As your monthly salary arrives, obligations begin to pile up, but you also deserve to relax after all the stress you went through to acquire that money.
During this planning period, you remind yourself that saving for the future is equally important—because, as the phrase goes, “nobody knows tomorrow,” right?
However, saving is not always easy. Unexpected expenses, peer pressure, or impulse spending can quickly deplete your cash, leaving you in the same position you started. Sounds familiar?
For many young people in Ghana and elsewhere, saving money is easier said than done. However, financial security is more than simply willpower; it is also about selecting the appropriate saving technique.
Some prefer the basic Susu box, while others are split between traditional banking, the ease of Mobile Money, and the age-old Susu system.
Each option has advantages and disadvantages, and recognizing them can help you make the best decision for your financial future.
Susu: You never know.
Susu is a traditional method of savings in Ghana and other West African countries. It entails making daily or weekly donations to a reputable collector, who keeps the money secure and returns the full amount (often minus a small fee) after a certain period.
Advantages:
Encourages daily or weekly savings.
Works effectively for people with sporadic incomes.
There are no banking fees or cumbersome papers necessary.
Challenges include:
limited security and the risk of money loss due to dishonest collectors.
No interest is earned on savings.
Inflation may lower purchasing power.
Mobile Money: Convenient and Flexible.
Mobile Money (MoMo) services such as MTN MoMo, Vodafone Cash, and AirtelTigo Money have transformed Ghana’s savings landscape, allowing consumers to easily store and move money digitally.
Advantages:
Easy access via cell phone.
Can earn interest with savings features, such as MoMo wallets.
There’s no need for bank visits or hefty documentation.
Immediate access to money for crises
Challenges:
Easy access to finances might lead to impulsive expenditure, as evidenced by your airtime purchases.
Transaction fees accumulate over time—the 50 pesewas and 1 cedi fees, along with the E-Levy, can be inconvenient.
Fraud and scam risks abound, with questionable calls and badly worded scam messages being a continual source of irritation.
Banking: Secure and rewarding.
Banks provide structured and long-term savings options with extra security and financial growth through interest returns. Banks in Ghana, such as GCB, offer a variety of savings accounts adapted to individual needs.
Benefits:
Money is safe and insured.
Earns interest over time.
Access to loans and investment opportunities.
Financial literacy assistance from banking professionals
Challenges:
Requires documents (e.g., ID or proof of residence).
Bank fees may apply.
Less adaptable than Mobile Money and Susu—though banks now offer MoMo integration and ATM cards for better access.
Which one should you choose?
Your financial objectives and lifestyle will determine the optimal saving plan for you.
Susu may be great for those who desire a straightforward, informal way to save.
Mobile Money savings accounts are ideal for tech-savvy consumers looking for flexibility.
If you want to ensure your financial security in the long run, you should open a bank savings account.
Brief Tips for Effective Savings
Regardless of your approach, here are some important guidelines to maximize your savings potential:
Set a Savings Goal – Decide what you want to save for, whether it’s education, a business, or an emergency fund.
Consistency is key. Make it a habit to save on a regular basis, even if it’s a tiny amount.
Avoid Unnecessary Withdrawals – Resist the urge to remove funds until absolutely required.
Take Advantage of Interest Rates – If you use a bank or MoMo savings account, select one with competitive interest rates.
Stay Informed – Understand the fees, fraud risks, and best practices for each savings option.
Young Ghanaians, and people all throughout the world, may make informed financial decisions and build a secure future by recognizing the pros and disadvantages of different savings options. The trick is to make saving a habit, be disciplined, and use a strategy that is appropriate for your financial goals.
Whether you choose Susu, Mobile Money, or a traditional bank, taking control of your funds today will result in greater financial independence tomorrow.
