World Savings Day which is marked on October 31 is celebrated in India on October 30. This day, also known as World Thrift Day, is celebrated to raise awareness regarding the importance of saving and to educate people on the benefits of saving in banks instead of stocking them at home.
Savings basically means all the earnings that a person saves after meeting a person's day-to-day expenses over a given period. This is very important if you have short-term financial commitments like buying a mobile phone or going on a trip. They also enable us to stand against unforeseen emergencies.
Though this day began in Europe, today it is important globally, especially for developing countries where penetration of saving accounts is considerably low.
History of World Savings Day
World Savings Day was first established in 1924 by the World Society of Savings Banks during the 1st International Savings Bank Congress to motivate people to save money and trust the banks for safekeeping. October 31st was officially established by Fillippo Ravizza, an Italian professor who wanted to promote the concept of savings universally.
However, the day gained prominence only after World War II.
In India post 1984 the day is celebrated on October 30 as it coincided with the date of Prime Minister Indira Gandhi’s assassination.
Read More: World Thrift Day: How thrifting offers an opportunity to save money
Importance of World Savings Day
The idea of this day is to get people to move the savings that they have at home in vaults to bank accounts. This is so that they can benefit from using banks and earn interest on the money that they have saved after much difficulty.
Reports claim that around 1.4 billion adults in the world still lack banking access and of these individuals over half come from countries like India, Bangladesh, Nigeria and Egypt alone.
Theme of World Savings Day 2022
Every year, the World Savings and Retail Banking Institute celebrates the day around a central theme with multiple events. The theme for this year is 'Savings can make all the difference'. This theme will help spread awareness on why it is important to save and how it can help during times of need and emergency.
The theme was chosen post a couple of difficult years due to the pandemic and armed conflicts in various parts of the world.
During this day, banking organisations from 64 countries come together to spread awareness.
Tips for saving money
1. Set a purpose: Just like you set up small goals before you pick up any task you can use the same method here and start with small goals. Maybe a vacation with family or if saving is very new to you start with dinner with family. Slowly move on to bigger goals like mobile phones or washing machines at home. Sometimes, knowing what you are saving for makes it easier to save.
2. Keep a check on spending: We live in a time and space where the youngsters more than the older generation, are under constant peer pressure and want to have branded clothes, bags, watches and so on. If it is not this then there is a constant competition of getting a new home, bike or a car. But if you keep spending then you will not be able to save for your own personal goals. Sometimes, fighting peer pressure can be extremely difficult but you have to focus on your financial goals.
3. Spend smartly: No matter how hard you try you will end up spending money. You can’t just spend zero. So set up a budget and decide how much money you will spend for your entertainment and how much you will save. You can also make use of different discounts or coupons that will help you save.
4. Start investing: Investing is not the same as saving. Investing is for the long haul like your retirement plan or buying a house in the future. If you start today your future will be easier as you will have some money to depend on. If you are just beginning your career or are somewhere in between then this is your chance to secure your future because you have the opportunity to start saving a small amount.
Read more: How are Savings and Investing different?
5. Learn from your experiences: If you are in your mid twenties and just starting out then keep in mind that if you lose money due to a bad judgment then it is a lesson for you to learn. You also have the benefit of talking to people and learning from their experience. This will help you save money and make smart investments.
6. Plan your retirement: For the younger generation, for obvious reasons this sounds like a joke after all you are just starting there is still time for retirement. But retiring after you have grown old is a thing of the past. There are quite a few people today that have retired at the age of 40, all because they planned it well. Which means that if you spend time saving today you may also have the opportunity to retire early and follow your dreams. This is also important as, right now, you may not be bound by too many responsibilities that give you a chance of saving. But later in life, when you have a family to take care of you may not be in a position to plan for your retirement.
7. Set up an automated saving mechanism: We live in a digital age where everything is automated, so why not automate your finances. You can invest in a platform that automates savings and generates good returns. To explain it simply, just opt for a scheme where money is directly deducted from your account after your salary is credited. This way you don’t have to worry about putting in the effort and you also know how much money you will have left for your expenses.
