ARE FINANCIAL LITERACY SKILLS EMPHASISED AT A YOUNG AGE?

 Attention goes to whether as a society we emphasize financial literacy training at a young age as a nation. This is not to neglect the fact that there are so many intentional parents who whole heartedly devote shaping their children in all aspects of life and we commend them. Other stakeholders such as government and civil society have also played a critical role in nurturing society to save. There are so many grassroot movements that are influencing behavioral change among Ugandans and that is commendable. In particular Uganda Financial Literacy Association is playing a critical role . 

While a lot is being done there is much more that requires our attention to safeguard the future of Ugandans in relation to their finances. Statistics show that 58% of Ugandans do not save at all according to the 2024 National Population census. The question is  why don't these Ugandans save? It should be noted that saving is not an easy task especially when one has competing priorities but it can be done. Saving is possible when started at a young age. However the responses towards saving while conducting financial literacy trainings across the country have shown me that some people are not intentional in developing a long term savings strategy. They eat whatever they get. Others can not even afford a meal a day. So if we are to improve the savings culture of the majority of the population we need to start at a young age.

I once saw an Indian parent who moved along with their child to the bank to teach him about money. But I have trained adults in rural areas who attest that they fear stepping into the banking hall. This signals that such people missed  being taught the basics of finance at a young age. Other adults do not see the need to open a bank account. I once witnessed a university student who noted that he did not need to open a bank account . This is a signal that more youths require financial literacy training. Schools play a very critical in shaping the lives of young people should amplify the message of financial literacy.

HOW TO MAKE WISE USE OF FINANCES

1.Have a long term financial vision

2.Create a budget

3. Live within your means 

4. Save as you earn

5.Expose the youths to financial institutions

6. Research before you invest

7.Celebrate small wins


Money is a very important facet of life. However the savings patterns of Ugandans show that much more needs to be done.  Training the youths about saving and money management is very critical.

Phillip Kiryowa

Personal Finance Coach(CPC,CMA)

Advanced Empowerment Link

+256752615916

Comments

Post a Comment

Popular posts from this blog

A SAVINGS PLAN CAN AID IN FINANCIAL ADVANCEMENT

 I remember during the Trainer of Trainers training conducted by Bank of Uganda we were encouraged to develop a savings plan. This was a key development because without a plan we may live in financial darkness. In my years of providing financial literacy across the country especially youths I have observed that the intangible practices that may be undermined play a big role in the big picture. I have been asked a question, "how can one save yet their needs exceed their income?. It is a tough question but the best practice remains that even in the hardest of circumstances we should prioritize saving .This is because we do not know what the future holds. As humans we forget so fast. Who remembers during the lock down of Covid-19 when people were not working. Life was extremely tough. It was an opportunity to reflect about the importance of savings during good times. A savings plan enables a person to determine why they are saving. It could be for school fees, buying a plot, a car an...
Read more

THRIVING AMIDST UNEMPLOYMENT

 Ask any graduate what their worst night mare is and they will inform you that lack of access to a dignified employment opportunity is a big hurdle. Over 70% of Ugandans are below the age of 30 years of age. There are very many reasons why the unemployment rate needs to be addressed. Uganda has over 30 universities and all universities graduate over 300,000 graduates per year yet the formal sector produces on average 70,000 jobs. This mismatch is an indicator of the frustrations that the young people face. It was on media last year when I saw a group of able bodied youths who wanted to beat up staff of a sports betting company for failing to pay for their "Return on Investment" in Bugiri District. Iam not saying that all youths are involved in crime .What am trying to point out is that the probability of a youth without a job being involved in crime is high( after all there is a saying that an idle mind is a devil's workshop). Just this year there was youth who was killed...
Read more

WE CELEBRATE GRADUATION BUT AFTER THAT WHAT NEXT ?

 Uganda is officially dominated by young people. Over 50 %of the population are youths. With a high population the job market also shrinks yet people need to survive. It is the means of survival that create social pressure. The unemployment dilemma in the country can be dissected from different angles and each person or all stakeholders have a critical role to play.  Universities and other institutions of higher learning produce over 300,000 graduates per year. The job creation rate is about 70,000 jobs per year. This means that the job market is narrow. It is a common sight to see over 100 applicants for one job. This is a signal that something drastic must be done to change this trajectory. Development partners such as government, private sectors and donors such as Master Card Foundation are playing a critical role in addressing youth unemployment. In fact this suggests that fight against youth unemployment must be multifaceted.  During graduation season it is justifiab...
Read more