Few Zambians save their money in banks despite the fact that most accounts are savings accounts, Bank Association of Zambia chairperson Clergy Simatyaba has said.
Mr Simatyaba said the composition of savings deposits had reduces from 14 percent to 10percent of the total deposits at the end of September 2015.
He was speaking at a media briefing on the World Savings Day which fell on Saturday.
He said savings world over helped nations and it was important that Zambians learnt to save as opposed to consumption.
Mr Simatyaba said the commemoration of World Saving Day was an opportunity to share information on the importance of savings and increase awareness on various services available on the market.
And the Bank of Zambia (BoZ) says it has partnered with Commercial banks in implementing the national strategy on financial education on the importance of saving.
BoZ deputy Governor Dr Bwalya Ng’andu said the Central Bank had a number of positive interactions with all the commercial banks and other financial institution in relation to the positive impacts that came with financial literacy.
He said this in a speech read for him by the BoZ financial sector development chairperson Visscher Bbuku
As part of celebrations, the commercial banks also exhibited their products in Lusaka and Ndola on the Copperbelt.
Dr Ng’andu said the role of banks remained one of the most reliable channels in implementing the national strategy on financial education and extending benefits of financial education to the Zambian population.
“The ability to make well-informed financial decisions plays an important part in the ability of individuals to manage financial affairs well, a factor that can have either a negative or positive ripple effect on the economy,” he said.
Dr Ngandu said to affirm the Central Bank’s commitment to financial education, it held a financial literacy week this year which ran from 9th to 13th March in all provinces and reached out to over 50,000 individuals and over four million people.
He explained that a person with a good level of financial literacy was likely to be better positioned to manage financial affairs than one who did not have knowledge.
“Poor financial choices are sometimes based on lack of understanding of financial matters, and this can result in a number if negative outcomes including a lower level if financial wealth and imprudent debt levels,” Dr Ng’andu said.
He said financial literacy in developing countries such as Zambia had direct impact on promoting livelihoods and economic growth.
Dr Ng’andu also said the central bank had engaged the Ministry of Education which had revised the national school curriculum to include financial education at all levels of the syllabi.