One wonders why Governments worldwide urge their citizens to put money on bank accounts despite the increasing bank charges on their deposits and withdraws?
Saving can be defined as the difference between income and consumption. Saving money is one of the essential aspects of building wealth and having a secure financial future. Saving money gives citizens a way out of the uncertainties of life and provides citizens with an opportunity to enjoy a quality life. Putting aside a sum of money in a systematic manner can help citizens steer out of many hurdles and obstacles in life. It can support citizens in hour of need and ensure that citizen’s family has something to fall back on in case of an unfortunate event. There are many reasons to save and several ways to save with ease.
Saving is a very important step in managing personal finances. Saving money has many benefits that can help improve citizens’ life. From helping citizens become more financially stable to having a safety cushion to fall back on in case of an emergency, when citizens have money saved up, citizens have less likely to have to rely on credit cards or loans to cover unexpected expenses.
The following are the reasons why government would urge their citizens to save their money in banks despite the charges on withdraw;
1. The government would encourage citizens to save their money in bank because this helps to keep the economy stable since the money saved in banks will still stay in circulation and other people can borrow the saved money and invest in other ventures which help the government to collect taxes and development the country.
2. The government would encourage citizens to save their money in bank because Savings enables citizens to get Better Retirement; Saving money for retirement is important because it allows citizens to have a comfortable life after citizens retire. It also gives citizens peace of mind knowing that citizens have money set aside for citizens’ future and that it is possible to retire earlier depending on how well citizens’ have managed to save.
3. Guaranteed by Deposit Insurance Agency; Saving at a bank provides better security protection than keeping money at home. Banks have strict security systems, such as protection against theft and loss of money. Deposits at the bank are also guaranteed by the Deposit Insurance Agency (LPS), so if the bank where citizens save goes bankrupt, citizens will not lose the funds in citizens’ savings because LPS will guarantee them according to the terms and conditions that apply.
4. Earn Interest; One of the main advantages of saving at a bank is the growth of citizens’ funds. Banks provide interest or returns on citizens’ savings balance. The bank's interest will help increase citizens’ savings' value over time. The bigger and longer citizens save, the bigger the profit citizens get.
5. Transaction Ease; Banks provide various facilities to access citizen’s savings easily. Citizens can use a debit card or ATM to transact, such as withdrawing cash or transferring between accounts. Several banks also provide online banking services such as mobile and internet banking, allowing citizens to access citizens’ savings account anytime and anywhere.
6. Help Manage Finances; Saving at a bank helps people to manage their money/incomes in a more organized and planned manner. Having a savings account lets citizens separate funds used for daily needs from savings funds.
7. Savings offers citizen peace of mind: Knowing that citizens have a certain amount accumulated for times of citizen’s need, gives citizens peace of mind. Citizens can lead a stress-free life with the knowledge that citizens will not have to struggle if things take an unexpected route.
8. Savings gives citizens a better future: Citizens r savings can be the answer to a number of citizens’ goals. Citizens can secure citizen’s future, indulge in the best of things that life has to offer and live a very fulfilling life.
9. It gives citizen’s family security in case of an unfortunate event: By saving in a disciplined manner, citizens can make sure that citizen’s family is well provided for. In unfortunate times, citizen’s savings can act as a cushion for citizen’s loved ones and help them overcome any financial difficulty.
10. Saving money also helps citizens reach citizen’s financial goals. This can vary from short-term goals, such as buying a new phone or pair of shoes to long-term goals, such as buying a house or retiring early. The more citizens save, the less time it will take to reach citizen’s goal.
11. Improves overall well-being; having savings can help weather unexpected life events such as job loss, medical emergencies, or unexpected repairs. So, saving money will improve overall well-being by providing financial security and peace of mind.
12. Financial independence; Financial independence gives citizens the ability to live without depending on others for financial support. It also gives citizens the ability to weather unexpected financial challenges, such as a job loss or medical emergencies.