International Journal of Advanced Scientific Research and Management, Volume 5 Issue 6, June 2020 www.ijasrm.com ISSN 2455-6378 1 Effects of Financial Planning in UMWALIMU SACCO on Socio-Economic Development of Teachers in Rwanda: a case of UMWALIMU SACCO Wilson Rurangwa 1 and Ernest Safari 2 1,2 Business and Economics, Mount Kenya University Kigali, Rwanda Abstract The overall intention of this study is to assess financial planning and socio-economic development of teachers in Rwanda. Descriptive research design was used whereby both qualitative and quantitative methods were applied. The population under this research involved all members of UMWALIMU SACCO in Kicukiro District branch in Rwanda that is made of 1,765 members as per 30th December 2018. Stratified sampling was used which is a probability sampling method such that the subpopulation within the general population have been incorporated in the sample selected in a balanced manner. This study to a significant extent depended on information about UMWALIMU SACCO Kicukiro Branch and their beneficiaries. Available handbooks, relevant information from the organizations’ websites, journals made up the secondary data were used by the researcher. After the collection of data, the researcher edited and code the data. The statistics revealed that there was statistically significant relationship between teacher’s contribution and the ability to start other income generating activities. Majority of the teachers joining UMWALIMU SACCO are motivated by access to loan which significantly contributes to increase in household income, improved access to medical services, access to children education and finally improves the ability to start other sources of income generating activities.. Keywords: Financial Planning, Socio-Economic Development of teachers, Rwanda and Credit Cooperatives, SACCOS, UMWALIMU SACCO 1. Introduction The researcher intends to bring out the concept of financial planning in saving and credit cooperative societies and how does it affect the members of those savings and credit cooperatives. According to Getachew (2016) the intention of developing Saccos was to assist the members to exercise saving by pooling together little amount they can get to facilitate borrowing among each other without taking risk and without handing too much power to money lending institutions. Relatively, in different African countries, SACCOs have been established in various sectors mainly targeting to improve the socio- economic status of the low-income earners. There has been a success to some extent and a failure to another. This mainly depends on the day to day management of these SACCOs and relatively affects the achievement of their objectives. The SACCO industry is part of the cooperative sector in Rwanda, which has impacted on lives of many Rwandans over the years. The development of such groups emerged rapidly due to lack of sufficient financial incentives. SACCOs exist in nearly all sectors of economy. UMWALIMU SACCO is one of the vibrant cooperatives which was formed in Rwanda to support teacher’s welfare. The government of Rwanda implemented a combination of benefits and encouragement for the teachers to practice saving in order to supplement their low wages especially for primary and secondary schools’ teachers (Muyombano and Mbabazize, 2016). Teachers are being encouraged to form cooperatives at their schools to facilitate them access big loans for big income generating projects especially in transport, agriculture and business. This organization need to develop strong financial planning systems since it handles the huge finances of teachers from the entire country. Based on the above background, the researcher intends to assess the effect of financial planning of UMWALIMU SACCO and socio- economic development of Teachers in Rwanda.