Young people stop spending and start saving

Mar 24, 2017

“Most youth do not know the use of saving, relevant bodies and parents need to sensitise the young people to save and learn to live within their means...

A survey conducted by Uganda retirement benefits regulatory Authority has revealed that 80% of the young people in Uganda are poor at saving and live beyond their means.

"Instead of saving, the young people are relying on loans as a source of ready cash to spend on objects of their desires. Young people these days love buying expensive gargets, going for holiday with friends and buying so many fancy things which do not contribute to the creation of wealth," says the study.

According to the study, young people are not saving because they think old age is far away from them, most of them have misplaced priorities, some do not have sufficient funds and many have low trust in the financial sector.

"Today's youth run away from saving out of the misguided belief that you need to earn a lot to save. We are calling them to start saving now because if you have not adopted a savings culture, you may never have enough to save," said David Nyakundi Bonyi, the executive director of URBRA.

Nyakundi says that saving some money now is the best way to secure a comfortable future. He adds that saving whatever amount of money on a regular basis helps one become financially independent and be able to face unforeseen expenses and emergencies.

He calls upon all the youth in informal employment to adopt a saving culture.

Asked why young people restrain from saving, Joan Kiwalabye, the managing director of inspiring the youth, said that the youth cannot save because they do not know the benefit of saving now for a long term benefit. She calls upon all parents to encourage their children once they get employment to use their income responsibly.

"Most youth do not know the use of saving, relevant bodies and parents need to sensitise the young people to save and learn to live within their means. You do not have to buy a fuel guzzler if there are cheap cars," says Kiwalabye.

Why saving is important

If you save early, you will have a good life during retirement.

Incase a family member develops a health issue, or get a car accident, if you are not prepared, you might not be in position to help, but with your savings, you will not have to become another victim of an emergency.

In case you get hurt or lose your job, you have something to help you.

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