Ugandans saving blindly – new report

What you need to know:

  • The findings also disclose that that seven out of 10 people save daily, indicating that saving jars provide a saving solution for daily income earners majorly

Most of the money Ugandans keep aside for the rainy day is eventually spent on school fees, starting a small business and buying school requirements, a new study reveals. 
On the top 1o list of what Ugandans save for also includes household appliances, home use, buy dream phone, basic needs, pay off a loan, upkeep of children , uncertainties and functions, all in that specific order, according to Be Money Wiser (BeMW) which conducted the study.
 The report by the social enterprise institution seeking to create a financially, knowledgeable, disciplined and prosperous society, in its report titled: Saving with piggy and eggy banks for sustainable financial health and financial inclusion indicates dominance of children needs such as school fees and school requirements on the earnings currently being eroded by inflation.

Although the report in its assessment notes that the pressure emanating from the aforementioned demands is “good” in as far as compelling parents/guardians in embracing some sort of saving culture, the shocking aspect documented in the report’s findings is the fact that considerable number of Ugandans save without a purpose—save blindly   
“However, it’s noticeable that some respondents seemed not to have a clear saving goal or with responses like Unclear savings goal. This finding is an indication that as much as saving with a goal should be an outcome, some beneficiaries are yet to grasp saving with a purpose,” reads the reports launched last week during the unveiling of the institution new money saving jars.

The findings show that saving more so through piggy and eggy banks is a mandatory financial literacy approach given that children and any person regarded with inadequate saving habit can benefit from the approach.
The findings also disclose that that seven out of 10 people save daily, indicating that saving jars provide a saving solution for daily income earners majorly. The findings further indicate that all respondents agree that their savings discipline has improved with the use of saving jars (Eggy and Piggy banks), a sign that this model can be adopted to reach a wider population
With enhanced awareness and advocacy, financial institutions can use the piggy and eggy banks to improve savings on bank accounts and loan repayments especially by the daily income earners.

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