Do you want to be at the cusp of adulthood, middle age, or even worse retirement and staring at the ugliness of financial despair?
Do you want to be at the cusp of adulthood, middle age, or even worse retirement and staring at the ugliness of financial despair?
Definitely not.
That’s why it’s time to take control of your financial choices.
The sad truth is, most of us lack basic financial education.
Yeah, we buy the next cool thing we see and chronically procrastinate on our saving resolutions.
More devastatingly, educational institutions are doing little to churn out financially empowered people.
Let’s see why you should pursue financial knowledge.
Financial literacy can be defined as having the ability to understand and make informed decisions about money.
Many have crumbled under the current wave of inflation and unpredictable economic situations.
Often, because we aren’t able to live within our means or borrow more than we can actually afford we fall into unsustainable lives.
Financial literacy, therefore, is a necessity that can help you build effective money management skills to secure you and your family’s future.
S&P Global Ratings through their Global Financial Literacy Survey discovered unsettling findings on financial literacy in Africa.
The study reported that Kenyans have a remarkably low 38% financial literacy score.
South Africa came in at 42%; Tanzania pulled 40%; and Nigeria got a paltry 26%.
These low financial literacy scores in Africa suggest hundreds of millions are grappling with sub-optimal financial health.
Although it has a legal connotation, bankruptcy happens when you’re unable to pay outstanding debts.
Bankruptcy further wipes out your eligibility for future loans and could also mean your assets could be confiscated. In turn, this can cause mental stress and even family strife.
While taking credit isn’t harmful, bad borrowing habits can throw you into a spiral of debt. This means you’ll strain to advance any personal developments since you’re constantly hounded by debtors.
Impulse buying, spending money you don’t have, and spending more than you can afford are some of the bad financial habits you make frequently.
While they may not seem like a big deal, these habits can be detrimental and hard to break.
Note: Bad financial health doesn’t just have financial implications. If adverse, it can also affect your physical, mental, and emotional health.
Extensive reports point out that inadequate financial education largely affects the youth (Millennials and Gen Z).
Nevertheless, there’s a silver lining. The youthful have the most time ahead of them to make up for their financial knowledge inefficiency.
Also, with smartphones, the internet, and financial technology, you don’t have to rely on traditional financial education.
You can access financial courses and coaches for free on platforms like YouTube.
Financial technology however gives people the most promising chance at financial knowledge.
Fintech systems like banking apps come with money management tools to make you more financially aware.
Mobile banking applications let you manage your finances whenever and wherever. Many even send you alerts on the progress you’re making to keep you on track.
Some services let you cultivate a saving culture with saving goals. Subsequently, motivating you to be more goal-oriented in your financial aspirations.
No more opening daunting excel sheets to create a budget.
Many banking apps have modern budgeting features to help you monitor your finances and live within your means.
Although many fintech apps do this subtly, you’d usually get regular tips on what you can do to improve your financial situation.
The relationship you have with money is the pillar of your financial well-being. It’s your time to be financially empowered.
You can start with progressive habits like saving, cutting down on unnecessary expenses, budgeting, and the works.
To speed up your financial knowledge, you can further sign up for a digital banking app like Fingo and take advantage of the available financial wellness tools.
Remember, it’s never too early to start your financial awareness journey.
Fingo Africa is a CBK regulated Product powered by Ecobank
.svg)
