Most Batswana one paycheque away from poverty
Financial management education critical from childhood – Economist
Most Batswana are ‘ a pay cheque away from poverty’ due to lack of commitment to their financial goals, Otisitswe Kebonye Tawana- Madziba, the founding director of social enterprise FinEdu, says.
FinEdu has spearheaded a nationwide drive to inculcate financial planning education and awareness from the grassroots level.
The social enterprise has collaborated with different stakeholders to host financial planning sessions and donate financial planners and piggy banks across rural communities.
Tawana- Madziba, who is an economist with majors in corporate finance and investment by profession and training, said the biggest mistake many Batswana make is living beyond their means.
“Our personal value goals are sometimes set to outshine the other one, but this has led many into bad debts. If we can be realistic with ourselves and be committed, and avoid distractions and focus on commitment to long- term goals, we will go far as individuals and as a nation,” she said.
She said many Batswana are solely reliant on income from salaries and do not have buffers that will sustain them in case of unforeseen circumstances.
“This is accurately reflected in the outcries due to the COVID- 19 pandemic. It shows that our people were not financially prepared for a crisis, but this is a wake- up call for Batswana.
“The first lesson is to have diversified and multiple streams of income. The second is to have buffers, also known as emergency funds, which would come in handy when a similar situation arises.
“The third is for business owners to invest in other businesses and different asset classes. Batswana entrepreneurs also have to seize opportunities provided by the pandemic”.
Tawana- Madziba said her passion for financial planning was sparked while completing her Masters’ programme in 2014 when she took a part- time job at a local financial planning firm.
“I realised that many people need help with their finances, but cannot afford to pay for financial planning services. In 2018, I registered FinEdu and knew that personal finance is an area I would like to focus on, to empower people to gain financial independence and freedom.
“I also saw financial education as a great avenue to end poverty in our communities. I wanted to adopt a model that would reach out to the marginalised and financially excluded communities.
“The social enterprise model will enable my business to be commercially viable, while also fulfilling the social needs of the communities that I serve, which has given my life meaning and purpose”.
Fin- Edu started with a collaboration project for a financial literacy television show called, Youth on Point, which aired on Now TV and also embarked on financial literacy workshops for youth and the working class.
In 2020 Fin- Edu strategised to focus on children because they realised that many individuals struggle with finances in adulthood due to lack of financial literacy at a younger age, and they wanted to close this gap.
Tawana- Madziba explained that her challenging motherhood journey was also a major contributing factor.
“I had lost three babies at full- term. I didn’t let this tragedy drive me into depression, but instead found my true purpose in my struggles,” she said.
Tawana- Madziba said FinEdu’s interest has always been to create social value in local communities.
“We reached out to primary schools in rural communities to empower learners on financial management. We then started a radio programme called Raising Money- Smart Kids, which has been airing on RB2 since January.
“Lately, we developed financial education resources for children and for parents, and these were launched virtually last month”.
She said the biggest mistake that parents often make is to assume that children are too young to learn money concepts.
“This has led many parents to underestimate how their children can absorb and learn. By age three, the average child can grasp simple and basic money concepts. Start them with counting, identifying coins, and saving.
“When your child is in middle childhood, instill the habit of delayed gratification, through saving and investing. Parents should start by emphasising simple life skills such as being organised.
“Budgeting is basically organising your finances; knowing where your money comes from and where it goes.
“The other important aspect is to help children to know that money is earned through hard work. Teaching children money skills and good money habits requires practice and consistency”.
Tawana- Madziba said FinEdu is also working on storybooks to be availed by the end of this year. They already have a book out titled, ‘ Raising MoneySmart Kids.’
“We also provide financial literacy lessons and donate resources to learners in schools in rural communities. Our aim is to ensure that every child has access to quality financial education and resources, and we partner with other organisations for this.
“We will be offering financial literacy classes for children once Covid- 19 regulations are relaxed and will also host a webinar for parents and caregivers on how we can raise money- smart kids”.