A Guide To ‘Living’ The 2021 Financial Literacy Week Theme: ‘Take Care Of Your Health, Take Care Of Your Money’
Dear Reader,
We trust that you and your wonderful family are well and that you are keeping safe as we fight the Corona Virus spread. Please do your part in ensuring that we conquer this pandemic collectively by following all the health guidelines as guided by the Ministry of Health.
During the past weeks, we have been sharing stories regarding how we can leverage aspects that can help us manage our money better during the pandemic for short and long-term purposes and outcomes. This week, we focus on highlighting the commemoration of the 2021 Financial Literacy Week! This marks a very important 2021 calendar activity for Zambia as a whole and for individuals as we are reminded about the importance of managing personal finances well. This is a call on all of us to ensure that we practice and adopt good money management behaviours that will ultimately change the quality of our life and that of our loved ones for the better.
Understanding Financial Literacy Week
Financial Literacy Week (FLW) is an annual awareness campaign commemorated to educate and sensitise the general public about various topics on managing personal finances. The campaign is adapted to meet our National Strategy on Financial Education ( NSFE) objective to provide Zambians with knowledge, understanding, skills, and confidence to help them make prudent financial decisions for themselves and their families. The Zambia FLW is a localisation of the Global Money Week (GMW).
GMW is an annual global awareness-raising campaign on the importance of ensuring that young people, from an early age, are financially aware and gradually acquire the knowledge, skills, attitudes, and behaviors necessary to make sound financial decisions achieve financial well-being and financial resilience.
The FLW activities target children ( 0- 17 years), youth (18 -35 years) and adults (35 years and above).
Take Care Of Your Health, Take Care Of Your Money
The 2021 FLW is now (22nd to 28th March), it is being commemorated under the theme, ‘Take Care Of Your Health, Take Care Of Your
Money’. The theme emphasises the need for us all to understand that our health is our personal responsibility in the wake of the global pandemic. We need to be knowledgeable about ways to earn, save and invest our available and future financial resources that thrive in a digitalised environment.
Why We Care…
We recognise our role in helping to improve the quality of life for individuals and their loved ones by Financially including them through the provision of tailor-made innovative yet affordable products and services. This enables people to be active players in the economic growth of our country. For this reason, we proudly join other stakeholders in the national Financial Education enhancement agenda in observing the objectives of FLW. Stakeholders include and are not limited to, our regulator the Bank of Zambia (BOZ), Ministry of Finance, Pension and Insurance Authority, German Savings Bank Foundation for International Cooperation, Rural Finance Expansion Programme, Capital Markets Association of Zambia, Zambia,
Association of Pension Fund Managers, Association of Micro Finance Institutions of Zambia, Insurers Association of Zambia, Bankers Association of Zambia ( BAZ), Securities Exchange Commission (SEC), Financial Sector Deepening Zambia (FSDZ), other banks and individuals who are committed to ensuring that the citizens of Zambia have access to information as well as products and services that can equip them to make better choices in money management that will ultimately help them to create wealth and attain financial freedom.
Setting The Tone
To ignite your will power to make positive changes in your money management style, if not doing so yet, we share key learnings that can help you to get started (be sure to visit any IBP branches nearest to you for products and services that can help you to attain this):
Financial Education - Foundation For Being Money Smart
Knowledge is indeed, power! Therefore, we need to learn as much as we can about money and its importance in our lives, not only for ourselves but also for our children. With financial knowledge, we elevate ourselves to being individuals capable of making rewarding money management choices. With correct information about money, we arm ourselves against so many money-related scams. So let us begin to learn, learn and learn about money. Let us cascade these learnings to our children too. Please be sure to understand any investment plans before you commit any money to them. When in doubt, please consult with experts. Clearly understand what is suitable for your situation and when in doubt, please do not go ahead.
Being Money Smart – Get Way To Wealth Creation
Your ultimate goal in being Money Smart is to create a better life for you and your loved ones through wealth creation. When you are financially literate and Money Smart, chances are very high that you will make smart choices in all aspects of financial planning. You will know what is good and bad for you regarding the money decisions that you make. Over time, you will realise that you gained more wealth because you made the right decisions.
Beyond Financial Benefits – Your Health Matters!
Are there times that you have had to stress about money to the point of literally feeling ill? Worrying and stressing about money can be very detrimental to one’s health, mentally and physically. Such worries can lead to vices such as alcoholism which can affect the well-being of families. In extreme cases, worrying about money all the time can even lead to depression. Be wise, avoid money troubles so that you keep healthier in the long run.
Back To Basics – Savings And Financial Security Are Key
Being Money Smart is knowing that you can only get to create wealth through saving. This will lead you to secure your future so that you can live a quality life even when you have retired or are not able to generate income ( salary or otherwise) due to unforeseen circumstances. So please remember to plan for your retirement wealth as you save. Getting disciplined about saving sets you on this path; nothing else will. Saving is ‘the’ sure provider of a financial ‘backstop’ for life’s unthinkable or uncertainties; it enhances feelings of security and peace of mind. Once you have grown your savings, you create ‘seed money’ for higher-yielding investments. Nothing beats attaining this. Saving accords, you the freedom to live life on your terms.
In concluding today’s story, we reemphasise the following TIPS that will help you get started with your Money Smart journey if not attained yet:
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Understand your money ‘DNA’; how you perceive money vis a vis how it aligns to/ with your life values will guide you in this.
Once you figure out your money get organised and do it quickly.
Understand and know where your money goes; keep track of all your expenditure no matter how small, and begin to budget consistently.
Plan and make specific, measurable, attainable, realistic and time-bound saving/ investment goals.
Remember to be selfish when you get your income, pay yourself first (remember the 50 30 20 rule!), think of the 20 that you are supposed to save as the first bill you need to pay. Over time, you will be proud and smiling at how you will have grown your savings.
Spend smarter, don’t live outside your means; you can’t spend more than you make. Living outside your means simply means that your expenses exceed your income. Should this happen, you have three options to come out of this trap; increase income, reduce your expenses or do both. The choice is yours.
When in debt, continuously work at reducing it.
Save, Save and Save!
‘DNA’,
Until next week, we wish you a Money, Smart and Financially Healthy life! If not Money Smart yet, do not stress; begin now! Invest in Financial Education, learn as much as you can about money management and live a Financially Healthy life on your terms beyond the FLW.
Stay blessed and be a blessing to others and remember to keep safe!
For comments or questions email maria.karima@investrustbank.co.zm