Knowing the importance of money and how to use it to enhance social and economic well being is very paramount if we are to move our nation – Nigeria forward. Lack of financial literacy has brought so many financially buoyant people to ruins. Many people make money yet can’t account for how the money is spent. They believe the money will always continuously flow not knowing that there are times when money will not come in at all. They forget to save for the rainy day.
The importance of financial literacy can therefore not be overemphasized in our dear nation.
What is Financial Literacy?
Financial literacy deals with the acquisition of knowledge and the subsequent ability to understand how money works and how you can manage to earn, make it, manage it and invest it to yield more. To be more specific, it deals with requisite set of knowledge and skills that empowers an individual to make informed and valuable decisions with their financial resources.
Financial literacy empowers individuals in every facet of life to fulfill family, social, personal and governmental responsibilities. Financial education is important as it helps in budgeting, management of income, efficient savings and investment for individuals thus reducing the chances of being a victim of fraud.
The Managing Director/Chief Executive of Fidelity Bank Plc., Mr. Nnamdi Okonkwo once said
“that financial literacy will help young people gain financial freedom through prudent management of money and clear differentiation of needs and wants.”
He said this at an event titled “Inspiring Young People towards Financial Literacy and Freedom.”
With the knowledge you’ll acquire from financial literacy, you’ll be able to manage money and ensure you are free from poverty and other self-made worries which money can solve at later stages in life.
Here are 6 action steps to ensure you are financially literate
- Be in charge of your spending: What you need is different from what you want. Try to draw up a budget and eliminate what you spend on non-essential items. This will help you to save more than what you spend and this is one of the major keys to getting and staying ahead financially.
- Seek for quality advice: Determine and ensure you fill your financial knowledge-gap void by seeking qualitative advice from trusted and well recommended industry professionals who can tailor their financial advice based on individual requirements.
- Ensure you get the basics right: You must be well grounded in knowing the basics of managing money smartly. Doing this will help you put your financial system in order.
- Update your knowledge base: By updating your knowledge base about financial literacy, you’ll be more confident about making investment decisions and also know how to choose between various product and/or services offerings that will in the long run protect and grow your wealth.
- Start early: It’s good you start teaching your children what financial literacy is all about so that you can inculcate it into them from a very young age. Key elements such as earning, borrowing, saving, investing, spending and insuring should be taught so that these life skills will yield profitable returns for them in the future.
- Read wide: You can get good financial advice from newspapers, websites, books, TV and radio from time to time.
By becoming financially literate, you will secure a better future for yourself and be empowered to contribute your quota to #MoveNaija.