SAVING AND INVESTMENT

Subject: Pre-technical — Topic: ENTREPRENEURSHIP (Age: 13, Kenya)

Saving is keeping money safely so you can use it later. Investment is using your money to try to grow it (but it can be risky).

1. What is Saving?

- Putting aside some of your money now so you can use it in the future. Examples: keeping coins in a jar, a bank account, or M-Shwari.

2. What is Investment?

- Using saved money to buy something that might increase in value or give returns later. Examples in Kenya: SACCO shares, government treasury bills, unit trusts, starting a small business or buying land.

Saving (low risk)
  • Easy to access
  • Money is safe
  • Little or no growth
Investment (higher risk)
  • May give bigger returns
  • May take longer time
  • Can lose money sometimes

3. Ways a Kenyan teen can save or start investing

  • Piggy jar at home — good to learn discipline.
  • M-Pesa or bank savings account (ask your parent/guardian to help open one).
  • M-Shwari or KCB M-PESA (mobile saving options) — check with adults and learn about interest and terms.
  • Join a small family or school Chama (group saving) or a youth SACCO if available.
  • Save to start a small business (sell snacks, services, crafts) — this is an investment in your business skills.

4. Good reasons to save and invest

  1. Pay for school needs, uniforms, or fees.
  2. Buy something important later (phone, laptop).
  3. Start your own business.
  4. Handle emergencies (health, family).
  5. Grow money for the future (college, farming, land).

5. Simple saving plan (3 steps)

1) Decide a goal (e.g., save KSh 3,000 for school trip in 3 months).
2) Work out how much to put aside each week (KSh 3,000 ÷ 12 weeks = KSh 250/week).
3) Keep your money safe and record each deposit in a notebook or on your phone.

6. Safety tips

  • Use trusted banks or SACCOs that are registered in Kenya.
  • Never give your M-Pesa PIN or bank PIN to anyone.
  • Be careful of get-rich-quick schemes — if it sounds too good, it might be a scam.
  • Talk to a parent, teacher, or trusted adult before investing money.

7. Quick glossary

- SACCO: A savings and credit co-operative where members save together and borrow from the group.
- Chama: Informal saving group among friends, family or neighbours.
- Interest: Extra money you get for saving or pay when you borrow.
- Risk: The chance you may lose some or all of the money you invest.

Try this activity:

Make a 3-month savings plan: set a goal, calculate weekly savings, and choose where to keep the money (jar, M-Pesa, bank). Write it down and check every week.

Note: This page is for learning. For adult financial decisions, ask a parent or a licensed financial adviser in Kenya.


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