Save a Little More Everyday

Through a guide entitled Financial Planning Book, the Financial Services Authority (OJK) in Indonesia explains what financial planning is. Financial planning is the art of financial management carried out by individuals or families to achieve effective, efficient, and beneficial goals so that the family becomes prosperous family. In general, the activities undertaken are managing income to achieve financial goals such as the desire to have a birth fund and education for children.

The guide also mentions that the primary source of the unavailability of cash in the family is the need for more habit of setting aside income for savings. In fact, by setting aside a portion of income, each family can have a reserve fund that can be utilized for various needs. Nuriani, a mother living in Enrekang District, South Sulawesi, explains, "People here don't understand the importance of setting aside money for savings and managing their family finances well." 

Nuriani lives in an area where the majority of the population work as farmers. With an income that depends on the harvest, these farmers should have savings. These funds can meet needs during crop failure or uncertain yields so that the family's financial condition is more secure and planned. 

On this issue of family financial management, Wahana Visi Indonesia works with Mondelez International and other partners. These parties initiated the Village Saving Loan Association (VSLA) through the Cocoa Life program. VSLA is a simplified version of a savings and loan cooperative. Villagers can register as members without overly complex requirements. In addition, VSLA requirements and regulations can be customized to suit the context of the community better. VSLAs usually consist of 10-25 members. In addition to adults, VSLAs can also include children. 

In the early stages, Wahana Visi Indonesia conducted socialization on Household Economic Management (PERT). Community awareness of the importance of managing family finances must be raised first. Next, the community was introduced to the VSLA (Village Saving Loan Association). The community in Enrekang District then agreed to create a VSLA for farmers and children of farmers in the village. VSLA, in this district, aims to become an institution that helps the community manage the household economy so that children can live prosperously. The VSLA for children in one of the villages in Enrekang was named VSLA Anak Bayam.

The VSLA, named Anak Bayam, has been operating since November 2019. Anak Bayam VSLA was formed because of the initiative of children who saw their parents benefiting from this savings and loan group. These children are also used to joining and seeing their parents' savings and loan activities, so they are already familiar with VSLA. Initially, the group consisted of 18 children, but the membership grew to 47. The amount of savings or shares agreed upon for each meeting is Rp. 7,000. VSLA Anak Bayam conducts regular meetings once a week. 

With VSLA Anak Bayam, children are accustomed to setting aside their pocket money for savings. "Since the existence of this group, children in my village have started to be diligent in setting aside pocket money given by their parents. For example, my mother gives me Rp 10,000 daily as pocket money. I set aside Rp 2,000. So when it's time to save, I already have the money. Usually, my parents also give me extra money to save more at VSLA. I also save the money I get from relatives or other family members to save at VSLA. I am pleased and motivated to save a lot from an early age," said Nur Rahmadani (13), one of the members. 

Nur Rahmadani's parents are also adult members of VSLA in their neighborhood. Besides herself, Nur Rahmadani also feels the benefits of VSLA for her family. Her parents now have a savings account that can guarantee the availability of education funds for Nur Ramhadani. Now, children and parents are more active and motivated to save to fulfill various family needs, especially the needs of children.

Family financial planning and management can start by increasing awareness and enthusiasm for saving. Each family can begin planning and managing family finances by taking the three easy steps below:  

1. Establish what the financial goals of the household are. Like the VSLA in Enrekang District, the main objective is to help the economic management of farming families, focusing on child welfare. So VSLA can be a solution so that the children of farmers in Enrekang can live in a more economically secure family condition. 
2. Check your family's financial condition at least once a year. Referring to the Financial Planning Book guide published by OJK, families should be able to find out which economic posts are unhealthy. The sooner it is detected which posts are suffering, the better. 
3. Make a household budget monthly. Monthly budget records can help families in allocating and managing the income received. The household budget should include a savings and investment portion. This solution can help achieve family dreams and make family finances healthier and more prosperous.

Source : https://sikapiuangmu.ojk.go.id/FrontEnd/images/FileDownload/25_Buku_Perencanaan_Keuangan.pdf

Writer : Oktavianti Mariana (Field Facilitator)

Editor : Mariana Kurniawati (Communication Executive)