WHY EVERY YOUTH SHOULD EMBRACE BANKING

 At a recent financial literacy training session I asked the trainees present whether they possessed bank accounts. To my surprise half of the class did not have bank accounts. The lesson is that in today's fast changing world financial literacy is not an option but rather should be seen as a lifestyle. Banking has been democratized thanks to technology. No one should be left behind. Today the phone is the new bank and all bank transactions can be done on the phone such as checking balance and even borrowing on phone. 

For a long time youths or customers asserted that there are longlines in banks but this is no longer the case with the introduction of digital banking and agency baking. Today one can bank close to their home and this reduces time and costs. The myth that one requires large sums of money no longer holds .This is because a customer can deposit as low as 5000/= at Equity Bank. In my journey as a banker and financial literacy trainer I have seen so many lives changed as a result of youths embracing banking. There was this youth who had never stepped into a banking hall but after attending a financial literacy training he opened an account and today he saves regularly. He was unemployed but now has several businesses that are employing many youths. Banks such as Equity Bank provide free financial literacy training to the customers such as the youths.

To ensure that we reduce youth unemployment the youths should be empowered to make wiser financial choices right from home. Money should not be an alien subject. One of the reasons why the Indians are succeeding in business is because they embrace financial literacy at a young age. One day I found an Indian parent in the bank with their child. The parent handed over the money to the child to bank. The lesson here is that the Indians deliberately train their children about money at a young age. On the contrary there are some African  parents who feel their children are too young to learn about money. In the end we find university students who are addicted to gambling as a means of survival. The absence of intentional financial literacy from the grassroots is a bottle neck to development. Banks have to borrow expensively from other sources simply because our savings culture as a nation is still weak.

HOW TO IMPROCE OUR SAVINGS CULTURE 

1. Financial literacy should start at a young age. 

2.Youths should start savings clubs.

3. Money talks should be embraced.

4.Digital literacy is key

5. Save as you earn

6.Live within our means

7.Creation of an emergency fund

8.Banks should reduce charges 

9. More bank agents should be created in underserved areas

10.Increase in financial literacy training across the country.


The youths of Uganda have a lot of potential and can transform into agents of positive change. Unfortunately I have met many who are victims of change. The youths can no longer afford to be excluded from the formal banking system. Today banking has been made convenient and accessible to everyone. Today the phone is the new bank and most youths have phones. Let us encourage more youths to embrace banking for the betterment of the nation. If countries such as India have done it so we too can.


For individual and corporate financial literacy training contact :

Coach Phillip Kiryowa 

Personal Finance Coach (CMA)

Certified Master Trainer, Bank of Uganda

Founder Advanced Empowerment Link 

0752615916

For Financial Freedom and Sustainable Enterprises 


Comments

Post a Comment

Popular posts from this blog

ACRE OF DIAMONDS

 According to Dr. Dennis Kimbro in his book Think And Grow Rich  every human being is an acre of diamonds. In simple terms we have more potential than we can imagine. With adequate self reflection this statement can change any person's life. It is Dr. Myles Munroe who noted that without knowing our purpose on earth we are likely to lead a less impactful life. The question that has been asked by many leading scholars is why are some people more successful than others? Is it family background? Is it luck? Is it the country where they were born? Unfortunately no body has a clear answer to this contradicting question. Hellen Keller was born blind but by the time of her death she was a very successful leader. Oprah Winfrey had a tough childhood but is now one of the most influential leaders in the world. Nelson Mandela was imprisoned for 27 years but became the president of South Africa. From the above case studies it is important for each one of us to learn a lesson. We have more...
Read more

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

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