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.
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.
Theme of World Savings Day 2023
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 'Conquer your Tomorrow'.
Tips for saving money
Create a Budget: Start by making a monthly budget that outlines your income and expenses. This will help you track where your money is going and identify areas where you can cut back.
Set Financial Goals: Define your short-term and long-term financial goals. Having clear objectives will motivate you to save.
Prioritize Essentials: Differentiate between your needs and wants. Prioritize essential expenses like housing, groceries, and utilities over non-essential spending.
Cut Unnecessary Expenses: Review your spending habits and identify areas where you can cut back. This could include eating out less, canceling unused subscriptions, or reducing impulse purchases.
Shop Smart: Look for deals, use coupons, and compare prices before making purchases. Consider buying generic or store-brand products, which are often cheaper.
Emergency Fund: Build an emergency fund to cover unexpected expenses, like medical bills or car repairs. Having a financial safety net can prevent you from going into debt.
Reduce Debt: Pay off high-interest debts, like credit cards, as quickly as possible. The interest on these debts can significantly impact your finances.
Energy Efficiency: Lower your utility bills by being energy-efficient. Turn off lights and appliances when not in use and consider energy-efficient appliances.
Invest Wisely: Consider investing your savings in low-cost index funds or other investment vehicles to help your money grow over time.
Remember, saving money is a gradual process, and what works for one person may not work for another. It's important to tailor these tips to your individual financial situation and goals.
