Importance Of Financial Literacy Among Children - WORLD THRIFT DAY

World Thrift Day is celebrated annually on 31st October worldwide. In India, the day is celebrated on 30th October. The day that stresses the significance with the intent of raising awareness among people all around the world about the idea of saving their money in a bank instead of keeping it under the mattress or at home. This promotes savings and financial security for not only the individuals but for the nation as a whole.

Savings means ‘economising’ or ‘reserving’ a part of our regular income to be able to use it to make a bright future. Saving secure ones’ future and also preserves resources by avoiding wastage. 

The day dedicated to highlighting the value of saving money and financial security.

The term ‘thrift’ refers to use resources carefully and wisely so that they are not exhausted all at once. People should be educated on the need and the various ways of saving. The public especially younger ones should be taught the importance of depositing their money in banks so that it can be accessed during times of need.

Financial education needs to be imparted among kids so that they grow up as financially conscious adults. Financial literacy is like handing kids a life-long tool—a skill they’ll keep using again and again. We have to teach financial literacy at a young age so that it becomes part and parcel of everyday conversation. 

WORLD THRIFT DAY 2024: THEME

World Thrift Day is dedicated to foster a culture of being economical. While it might not be as widely recognised as some other global observances, its purpose is crucial enough to be advocated among the masses.

The primary aim of this day is to emphasise the significance of money saving thrifty spending, and achieving financial security. Many children grow up unaware of how to take care of their financial matters as they have their families or others to do so on their behalf. 

Why Thrift Day is important? 

• World Thrift Day is an event to raise awareness about the importance of savings for individuals and as a responsible contributor to the country’s development, saving money is important for the country’s economic growth as well.
• People save money for their old age, retirement, children’s education and marriage or to achieve an unfulfilled dream in their lives. 
• The day gained prominence only after the Second World War when people evolved and started taking good care of their resources. Today, World Thrift Day has taken on a more significant role with commercial participation across the globe.

History of the World Thrift Day

The motive of establishing this day was to encourage people to save money that was lost after the first world war. 

• World Savings Day was first started by the World Society of Savings Banks on 31 October in 1924. 
• The day was launched by an Italian Professor, Filippo Ravizza. He called the day “International Savings Day”. 
• The motive of  Mr Ravizza to declare this day was to bring awareness amongst the family groups to save for their future, to save for their children, medical emergencies and unforeseen circumstances. 
• However, certain countries have a history of celebrating savings day within their countries much before World Savings Day came into existence. e.g Spain has been celebrating the day since 1921 and Germany started it a few years later in 1923.
• Some more highlights for celebrating the day :- 

• The day emphasizes on Financial security, which is essential for a bright future. Saving money and investing it further in suitable commodities yield good returns, thus creating a sizeable contingency for one’s future.
• The day is used to spread information on the need to save and the various areas available for saving to the common public.
• ‘Thrift’ itself means using resources in a wise and careful manner so that we don’t end up exhausting it all up in one go. Therefore savings banks play an important role in promoting the culture of saving and investing in countries. They do campaigns and launch initiatives, such as working with non-governmental organizations in order to double the number of savings accounts held by the poor.