Thousands of bankers and banking agents fanned out across the country to reach people in far-flung villages and city slums.The writer is a well-known banker, author and Islamic researcher. Even in traditional societies, no matter how oppressed women are or the degree of literacy, they are often the stewards of family savings. And it is now the key focus of governments in developing countries.Melinda Gates co-chair of Gates Foundation is a diehard votary of savings and has pledged 500 million to promote savings and other financial services. "It also gives them the ability to marshal their resources to build something better for themselves and their children. Making that choice — the choice to save rather than to consume — is the foundation of money management.India is now on the cusp of a new savings pathway that shows hope — and an opportunity provided we sustain the same zeal, commitment and momentum. As early as 1924, the international community designated October 30 as World Thrift Day with the objective to stress the importance of savings for modern economies and for individuals alike. A one-time incentive for opening the account is not enough to ensure that they continue to save and use the account. Managing money well begins with hanging on to what you have.— Stuart RutherfordThe importance of savings has been understood from very early times even in the modern age. She toils tirelessly for the good of her family, putting their needs before her own. Despite conventional wisdom, poor people actually do save, even if it is just pennies each day.

This means avoiding unnecessary expenditure and then finding a safe place to store whatever money is left over. Lower-income families can convert savings into home purchases, education and businesses.There are basically three financial needs of the poor:Life cycle needs: Life cycle events that impose financial burdens include — births, deaths, marriages, education, home-making, widowhood, old age and the need to leave something behind for one’s heirs. This is specially true for women who are often underserved by traditional financial institutions. Governments and financial institutions are now engaged in a vigorous battle to integrate the unbanked into formal banking, not just for their business but to open a window for the poor which allows the global development winds to touch their lives. I learnt that keeping track of the transactions was the personal hygiene of finance, like brushing your financial teeth. Give me a fishing rod, and I’ll eat for a lifetime.

There’s no work ethic like that of a poor woman.Emergencies: Impersonal emergencies are caused by floods, cyclones, fire, etc, while personal emergencies include illnesses, accidents, bereavement, desertion and divorce. The older ones always advise the younger ones to keep a store of value that other family members do not know about. They use a variety of informal mechanisms: hiding cash at home, loaning funds to relatives, participating in rotating savings groups with their neighbours, engaging deposit collectors, buying livestock or other physical goods such as jewellery or construction materials.The key to effective financial inclusion is a safe and confidential savings. It allows them to fund their own businesses, to look ahead with confidence. The nationwide campaign yielded stellar results and set many world records. Money, which was earlier kept in tins at home and was open to loss or theft is deposited in the account that pays interest and is insulated from the daily demands of life. What we need is a savings revolution.com. Bringing this about requires products that suit their living patterns.When I first opened the account of my own I received a little booklet, the ubiquitous passbook, o-ring Manufacturers in which every deposit and withdrawal was acknowledged by the bank staff. They, therefore, need access to a basket of financial services. It is imperative to understand why people do not save, in order to design products that incentivise them to do so. To open an account now, reams of identity documents are no longer needed — and money for a deposit isn’t necessary, either. This philosophy has been the cornerstone of personal finance for adults in the developed world. When there is an emergency, they will understand your wisdom and appreciate. He can be reached at moinqazi123@gmail. They are a source of self-employment and job creation — encouraging and enabling families to imagine a future better than the present, and to prepare and plan for that future. To use financial services to their full potential, to protect their families and improve their lives, the low-income people need products well suited to their needs.”Financial inclusion isn’t just about numbers — it’s about people. But these days, there is a general view that one of the most effective tools to fight poverty may not be a fishing rod, but a savings account. Wealth begins with the first coin in the piggy bank. Savings helps families to take the giant leap from reacting to events to planning for a healthier, happier future. "Savings doesn’t just help people mitigate the risks posed by a medical emergency or a bad crop,” says Gates. The implicit message, not just for me, but I think for society at large, was that the bank account was the locus of money management. All one’s main financial transactions would pass through the account, and the account would serve as a barometer of our financial health. Financial products designers hardly want to do the hard work of first understanding how the poor think, followed by designing suitable products.

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