WORLD SAVINGS DAY
On October 31st, World Savings Day increases public awareness of the importance of saving money. It’s also a day to recognize the impact that savings have on the global economy. The day is sometimes referred to as World Thrift Day.
Financial experts say that you should have three to six months’ worth of expenses in your savings account. If your monthly expenses are $3000, you should have $9,000 in savings. It’s even better if you have enough money to cover 6 months of expenses. By saving this much money, you won’t have to worry so much if you lose your job or there is a change in income. However, if you’re like most Americans, you probably don’t have enough in savings. The latest statistics show that 51 percent of Americans have less than three months’ worth of emergency savings in their account. About 25 percent of those surveyed don’t have any emergency savings at all.
One reason for this is that many people are living paycheck to paycheck. After their monthly expenses are paid, they don’t have anything extra for savings. Others simply spend too much money and live above their means. They might not think a lot about their financial future.
There are some countries around the world that are doing a good job of saving money. The countries with the most in personal savings include:
- Slovenia
- Estonia
- Ireland
- Hungary
- South Korea
- The Netherlands
- Germany
- Sweden
- Switzerland
- Luxembourg
Besides personal financial stability, savings is good for the entire economy. When personal savings rates are high, the economy tends to recover more quickly. Also, when the bills are paid, banks, grocery stores, and other businesses keep their doors open longer. These places have a better chance of keeping their workers employed. Savings also helps to lower the amount of debt the world is in. Currently, global debt is approaching a whopping 300 trillion dollars.
HOW TO OBSERVE #WorldSavingsDay
Banks, credit unions, and other financial institutions hold events on this day that promote the idea of saving money. Many of them provide free gifts for opening savings accounts. Others host workshops that educate the public on the importance of savings. To participate:
- Make a budget and decide how much you can put away in savings each month.
- Set a goal to save enough to cover at least three months-worth of expenses.
- Teach your children about checking and savings accounts.
- If you’re not good with money, take an online financial course.
- Learn more about why savings is good for the global economy.
Share this day on social media with #WorldSavingsDay.
WORLD SAVINGS DAY HISTORY
An Italian professor named Filippo Ravizza declared the last day of the 1st International Savings Bank Congress as “International Saving Day.” The event was held in Milan, Italy in 1924. The idea was to have a way to inform people it was better to put their money in a bank rather than underneath their mattress. This day became more popular after WWII. Today, countries all over the world celebrate World Savings Day.
