The importance of savings

For more than a decade, 31st of October has been celebrated as International Savings Day. According to the Interamerican Development Bank (IDB), saving is important to overcome difficult periods, but above all, to prosper during favorable times.

Last year, in its report ‘Development in the Americas 2016’, the organization warned that the Latin American region should save more, and better, to generate new opportunities for growth and foster more inclusive societies.

The document explains that regional savings is 18% of its GDP, a proportion well below the level of savings in more developed economies (23%). Tomás Serebrisky, chief economist for IDB and co-author of the report, assures that, “it’s not a matter of who saves, rather, the quality of the savings”.

Aware of this, BBVA Microfinance Foundation not only facilitates access to financial services for people living under vulnerable conditions, it also provides financial education and training to emphasize the value of savings– one of the many ways the Foundation supports entrepreneurs, so they can better manage their businesses and finances that would play a part in achieving prosperity.