According to World Development Indicators (WDI), by the World Bank, the average household savings rate in Africa was 17.1% in 2020, with significant variation between countries. For example, the savings rate was highest in Cape Verde (44.1%), Rwanda (12.3%), Kenya (12.0%), Uganda (10.9%), Nigeria (8.0%) and lowest in Comoros (3.3%).
WDI also provides data on the financial access of households in Africa, including the proportion of households with a savings account. In 2020, an estimated 36.6% of households in Africa had a savings account, with the highest levels of access in Seychelles (90.0%), Kenya (44.3%), Uganda (41.2%), Nigeria (26.3%) and the lowest in Somalia (4.9%).
It is important to note that access to savings accounts and the level of savings can be influenced by various factors, including income, financial infrastructure, and most importantly cultural attitudes towards savings.
It is for this reason financial literacy is an essential life skill that everyone should have, but not everyone has access to the education and resources needed to learn about money management and investment.
In Africa, this problem is particularly pressing, as children are often left without access to financial education, resources, or opportunities to manage their money. Smolleys, a Rwandan-based digital bank for kids, is working to change that.
Founded by Mr. Hamza Katende , Smolleys is a platform that empowers children to learn about money management and investment in a fun and interactive way. By giving kids the tools they need to save, spend, and invest their money earned from completing house chores or tasks assigned to them by their parents. Smolleys is helping to groom and develop the next generation of financially responsible and savvy young people.
The Importance of Financial Literacy for Children.
Financial literacy is a critical component of child development, and research has shown that children who learn about money management and investment at a young age are more likely to grow into financially responsible adults.
Additionally, studies have found that children who have access to financial education are more likely to make smart money decisions later in life, such as avoiding high-interest debt and investing in their future.
However, despite its importance, financial literacy is often overlooked in many countries, including Rwanda. Children are often left without access to financial education, resources, or opportunities to manage their money, which can make it difficult for them to develop the skills they need to become financially responsible adults.
Smolleys : A Solution to the Problem of Financial Literacy.
Smolleys is a digital bank that provides children with a platform to learn about money management and investment in a hands-on, interactive way. The platform allows children to save, spend, and invest the money they earn from doing household chores or tasks assigned to them by their parents, giving them the opportunity to learn about money management in a real-world setting.
One of the key features of Smolleys is its ability to track and categorize children’s spending and income, allowing them to see how much money they are earning, where it is going, and how much they have left. This helps children understand the value of work, money and develop good spending habits.
Additionally, Smolleys offers a variety of investment options, allowing children to invest their money and grow their savings. The platform also includes educational resources, such as quizzes and videos, to help children learn about money management and investment in an engaging and accessible way.
Another important aspect of Smolleys is its security and privacy features. The platform uses secure, encrypted technology to protect children’s personal information and financial data, ensuring that their money and identity are protected at all times.
Smolleys has a number of parental controls built in, allowing parents to monitor their children’s spending, deposit and withdraw money on their behalf, and even set spending limits if needed.
The Impact of Smolleys on Financial Literacy in East Africa
Since its launch, Smolleys has made a significant impact on financial literacy in Rwanda and Uganda. Children who use the platform have access to fun and engaging quizzes about finance and money, wealth of financial education and resources, as well as opportunities to put their knowledge into practice by saving, spending, and investing their own money.
By giving children the tools they need to make smart financial decisions, Smolleys is helping to develop the next generation of financially responsible and savvy young people in Rwanda, Uganda, Kenya, Nigeria and Tanzania.
By empowering children to take control of their financial future, we believe Smolleys is helping to build and groom a generation of financially responsible and savvy young Africans.
You can also take control of your kid’s future by downloading the Smolleys app currently available on the google playstore.
For more on finance in Africa:
Microfinance Securitization in Africa
Unlocking Finance in Africa – Micro Finance Institutions (MFI)