A CHANGE IN BEHAVIOR MAY TRANSFORM OUR FINANCIAL DESTINIES

 In a certain financial literacy training a trainee asked me for advice about his financial situation. He was over indebted for several years. Anyone can be in such a situation because we are all human. 

From a financial literacy perspective the situation of the above employee requires analysis to understand what led to his predicament. The question is, what led to his outstanding debt? In my years of financial literacy training I have come to appreciate that solving financial issues requires empathy and patience in understanding the unique situation of every client. Since personal financial management is an emotional issue it requires individualized and specialized attention to the client's needs.

With out adequate financial literacy training a client is bound to spend based on emotions and in most cases can make financial mistakes. For example without a good savings discipline a client will borrow for consumption and this triggers a debt cycle. In financial literacy training we encourage the borrowers to have a clear purpose for borrowing. This is because the loan especially from a financial institution is other peoples' money and it has to be repaid. The reason why banks are strict on the customers they lend to is because the regulator Bank of Uganda instructs them that for every shilling that they borrow it must be repaid.

Therefore it is critical that in a nation where the majority of the citizens are below the age of 30 years financial literacy training should no be ignored. This is because it is bound to trigger behavioral change in the population regarding financial matters.

WAYS TO CHANGE FINANCIAL BEHAVIOR

1.Develop clear financial goals

2.Hire a financial mentor or coach

3.Open an account 

4.Attend financial literacy training

5. Save at any opportunity

7.Track your expenses

8.Learn from the very best

9.Spend with a budget

10.Start small.

11.Save as you earn.

Behavior shapes our destinies. Unfortunately money management is personal and behavioral. This calls for an individualized approach to money management. To redeem the population from financial distress in these hard economic times, financial literacy training must be emphasized.

Phillip Kiryowa

Finance and Leadership Coach(PCC)

+256752615916

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