Saturday 14 / September / 2024
Imagine a society where children and young adults are nurtured to develop a strong savings habit from an early age. Over time, these savings can grow into a substantial nest egg, offering exciting opportunities for the individual—whether for investments, further education, purchasing a car, or even providing seed money for a dream home or a business startup. The true success here isn’t just the accumulated wealth, but the valuable lessons and experiences gained along the way, embedding a lifelong culture of financial responsibility.
Aligned with the fiscal strategies outlined in the 2040 Vision and bolstered by recent initiatives from the Omani government to foster a savings culture among its citizens, Oman’s banking sector has been a key player in this national effort. This was evident in the sector’s enthusiastic support for the pioneering Social Protection Fund (SPF) initiative introduced by His Majesty Sultan Haitham bin Tariq last year, which includes, among other things, the Child Benefit Programme. Through this program, the government has pledged to provide monthly financial support to Omani children from birth until the age of 18.
Every Omani child is entitled to have a savings account opened at birth, as it does not only provide financial security but also encourages children, along with their parents, family members, and other well-wishers, to contribute to these savings. Cash gifts from birthdays, Eidiya payments, and other monetary gestures can be deposited directly into the child’s account, offering a far more enduring benefit than toys or devices that quickly lose their appeal. Indeed, there is no greater gift than a financial contribution that will earn interest and grow into a sum that could have a transformative impact on the child’s future.
Experts agree that by the time children are seven or eight and beginning to understand basic math, they are ready to learn about money—its value, how to save it, and how to plan for the future. Encouraging them to save from an early age lays the foundation for a lifetime of financial security, particularly in today’s era of economic uncertainty and rising debt. As they grow older and grasp the function of a savings account, they will learn essential money management skills, such as budgeting and setting financial goals. They will begin to take ownership of their finances, watching their savings grow over time. These accounts not only provide a practical platform for children to learn about finance but also empower them to make informed decisions about their financial future.
As children transition into adulthood, their financial needs and responsibilities evolve. A dedicated savings account can help them prepare for more significant financial goals, such as buying their first car or home, or even starting a small business. Today, there are numerous examples of young Omanis who have successfully established their own SMEs. While many have benefited from low-interest loans and other financial support from banks and public institutions, most emphasize the importance of personal savings in providing a crucial initial boost before seeking additional funding.
Thus, while the Omani government deserves praise for encouraging the opening of savings accounts for children at birth, it is up to us as a society to build on this initiative and turn it into a national movement. The dual objectives are clear: to help our young people develop a savings habit early on, and to empower future generations to manage their finances wisely and make informed financial choices.
Bank Dhofar offers a diverse range of savings products designed to cater to various financial goals. The 'Life Cycle Banking,' approach offer various products to meet customer needs at each life stages. For individuals looking for flexibility, the Savings Account offers a basic platform for managing finances. Additionally, Bank Dhofar provides guaranteed return deposits like Fixed Deposits, Recurring Deposits, and Education and Retirement Savings Plans, ensuring a secure and predictable income stream. These products, coupled with Bank Dhofar’s exceptional customer service and convenient banking channels, make it a popular choice for individuals and families in Oman.
Ashraf Khalid AL Battashi
Head of products and segmentations in Bankdhofar
