Postbank Kenya organises a wide range of activities in schools all over the country to promote savings and financial education
Students usually earn money from allowances (pocket money, airtime and transport allowances…) student jobs like babysitting or car washing, gifts/presents (birthdays, Christmas…). However, they still do not put much money aside. Promoting a savings culture among young people is crucial: savings help to achieve long term goals, deal with unexpected expenses, facilitate future investments, increase wealth and ensure financial survival. Furthermore, savings represent one of the four pillars of financial independence, together with investing, discipline and avoidance of excessive liabilities.
When it comes to saving, people face several obstacles: lack of planning, lack of budgeting, consumption, life style… Financial education is the solution to overcoming these challenges and create good habits from an early age.
PostBank Kenya has developed tailor-made savings solutions for children, teenagers and young adults. One of their most successful products is the “SMATA” youth account, which targets youth aged 12-18 and presents them with an affordable and accessible banking product, putting them in the driver’s seat and in control of their finances. The fact that opening a “SMATA” account only costs of Ksh50 (approximately USD 1.98) helps bring the youth into the financial system.
KPOSB also offers the “STEP” account, which is a “smart, trendy, electronic and portable account designed for the youth”. The opening balance is also USD 1.98 and there is no charge on deposits.
Schools act as special distribution channels for disseminating SMATA accounts. All 99 Postbank Kenya branches identify one or two schools within their area of operation and agree with the school administration on appropriate dates for the workshops. Most of the activities at schools take place during the Global Money Week, and there is a different theme each year. In 2018, the theme was “Money Matters Matter” and activities included drama workshops, drawing, essay writing… All these activities contribute to inculcate a savings culture among the youth.
Postbank Kenya fosters financial literacy among the disciplined forces of the country
Postbank Kenya targets four categories of the country’s disciplined forces: the Kenya Armed Forces, the National Police, the Prisons Services and the National Youth Services. KPOSB organizes workshops and events (such as sports tournaments) to promote financial literacy among those groups.
Experts address relevant topics such as financial management and the importance of savings. They also provide the targeted audience with useful savings tips: saving before consuming, setting life goals, being consistent, avoiding unnecessary expenses, earning money through legal means… This way, KPOSB aims to create savings habits.
As Postbank Kenya says, “It is not how much money you earn, it is how much you save that determines your financial freedom.”