Hosted By Banking Transformed On 1st September, 2021
“If everyone, including political leaders, is given the opportunity to learn the essential principles to smart money management, it will enable them to better plan ahead and keep their financial house in order and help others to do the same” Michael Ochieng Nyawino (2019). What the Executive Director at Christian Community Healthcare Foundation says was the heart of the webinar that was presented by Industrial Bank in collaboration with EVERFI.
According to the Global index report; women in the developing nations, such as Kenya, have a 20% less likelihood of owning a bank account in a formal financial institution and 17% less likely to formally borrow money; deficiency in their financial literacy is one of the causes. Financial literacy is basically an individual’s comprehension of concepts such as debt, investing and saving which then contributes to their general definition of financial well-being; it begins with the awareness of matters concerning money.
For Industrial Bank, the aim is always to make a difference in the lives of their customers and employees even as they impact economic development in communities. Over time, they have achieved this by creating unique products and services that meet customers where they are and also supplementing the teachings of financial empowerment while still making money for the bank and mitigating risks. This is worth emulating in attempting to transform communities.
Information and a person’s ability to make sound decisions go hand in hand. Any business owner should therefore ensure that their customers can visualize and understand the elements of financial literacy. The simplest form of education to offer is how customers can save, invest and/or spend their income by clearly distinguishing their needs from wants. It is important to note that financial education should not be limited to schools and churches but other uncommon avenues such as jails and shelters. This is because financial literacy crosses all spectrums of age, sex, income, social status among others. Above all, in this COVID-19 era, the most can be attained by adopting digital approaches to financial education.
Finally, there is a very strong association between financial literacy and social issues. It is said that financial literacy is a great equalizer in the battle against social justice. It contributes to the general decrease of stress levels in individuals and reduces chances of family discord. There is therefore an increasingly urgent demand for financial literacy in communities.