The economic impact of the culture of savings


“Some sitting in the shade today because someone planted a tree a long time ago. —Warren Buffett

It may seem contradictory, but economies need both individual spending and saving to thrive. When people spend money on goods and services, it leads to increased job creation and employment, and it means more people have money to spend. When people save money with formal financial institutions, these institutions can lend to businesses or invest in growing industries and return interest to the saver. The more people save, the more money is available to help businesses grow, leading to the creation of jobs and jobs. Thus, a strong economy needs its people to spend and to register.

The savings rate is the ratio of personal savings to personal disposable income (that is, the percentage of their income that individuals within an economy choose to save rather than spend). A country’s savings rate is an important determinant of economic growth. Investments are financed by savings, so countries with higher savings rates have more capital to invest, leading to higher GDP growth. Economies with a weak savings culture likely focus on short-term consumption rather than long-term investment, which can lead to slower or stalled economic growth.

For individuals, the need to balance spending and saving is an ongoing battle. Most people have to weigh what they want today against what they want for our future, for example, ‘Buy the nice car now, or buy a cheaper car and save the extra to buy a house in a few years.’ It is natural to crave the finer things in life; you work hard and you should enjoy the fruits of your labor. Take advantage of it too much, however, and you may find yourself in trouble. When you spend all your money, you’re less able to deal with financial shocks, like medical emergencies or unexpected expenses. It is also more difficult to take advantage of wealth creation or investment opportunities when they arise. Therefore, embracing a culture of savings is vital for people who wish to become financially free.

Halo Financial Services, a recently launched fintech, leverages technology to help people get the best possible returns on their savings. One of the innovations that Halo brings to the market is its community approach. With Halo, when people save as a group, their individual interest rate is calculated on the total amount the group is saving. Interest rates increase as the amount saved increases; Thus, Halo allows everyone to benefit from the power of their collective. For example, if there are ten people in a group who each save 10,000 Naira, their interest rate will be calculated based on 100,000 Naira (the total amount the group is saving).

Halo Financial Services’ Director of Growth, Nnenna Onyewuchi, says, “Savings improve the financial health of the individual and society. When these savings are channeled into investments, the benefits are even greater. When you invest, you grow your savings. That’s why Halo not only makes it easy to save, but also to invest. Savings provide security, which is important. But investments are how you create wealth. This is ultimately what our customers want.


Many people think you have to be rich to be an investor. The truth is that you get rich by investing. Start by setting aside a small portion of your income and directing it towards savings and investments. Halo offers both fixed and target savings plans, some you can start with as low as 1,000 naira per month. Fixed savings allow you to block a sum of money for a specific period. This reduces the temptation to spend it and earns you good interest. Goal savings allow you to set aside money regularly to reach a target amount, while earning interest. This allows you to accumulate funds over time towards your goal. On the investment side, Halo offers a variety of products including mutual funds, local and US stocks, and private funds for investing in real estate, commodities, and more. Some investments start as low as N5,000. When you invest, you grow your savings.

Halo’s chief investment officer, Adekunle Akintunde, suggests that “with the current economic landscape, it has become apparent that one cannot simply save one’s way to wealth. Increasing your income by making profitable investments is a life-changing choice that you should consider. Halo is committed to helping you build and maintain your wealth by providing both investment products and the information and advice you need to make informed decisions. We help you understand why having an investment is an important step towards financial security.

One of the biggest hurdles for individuals when it comes to investing is risk. By their nature, investments can make or lose money. Successful investors learn to manage their risk while maximizing returns. Halo offers a range of investment options to suit a variety of risk appetites. From low risk vehicles such as money market funds and bonds, suitable for more cautious or inexperienced investors, to more volatile local and US equities and suitable for more sophisticated investors. Halo also provides insight, advice, and guidance to help individuals of all experience levels make the best financial decisions possible. Halo believes that everyone, regardless of age, gender, or income level, can and should create wealth through investments.

In addition to savings and investment products, Halo offers a full range of banking products, including bank account, payments and credit. Halo holds licenses from two regulators, CBN and the SEC, which assures clients that their funds are safe, and the company has the highest standards of corporate governance and risk management.

The economic health of a country depends on the financial situation of its citizens. For the Nigerian economy to grow, more Nigerians need to achieve financial stability. Building a better savings culture and channeling those savings into investment is a good way to start. The more Nigerians save and invest, the more capital there is in the economy for businesses to grow, which leads to greater job creation, which leads to more people with money in their pockets. A strong savings culture benefits everyone. Companies like Halo, which make it easier for individuals to save and invest, contribute to Nigeria’s overall economic growth.


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