In recent years, we have seen various financial institutions investing in financial inclusion, allowing more and more people and companies to have access to financial products and services and be equipped to use them, at an affordable cost, in a simple and transparent way. No less important is the increase in financial literacy among these more vulnerable groups.
In line with the 8th Sustainable Development Goal – Decent Work and Economic Growth – Absa Bank Moçambique has devoted a large part of its work to implementing actions that facilitate Mozambicans' financial knowledge, such as the launch of the Financial Literacy Handbook and the organisation of discussion forums on the subject aimed at young entrepreneurs, and, in line with World Savings Day, which is celebrated every year on 31 October with the aim of alerting consumers to the need to discipline the household budget and increase their savings, the Bank has been carrying out actions aimed at state schools to teach saving.
In fact, teaching saving is important because it helps people to build a solid financial foundation, plan for the future, reduce financial stress and achieve their personal development goals. We know that saving skills in Mozambique are still developing, and the country faces unique challenges related to the economy, culture and access to financial services.
Now, in practice, how do you build this more sustainable path? Through financial management. Put like that it sounds complicated, but there is nothing like having an account manager who encourages you to monitor your finances regularly. If you do not have one, you can always get into the habit of checking bank statements, understanding the times of the month when you spend the most money, keeping financial records and adjusting plans as necessary.
In some communities, there is a tradition of informal saving, where people come together to form savings and credit groups. This can be an effective way of saving, especially in areas where access to formal financial services is limited.
Absa has been working to guide people to seek professional financial advice when necessary, especially for more complex matters, such as saving and investing.
In addition, it is important to adapt financial literacy practices to the specific realities of the Mozambican market, including the unique financial opportunities and challenges that people face every day.
The Bank has shared 4 saving tips for anyone wanting to begin their journey:
1. Be pragmatic and realistic
In recent times, many families have had to make adjustments to their lives with the rises in the price of goods, services and bank repayments. Unfortunately, many families do not have savings to cope with unforeseen events and others may lose income and will be forced to make adjustments.
2. Know your financial situation
Whether we are going through a difficult time or a positive economic situation, we should know our financial situation, which means drawing up a household budget, identifying the various expenses and keeping them under control.
3. Set goals
Knowing your financial situation and setting goals allows you to make effective and rational decisions. You may decide to cut some expenses to build up emergency savings, so as to feel more secure facing the coming times or even to take that trip you have dreamed of. Or you may choose to start saving for the long term right away, for example, saving for your child's education or for retirement. You will realise that there are ways to save money without much effort, as long as you have a well-defined strategy.
4. Start saving!
Once your financial goals are set and your current situation is known, it is time to begin the path of saving and of investing in products that can increase your financial possibilities in the future.
