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Saving for the future – Association of Banks of Montenegro

The Association of Banks of Montenegro, in preparation for the savings week, announces an educational visit to the Njegoš elementary school in Cetinje and the Slobodan Škerović high school in Podgorica. The World Savings Day was established on October 31, 1924 in Milan, at the first International Congress of Savings Banks, and on the initiative of the Italian professor Filippo Ravizzo with the desire to highlight the value of saving both for the individual and for overall economic progress. In this way, the Association of Banks of Montenegro wants to emphasize the importance of financial literacy, from understanding terms, financial calculations to developing financial plans. Then, by pointing out that one should not spend more than the income, which means planning in advance income, expenses, but also the fight against wastage. The financial education of the youngest and young people is especially important as the future of every country.

Several years ago, the need for a more active approach to this issue was given by the Study of the OECD Program for the International Evaluation of Students (PISA testing) in the field of financial literacy, which was conducted in 15 countries, where it indicates that every fourth student is not able to adequately bring simple decisions related to everyday consumption, while only one in ten understands more complex problems, such as taxes and interest rates. Financial education should be insisted on precisely in less developed countries.

In Montenegro in 2003, there were about 42.2 million euros in citizens’ savings accounts, and at the end of September 2022. amounts to 1,613,259,000.00 euros. Total deposits in bank accounts at the end of September 2022. is 4,966,375.00 euros. The stable growth of savings in Montenegro speaks of trust in the banking system and the need to set aside for “black days”, despite never sufficient income and purchasing power that is never at the desired level.

For almost a century, every year the first week of November is the day of increased social responsibility of banks. On this day, banks around the world reward their most loyal depositors and remind them how important financial security is, the importance of financial security in the form of savings and how important it is to save for set goals.

Secretary General of UBCG

Bratislav Pejaković, M.Sc