Financial literacy matters more than ever before! Financial literacy is simply the ability to understand how money works. It means you know how to earn the money, manage it and invest it- in monetary policy what we call speculative portfolio allocation and management. It does not matter who you are, how much you earn or position you hold in society.
It is actually a safe bet that most young people do not learn much about personal finance during elementary and higher levels of education nor at home. We tend to learn these
concepts of financial literacy later in life or after bouts of New Year resolutions gone bad, waves of financial loss or related losses and then we also realize the age and
retirement clocks are ticking so loud.
In the recent monetary policy statement indications, though showing meager macro-economic
improvements on the other hand shows an indication of some tough times are ahead of us. This
interpretation however definitely varies from one individual to another which is a typical expectation from a multi-stakeholder and multi – dimensional society. But what is important is to realize what this means to us as individuals who earn, need to save and invest, have responsibilities and/or dependants without compromising our quality of life we live. I also still believe that it is never too late to become financially literate and improve financial behavior in that regard.
Financial literacy becomes an important aspect at all levels in our professional and social spheres of life. We have heard of the cliché advice of how to save, how to make money grow and many
others but one thing for sure is, you are in control of your financial future. Careful planning and a
savings strategy can go a long way towards building a solid financial foundation and helping us achieve long-term goals. Let us take baby steps towards financial freedom!
Rachel Mlndra Katoroogo, PhD