Executive banker explains why Ugandans should save first and spend later

As January draws to a close, Ugandans have been urged to make saving a priority if they are to achieve their aspirations and long-term financial goals. The call comes from Israel Arinaitwe, the Head of Personal Banking at Stanbic Bank Uganda, who says cultivating a strong saving culture is critical to both personal prosperity and national development.

Speaking in an exclusive interview, Arinaitwe emphasised the principle of saving before spending, echoing the enduring wisdom of economist Adam Smith, who argued in The Wealth of Nations that “the development of an economy depends on the stock of its capital.”

“This philosophy is one every Ugandan should embrace if we are to improve our lives and secure a better future for the next generation,” Arinaitwe said.

He reflected on this idea through the lens of Stanbic Bank’s new brand campaign, Keep Growing, which he described as more than a corporate slogan.

“At Stanbic, we say Uganda is our home and we drive her growth. We are responsible for the continued growth of the country. Keep Growing is tied to our purpose of ensuring that we keep growing the country,” he explained.

Central to that growth, he said, is a deliberate and disciplined approach to saving. According to Arinaitwe, saving is one of the most powerful steps an individual can take toward living a better life, regardless of income level.

“If one wants to live a better life, saving is very important because it enables you to do so,” he said.

However, he noted that attitudes toward saving remain a major challenge, with many people believing they should only save what is left after spending.

“The problem is that people in our communities think you save what is left, yet that is wrong because after spending, there is usually nothing left,” he observed.

To illustrate the correct mindset, Arinaitwe drew on a familiar practice from older generations. In many households, he recalled, a mother would first set aside the children’s breakfast for the next day before serving dinner.

“That is what saving is,” he said. “Before you think of spending money, you first put away a portion for saving. It is not only for the highly paid.”

He explained that saving builds capital, which in turn unlocks productivity by enabling people to acquire essential resources such as money, tools or land—key ingredients for transforming one’s circumstances. He encouraged young people to be especially intentional about saving.

“If you have started a business, continue building it. If you haven’t, I urge you to start. And if you are employed, please save some money because you will need it in the future, especially to expand your business,” he said.

Arinaitwe also highlighted the expanding reach of financial inclusion in Uganda, noting that digital banking and agent banking have made it easier than ever to save.

“Banks have been brought to our doorstep,” he said. “Through your phone or an agent, you can open a bank account and save your money.”

Despite this progress, he revealed that about 30 percent of Ugandans still keep their money at home, where it earns no returns. He urged people to take advantage of secure, interest-bearing savings accounts.

“Your money is safe. When you put it in a savings account and earn interest, it means it is multiplying,” he said.

Beyond traditional savings, Arinaitwe pointed to Stanbic Bank’s investment options, including unit trusts, which allow clients to earn returns through money market funds.

“The best thing in life is not you working for money, but money working for you,” he said, encouraging young people to explore investments such as unit trusts, treasury bills, bonds and property.

He added that Stanbic supports clients by developing commercial units and enabling them to earn from land and rental investments.

“We are helping our clients generate more, keep more, and get more from what they have,” he said.

Arinaitwe’s message extends even to the youngest Ugandans. He encouraged parents to begin saving for their children from birth, noting that Stanbic offers child savings accounts that earn interest.

“You can begin a child’s saving journey from birth,” he said. “This is good for all Ugandans as we seek to keep growing.”

He concluded with a reminder on financial safety, urging customers to protect their personal banking information and promptly report any suspicious activity.

“Make sure your account and financial assets are safe, and as a bank, we guarantee that your financial assets are secure—and we will keep it that way,” he said.