money circulation. According to the current World Bank country re- port, inflation spiralled to 8.5 percent from 4.8 percent last year, and the Bank of Uganda says this is due to heavy depreciation of the local currency.

This means that in- dividuals have to make cuts on their personal expenditure. It is thus necessary that the youth cultivate a stringent sav- ings culture, which will enable them achieve sustainable growth in order to stay afloat in this fragile economy.

The 2011 Uganda Population Report of 2011 indicated that the country’s population below the age of 24 years stands at 74 percent.

This is one of the highest dependency ratios in the world, negatively impact- ing the supply chain, which is driven by consumerism. A decrease in the de- pendency ratio through cultivating a savings culture among the youth, if achieved, is likely to impact positively on economic growth, creating robust opportunities for Uganda. So how exactly does one achieve a successful savings culture?

Firstly, we need to understand that saving not only means fi- nance management but crucially a mechanism where one guarantees economic stability which breaks the vicious circle of poverty. It empowers the youth and gives them a renewed sense of determination, courage and hope especially those attaining the working age.

The onus is upon financial institutions to educate the youth on the benefits of saving, money matters and other financial awareness initiatives. These outreach efforts expose the youth to different issues related to banking thus improving savings,

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