Adults in developing countries are not as lucky to have a Financial Account as compared to the rich world. Only 18% of people in the Middle East and north Africa do, compared with 89% in high-income countries. Economist should help the people below the poverty line to save more. It is true that the money saved is the money earned. So the savings would help them to pay big and unexpected expenses such as school fees or medical treatment.This would accelerate economic growth.
But getting people to save is hard, and one reason is economic version of myopia :the failure to give adequate weight to future benefits over immediate pleasures. Most of the people are myopia, but for people below the poverty line saving is the best and would benefit them in the future. There are various ways to save the money by joining rotating and credit association or also tie up money in livestock. But at some point one loses its savings.
“Commitment-savings accounts” (CSAs), attempts to tie people’s hands to prevent myopic spending. Those who open an account cannot withdraw funds until a certain date, or until they have deposited a certain amount.
In the end , one should be responsible in spending and saving the money so that it helps them in the future to fulfill their basic and necessary needs. Countries like uganda and kenya are having alot of isses when it comes to savings.
Citing : “Poverty.” Print.
