World Savings Day: The importance of savings

Right from our childhood days, our parents teach us that a penny saved is a penny earned. The phrase highlights the importance of savings. While growing up, our elders constantly tell us that we should spend less than we earn and save some portion for future use. They also teach us to spend money according to our income, and our expenses should not exceed our income.

Saving is the path to success. The money saved can be used in tough times such as any emergency medical situation. It can also be used to create more money by the way of investment. That is why it is said a penny saved is a penny earned because you start earning more with your saving.

Most of us know the importance of saving. However, not many of us are aware about World Savings Day, its history and World Savings Banks Institute among others.

History of World Savings Day

The World Savings Day was established at the International Savings Bank Congress (World Society of Savings Banks) in Milano, Italy on October 31, 1924. The Italian Professor Filippo Ravizza declared this day the "International Saving Day". Also called  'World Thrift Day', the World Savings Day was established to promote savings all over the World. Originally the idea was to educate families, children and thereby the whole society to save and particularly convince them of the importance of saving.

Today, banks and financial institutions around the world, celebrate World Savings Day to increase the public’s awareness of the importance of savings both for households and for the country’s economy. They conduct lectures highlighting topics such as: Why saving is important, the history of World Savings Day, the role of savings in the national economy and how every depositor contributes to its development.

The idea of World Thrift Day was not born out of nothing. There had been some examples of days that were committed to the idea of saving money in order to gain a higher standard of life and to secure the economy. For example: In Spain the first national thrift day was celebrated in 1921. In Germany, the confidence of people in savings had to be restored since many of them had lost their savings in the German monetary reform of 1923.

Sparefroh and World Savings Day

The most well-known element of the World Savings Day is the “Sparefroh” in Austria. Sparefroh, the official mascot of saving, is particularly active on the World Savings Day. 'Sparefroh' literally means 'Happy Saver', or rather "Save Happily!" In the 1970s, the 'Sparefroh-Journal', an educational magazine for younger people, reached a circulation of 400,000 copies.

At all branch offices in Vienna, Lower Austria and Burgenland, banks usually offer customers a “Sparefroh” PEZ candy dispenser, a “Sparefroh” coffee mug, pen, writing pad, etc.

World Savings Banks Institute

The World Savings Banks Institute is the only global representative of savings and retail banks. WSBI represents savings and socially committed retail banks or their associations from 90 countries. The Institute works closely with international financial institutions and represents its members´interests at an international level.

Why saving is necessary

There are many ways through which one can save in life, start by controlling your expenses. Make a list of things you want to buy before going to the market, and shop according to your list. Do not buy anything extra and exceed your expenses. Stop going to shopping malls and end up buying things are costly and unnecessary.

Saving can be done in many forms. You can start by focusing your electricity and telephone expenses. In case of electricity one can save lot if one remains alert and switch off lights and fans and other electronic item immediately after their use. Similarly in case of telephone you can save by buying an affordable model and talking less on phone.

Thus, your saving not only benefits you but also helps in preserving the environment by preventing wastage and contributes to the economic growth of country.

Also Read…

World Savings Day on 31st October

Good habits to manage your finances

Power of compounding… A motivating story

How can savings make money for you?

Saving and Investing: It pays to start early