Why you should save money in Cameroon

Why you should save money in Cameroon.
wallet and money


Savings have been dropping in the past years in Cameroon especially in the North West and South West Region of Cameroon. This is due to the crisis in these regions. There are many reasons you should save  your money in Banks or Micro finance institutions like Credit Unions in Cameroon.


In this article, you will l learn the following:

  • Definition of savings.

  • Reasons you should save money in Cameroon.

  • Factors influencing savings in Cameroon.


Also read: Njangi Finance and how it works in Cameroon.


Savings Definition: This refers to part of money not spent to buy goods and services but kept in Banks and Micro Finances. Also understand that keeping money at home without any financial institutions is illegal and is called hoding. That hiding money under the bed or in a small box.


Money  is Saved in the Commercial Banks or Micro Finances.


Saving money  is Voluntary not compulsory for everyone.


Money is kept safe in the Saving Account of Commercial Banks and Micro Financial institutions to yield INTEREST.


REASONS FOR SAVING MONEY


Many People Carried out for the following reasons:


1. To handle unforeseen circumstances such as Illness, Emergency as Accident , Fire  burn.


2. To start up a business, build houses , buy a Car, or pay School  fees. Many people save to gather Money for their planned business or fees for children. 


3. To earn Interest from the Money saved: The motive many people save is to earn interest on savings. This is usually paid monthly or yearly.


4. To educate Children  and provide their Basic needs:( Food, Clothing and Shelter ).


5. For Prestige purpose ( to be an Account holder ).


6. The willingness of people to safe money: Many people save to protect their money, that's they transfer the risk of loss to Banks and microfinance institutions.


FACTORS THAT FAVOURS SAVINGS IN CAMEROON

Hand Saving money


1. The Level of Income:The higher the income Level ( salaries or wages) , the people are willing to save Money  while the Lower the Income level ( Salaries or Wages) the fewer people are willing to save Money .


2. The Rate of Interest:

When banks and micro financial institutions are paying a high rate of interest, there will be high Savings while banks paying Low rate of interest, there will be low Savings.


3. The Political Climate: A peaceful country will record high Savings while an unstable or war Facing Countries will record low Savings due to uncertainty about the future hence it Discourages Savings.


4. The Presence of Micro Finances and Banks: When there are many Financial institutions, there will be more Savings while when there are few Financial institutions , there will be a low rate of Savings.


5. Advertisement: When Banks do more adverts to make people understand the importance of savings, the rate of saying will increase.


6. Mobility of Banks and Finance institutions: Many Banks are now making it easy for customers to save from the comfort of their own houses. On the other hand, Micro finance institutions like Credit Unions have also adopted Mobile Money and  Daily collectors "Akao" Argent's.

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