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Understanding the importance of savings

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World Thrift Day…

By: M Ahmad

World Thrift Day, also known as World Savings Day, is celebrated every year on October 31, across the world, but in India, the day is celebrated annually on October 30. However, the common aim behind celebrating the day is to promote the importance of savings.

October 31 was declared World Thrift Day at the end of the first International Thrift Congress in 1924 in Milan. 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. Of course the idea of World Thrift Day was not born out of nothing. There had been some examples of days that were committed to the idea of saving money in order to gain a higher standard of life and to secure the economy, e.g. in Spain where the first national thrift day was celebrated in 1921, or in the United States. The word ‘Thrift’ itself means to use resources in a wise and careful manner so that we don’t end up finishing it all up in one go.

World Savings Day was at first an educational activity, at least partly. In 1928, the WSBI stated that saving was “a virtue and a practice which are essential to the civil progress of each individual, of every nation, and of the whole of humanity!” Correspondingly, the World Savings Banks Congress declared schools the most reliable ally in the field of teaching future customers. As they put it, thrift education was not only about “the usefulness and necessity of spending their money wisely and of fortifying themselves against the uncertainties and adversities of the future”, but also about “opposing and fighting everything which may be an obstacle to the practice of thrift”, such as gambling and lottery.

Saving money is a lesson which we learnt first from our parents in our childhood. However, it became more important in the latter phase of our lives as saving money is a necessity for every individual at a personal level. Also, as a responsible contributor to the country’s development, saving money is important for the country’s economic growth as well. Initially, people were made aware of the significance of saving money through the support of schools, offices, women’s associations, sports etc. The day gained prominence only after the Second World War when people evolved and started taking good care of their resources.

Savings revolution helps in promoting people’s saving practice and provides good support to small investors. It also helps in mobilizing funds to meet the needs of the country’s planned economic and social expansion. Saving money is important because it helps protect you in the event of a financial emergency. Additionally, saving money can help you pay for large purchases, avoid debt, reduce your financial stress, leave a financial legacy, and provide you with a greater sense of financial freedom. One of the most important reasons to save is to provide yourself with the freedom to pursue a career you love. One should always set a little money aside for enjoyment. And when you have savings, you can do this guilt-free, and without any worry that you are harming your financial future. There’s nothing like financial stress to keep you up at night; or worse, wake you up in a cold sweat. it is Savings that can get you out of this stress.

What happens when we save money wisely and invest intelligently? Our money grows. And when money grows, our opportunity to help others financially grows with it. So by savings we can help others in need. Saving money is just a tool we can use to accomplish our goals.

Savings in India are funded for the time of old age. India is one of the few countries with the highest savings rate in the developing economy of the world. Small savings have played a big role in controlling the savings made by small savers for the planned development of India. The saving of your money is important for everyone’s future. It is important not only at a personal level but also at the national level because it brings down the poverty rate of a country which contributed to a large extent towards economic growth. World Saving Day reminds people to come together in a saving mission. It affects various banks, schools, people, and communities so that it is possible to spread the enthusiasm of savings everywhere.

Not only that, World Thrift Day focuses on the financial security of the country as well. Banks play an all-important role on this day. They come up with methods with which they encourage people to be more mindful about their money and save it the right way. They are told about the savings account and its importance in great detail.

This day plays a huge in the financial growth of developing countries. As a majority of the people there are not able to avail the services of a bank, savings banks work with NGOs and other non-profit establishments to spread awareness about the same.

So, for goodness sake, get out of debt, trim your expenses, and place a priority on saving. It’s one of the best ways to honor family and friends. Saving and investing your money minimizes your financial risk.

Saving money is important because it provides security, stress relief, and freedom. And while there are countless reasons to save, you just need to find a reason that resonates with you. Whether it’s helping others, improving your marital finances, leaving a positive financial legacy, or just having a little more fun, you owe it to yourself to prioritize saving.

The writer is Incharge Abhedananda Home-Higher Secondary Institution for Specially-abled Children, Solina, Rambagh, Srinagar, J&K.   email: [email protected])

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