Save for a rainy day

Some of us might have been enjoying good lives today because the generations before us were not lured by consumerism and left some savings for the future. We can argue that that generation did not have to live with high inflation and currencies had more purchasing abilities or disposable income.

Such arguments may hold some ground, but that is not entirely the case because low inflation also meant low salaries and low yields for any produce, leaving little room for savings. On the occasion of World Savings Day, the National Centre for Statistics and Information (NCSI) said around 60 per cent of Omanis save part of their monthly income. The figures do not reflect how much of their monthly income is reserved for savings and in what form, but they certainly indicate that a lot more can be done to encourage savings because due to low inflation and a strong Omani Riyal, a household can save more than they do now.

Savings are part of the traditions which, in many societies, begin at home.

“It is about developing a particular type of temperament. By encouraging them to save a small part of their income, maybe it is from pocket money or that received as a gift,” we help them to manage money, which they can use in the future to meet some of their aspirations,” said Samira, an Omani entrepreneur. She added that today’s generation does not care for savings because they can meet their aspirations by taking loans. “We should tell our children that loans should be reserved for meeting big goals such as buying a property or a vehicle, which cannot be achieved just by savings. Small desires such as buying a dream dress or travelling to a dream destination can be easily met by accumulating monthly savings."

Spending from savings can also make children spend wisely and feel independent because they do not have to depend on their parents to go to a movie or some restaurants with their friends, according to some other parents. According to an investment expert, "In some economies, people save their income via bank deposits or through investments in assets such as gold or even property."

Recently, the Central Bank of Oman (CBO) introduced the Bank Deposits Protection Law to safeguard deposits held at licensed financial institutions in Oman, particularly for small depositors who are most vulnerable in case of a bank's insolvency. Such measures will instil greater confidence in the banking system, encouraging savings and long-term financial stability.