In recent days, there have been heated discussions about the savings culture in Kenya. Some say that Kenya’s savings culture is at its worst. Some say that Kenyans are not saving because they have nothing to save.
What many people have failed to realize is that developing a savings culture is not a walk in the park. It is not something you can just wake up and decide to go on with it. Savings is not just about taking money and putting it aside.
Savings is something that one has to commit to repeatedly engage in until it becomes part of them until it becomes a habit. Savings, therefore, is a habit and one has to sacrifice through sweat and blood to walk the journey.
There are three major questions that you have to ask yourself before you can start the savings journey.
Why do you want to save?
You must have a reason to save. Something must be your benchmark and must work as a motivation behind your wanting to save. Therefore, before saving, have a plan that contains something that you want to save for. Is it school fees for your little ones? Is it to cushion you from the fangs of the skyrocketing costs of health?
Where do you want to save?
Where you want to save will be determined by the reason why you want to save. For instance, if you want to save for your kids’ education, the best place to save will be in a bank. Open a bank specifically for kids, say from UBA Bank Kenya. They have a product called U Care that will help you out. You can also choose to save in an investment, in this case, money market funds.
When do you want to save?
Developing a savings culture needs timeliness. If you have a poor sense of time, saving is not your thing. Saving is about discipline and knowing when you should start and sustain your savings is part of that financial discipline process. Know when you should start savings and the intervals that you will be saving; weekly or monthly.
Talking of savings, they say you cannot teach an old dog new tricks. Experts have said, time and again, that instilling a savings culture in your kids at an early age is one of the best investments you can ever give them.
UBA Bank Kenya has a product called U-Care that helps you save for your kids as you earn interest of up to 3 percent annually. The product is such that you open an account for the little one but you are allowed to access and withdraw the cash quarterly.
The UBA U-Care account has the following features:
- Opening and a minimum balance of 1,000 shillings
- One withdrawal per quarter
- Interest on credit balance
- Mobile and internet banking options are available
- Monthly interests are forfeited after three withdrawals in the quarter.
When you open a UBA U-Care account for your kid, you get the following benefits:
- You get access to competitive interests earned
- You will have easy access to products such as mobile and internet banking, loans, and remittances
What are the requirements for you to have a UBA U-Care account for your kid?
- You need 2 passport-size photographs of a parent/guardian and that of the account holder.
- You need an original ID or Passport of the parent/guardian
- You will also need to present a dully filled and signed form.
Why should you save for your kid? You ask yourself this question. The future is always uncertain. We may know the present but what happens the next minute is hidden from us, human beings. All we do is prepare for the future.
Saving for your kid ensures that their future is well-taken care of. If you are saving for their school fees, as other parents will be running up and down, scratching their heads and beards, you will be smiling to the bank because you already guaranteed the future of your kid.
Saving also makes sure that, should anything happen to you, the future of your loved ones is guaranteed. They will have something to hold on to and to push them along. Saving for your loved one, therefore, means that you care.
Dear you, the best day to start is today.