There is no doubt that saving money is one of the essential aspects of building wealth and having a secure financial future – a fact many know but don’t put into practice for many reasons, some of them legitimate.

It is also a known fact that saving money gives one a way out of the uncertainties of life and provides those who practise the culture of saving with an opportunity to enjoy a quality life.

This year on October 30, Rwanda will, as it does every year, join the rest of the world to mark World Savings Day 2024, which is annually celebrated on October 31.

For Rwanda, it will be the climax of the National Savings Week 2024, in which the government sensitises citizens to try their best and save money to secure their own futures.

On October 24, the Ministry of Finance and Economic Planning announced the commencement of the National Savings Week awareness campaign- a period dedicated to activities aimed at sensitising the public about the importance of saving and investing for personal development and retirement, which ultimately helps to build long-term savings for national development.

The Savings week this year focuses on the theme "Save-Invest-Prosper,” where nationwide activities will be conducted to educate, raise awareness and promote different savings financial products with the aim of increasing access, uptake and usage of available savings products and services.

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MINECOFIN highlighted that mobilising savings is among the key priorities embedded in the 5-year second National Strategy for Transformation (NST2), pointing out that over the course of NST2 savings are expected to grow from the current 12.5 percent of the Gross Domestic Product (GDP) registered under NST1 to 26 percent of GDP by 2029.

Yusuf Murangwa, Minister of Finance and Economic Planning says that while Rwandans have in recent years improved in saving, there is a need for more efforts to promote the saving culture to reach desired levels.

"There have been improvements in terms of savings; however, it is not enough. We need to save more. It is through increased savings and investments that we can offset high interest rates, ensure access to low-interest credit, create individual and national wealth and Investments, and contribute to our dignity as a self-sufficient nation,” said

Why saving should be a habit

The Ministry said the culture of saving should be a habit among Rwandans, emphasising that embracing it is essential for citizens to safeguard their financial future, support their families, and contribute to the sustainable economic growth that the country needs to achieve the desired economic development.

Experts say that putting aside a sum of money to plan for one’s future is one of the surest ways to know that you can steer out of many hurdles and obstacles in life ahead and ensure the wellbeing of yourself and your loved ones.

Similarly, experts have also identified a wide range of barriers to the savings culture, among them debt, limited financial literacy, poor budgeting, lack of discipline and commitment to save, among many reasons.

Today, many will cite low wages, inflation, increasing prices, tempting credit facilities and other unforeseen emergencies which make it difficult for people to set aside money for future use.

Monique Mukundente, a businesswoman based in Kimironko, says that before she set up her business, saving was difficult, even though she was earning a considerable amount of money in employment.

For five years Mukundente, 40, started setting aside money to start her own business and quit her job in 2018 to focus on it.

"Many people were telling me that I had taken a huge risk but the three million I was able to save earned me another two million and I started out. Because I had a loan to pay, I was obliged to save, until my business becomes self-sustaining,” she says.

Taking a leap of faith

Today, Mukundente has seen her merchandise business grow three-fold, thanks to her effort to save and vision to become self-employed. It took commitment and self-deprivation for the first three years before she enjoyed extra profit to spend on other needs.

Just as there are many reasons to not save, there are equally many reasons to save and several ways to save with ease. Among the many advantages of saving is the long-term security it provides one with.

For Mukundente, employment was not guaranteed and indeed when the Covid-19 hit, the organisations she was working for laid off dozens of workers, but as luck would have it, her commodity business was among the essential ones which were not affected by the pandemic.

Saving is important mainly because the future is unpredictable, and financial emergencies can come up anytime but saving money allows one to create a safety net for future expenses as well as unplanned financial needs that might come along the way.

The more one saves, the brighter the future and the more peace of mind one has, because saving money is a step towards financial independence.

A tough call for many

The importance of saving money cannot be understated yet for many it remains a dream in the pipeline, regardless of whether one earns a lot or not.

Ernest Muhawenimana, a porter in Kimironko market says he barely makes enough to feed himself and provide for his young family of two and therefore saving is something he has not even considered in the near future.

Ironically, some of his fellow porters like Claude Nzabandora say they are able to save, buy a bicycle or start a small business for their wives, which goes to show that the saving culture differs from one person to another.

Experts say financial independence plays a critical role in making people self-sufficient, offers comfort and the liberty and authority to spend their money on the things they like, to live a fulfilled life.

At the same time, saving money enables one to take calculated risks because they have enough money to do so. They can start businesses, invest in ideas and explore other avenues to make more money and generate income.

Savings reduce stress

It is also a known fact that having adequate savings enables one to live a more comfortable life that is free from stress. Most people who save are not stressed about future goals like retirement or unexpected expenses related to healthcare.

Over the past two decades or so, the Government of Rwanda adopted different initiatives under the Long-Term Saving Scheme (LTSS), which is aimed at promoting savings saving culture, among them Ejo Heza, a saving scheme that targets salaried and non-salaried workers.

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Other initiatives include Umurenge SACCOs, RNIT Iterambere Fund, integration of financial education into school curriculum as well as several savings initiatives offered by banks, Microfinance institutions and insurance companies, among others. These initiatives are expected to improve the savings culture in Rwanda.

During the National Savings Week, people are encouraged to limit their expenditures and save more, limit debt and credit card usage, cut unnecessary spending and focus on saving money for future use.

Key activities being carried during the National Savings Week include financial Service providers showcasing their savings products, media talk shows featuring experts in finance, insurance, and capital markets, who will share insights on the importance of saving, available saving opportunities and platforms, and practical saving strategies.

Additionally, there will be mini-expos by financial service providers and a keynote address at the Umuganda. The official launch of savings week took place in Nyaruguru District on October 26, 2024.

Savings Week will conclude with the celebration of International Savings Day on October 30, 2024, dedicated to promoting savings worldwide.

About World Savings Day

World Savings Day, also known as World Thrift Day is a global event celebrated annually on October 31st to promote the importance of saving money.

The day is used to encourage people to reflect on their financial habits, set savings goals, and develop strategies for building financial security.

The World Savings Day was established on October 31, 1924, during the 1st International Savings Bank Congress (World Society of Savings Banks) in Milan, Italy.

The Italian Professor Filippo Ravizza declared this day the "International Saving Day" on the last day of the congress. In the resolutions of the Thrift Congress, it was decided that 'World Thrift Day' should be a day devoted to the promotion of savings all over the world.

In their efforts to promote thrift, the savings banks also worked with the support of the schools, the clergy, as well as cultural, sports, professional, and women's associations.

Beyond the day itself, the World Savings Day catalyses ongoing efforts to promote financial literacy and responsible financial behaviour. Its impact transcends the single day and inspires individuals to develop a savings mindset.

Every year since 2009, prior to the World Savings Day, Rwanda conducts a savings week awareness campaign aimed at promoting the culture of savings.

The week brings together stakeholders including government, financial institutions, private sector as well as non-governmental organisations who actively participate in activities aimed at creating more awareness about savings.