Accumulation takes a while, whether it is in either negative or positive way. Usually, negative things are accumulated while you are so unconscious of them. A common example would be gaining some weight during winter, which makes us scared of the upcoming season! On the contrary, we are looking forward to and waiting for the positives to be accumulated.
As we all know, this simple idea applies to our patterns of consumption and saving. Being a regular saver is not an easy job, as there is an opportunity cost in return for your account balance showing credit accumulation. Considering the low-interest rate these days along with burdens of household debt, we are constantly losing our willingness to save.
However, saving is the very fundamental ground in our economy, as widely perceived so. It works as like a cushion in the events of economic crises, providing back-up measures. To remind the public of the importance of savings, ‘Savings Day’ was appointed on the last Tuesday of October. Today is the 49th anniversary of Savings Day, and there was an event held by Financial Services Commission this morning.
FSC invited awardees who were nominated as a ‘good model saver’ by banks, financial institutions, and other related entities. Those awardees are regular savers who have contributed to representing a good model of savings. There were even famous movie stars among the awardees! And as you can guess, the event venue was filled with people celebrating the event and awardees as well as many reporters and photographers from various papers and media.
Congratulating today’s event, the FSC’s Chairman Kim Seok-Dong emphasized how important it is for us to follow the basic principle of ‘sound investment and rational consumption’ along with regular savings. Mr. Kim advised that both government and financial companies should take a role to provide an economic environment encouraging more savings.
Are you a regular saver? I do not think there are many of you confidently saying, ‘Yes, I am’. However, this is not just a matter of individual preference between savings and consumption. Rather, we need to closely look at our financial system as a whole to analyze what causes a low level of savings in our economy. Follow-up posts in this regard will come up shortly during this week!