FIGURES from the National Institute of Statistics of Rwanda indicate that the number of Rwandans above 18 years of age with bank accounts rose to 20.6 per cent in 2011, up from 9.2 per cent in 2006.

Even though the growth was remarkable in that short time span, the figure is still low by international standards.

However, it is encouraging that a campaign to instill a savings culture among primary school students is already bearing fruit barely three years after it was launched, with the youngsters managing to save up to Rwf62 million.

Kudos to the Association of Microfinance Institutions in Rwanda (AMIR) and the Savings Banks Foundation for International Co-operation (SBFIC) for spearheading this noble cause.

Other financial institutions should borrow a leaf.

They need to aggressively reach out to the masses across the country and continuously come up with affordable products that will help make a difference in the lives of the people.

It is a fact that Rwanda’s financial sector has of recent seen a major overhaul with new products introduced to keep pace with the new era to simplify access to financing.

It is now easier to access credit than it was ten years ago, but the question remains; will it work in favour or against promotion of a savings culture?

The US financial woes that led to many foreclosures and the government stepping in to bail out major banks should serve as a warning shot to emerging markets that easy credit can be a double-edged sword.

The youth are particularly at risk with the new credit facilities where a high dependence on credit to finance their demands, most of them flimsy purchases to enhance their social standings, will likely lead them to drown in neck-deep debt.

The only viable solution to avert a financial mess in the future is to train the population in money management skills from a tender age.