Experts root for saving culture among youth

Pupils of Upperhill Secondary School, Githurai Primary School, Moi Avenue Primary School and Mwihoko Primary School at the launch of Global Money Week at Crowne Plaza Hotel on March 24, 2017. PHOTO BY GEORGE ORIDO

Experts are rooting for early financial literacy among children to help them develop a saving culture.

Speaking at the launch of the Global Money Week at a Nairobi hotel, Sacco Societies Regulatory Authority (SASRA) Chief Executive John Mwaka made a strong case for instilling a saving culture in children, saying setting aside about Sh20 a day would amount to Sh7, 800 a year.

He urged the youth to save more and spend less on non-essentials.

“We are proposing that financial literacy be introduced in our schools as part of the curriculum,” said Mr Mwaka.

Retirement Benefits Authority Corporate Communications Chief Manager Rose Kwena challenged Kenyans to use the Japanese model which puts a lot of emphasis on saving.

She said a saving culture and prudential family spending is the key to success.

“Children need to be involved in budgeting at home so they may differentiate between needs and wants,” she said.

“They need to know that they need not demand new shoes just because they want variety.”

The meeting heard that group merry-go-rounds, also known as Chamas, today command a capital base of about Sh90 billion.

Schools were also urged to form savings clubs to ingrain the culture of saving in students. During this year’s Global Money Week celebrations, Central Bank of Kenya (CBK) is emphasising the importance of financial awareness, and promoting and encouraging young Kenyans to become more proactive in reshaping their financial future.

 CBK plans to reach 65,000 children and youth by organising various activities between today and Friday through financial literacy awareness sessions.