In today’s challenging economy, saving money has become a strategic necessity. Reports from the National Bureau of Statistics show inflation in Nigeria climbed from 22.41 per cent in May 2023 to a peak of 34.80 per cent by late 2024.

This means cash that is not generating interest is rapidly losing its value.

Many Nigerians still rely on informal saving methods like keeping cash at home or ajo and esusu contribution schemes. While these encourage discipline, they have clear limits. Money kept outside formal systems does not grow, it earns no interest and misses out on compounding.

To build a real financial foundation, savings must have a clear purpose. An emergency fund is important, but leaving it in low-yield accounts limits its potential. Fixed deposits offer a stronger path to growth by earning interest and reducing spending temptations.

Saving with specific goals strengthens financial discipline. When people save for rent, education, or business capital and automate contributions, they remove uncertainty. Tech platforms like FairMoney now offer secure, transparent saving options under Central Bank oversight.

The writer, Osasikemwen Ighile of FairMoney Microfinance Bank, concludes that financial security depends on how well resources are managed. In an uncertain economy, shifting from just keeping money to structured saving is key to long-term planning.