Two-third of vendors save earnings, says NRI

MOST market vendors, mostly women, save part of their earnings, according to the National Research Institute (NRI).
It stated in its recent publication “Understanding Financial Inclusion of the Informal Economy”, that nearly two-thirds of vendors saved part of their earnings regularly.
“It found that 64 per cent of female vendors and 62 per cent of male vendors saved part of their earnings.
“The main reason for not saving is that the income is spent on everyday living expenses, the principal is reinvested to continue market enterprises and often nothing is left for savings,” it said.
“Earnings would have to increase significantly to enable vendors who are currently not saving to meet needs and continue to save part of their earned income.
“The main priority for vendors is to put food on the table for their families and any extra cash is often spent fulfilling social and cultural obligations.
“These activities sustain and improve the welfare of individuals and families.”
NRI said vendors without any spare cash could not save at all.
“Other reasons cited include not having a bank account or vendors do not know how to save.
“The current habit of vendors is to spend first and save last. Saving is given the lowest priority.
“In many cases, the limited earnings are all spent.
“Market vendors, as is the case for most individuals with low income, need to develop the skill and ability, and have the opportunity, to gain control over their money.”