Over the past eight years, I have been actively involved in writing, training and coaching on topics relating to financial education. Through interaction with thousands of Jamaicans from all walks of life, I have realised that the number one difficulty that prevents most people from achieving their financial goals is their lack of understanding of simple money principles. Financial literacy is defined as the ability of individuals to make appropriate money decisions by learning the principles that relate to management, growth and preservation of their money. When people are educated regarding the appropriate actions to take with their money, then they can be more likely to keep towards their goals, manage their debt, buy assets for example a home, and make positive contributions to economic development regarding the country. Anecdotal evidence points to an overwhelming demand from Jamaicans for practical facts on or about simple financial strategies for example budgeting, debt control, investing choices and retirement and estate planning
Consequently some financial institutions have been offering public seminars to address little of these issues, their initiatives have been insufficient to meet the country's requirements. There is now an urgent need to give a coordinated local financial literacy programme to adequately disseminate critical facts throughout all sectors regarding the Jamaican society. I many times wonder howcome I learnt so many subjects in college that later proved irrelevant to my life, yet a crucial topic for example money management was not ever addressed in my primary to tertiary education. Around the world, financial literacy teaching is an important focus of governmental agencies involved in finance. Let us look at some regarding the programmes that have been developed in some other countries:
FDIC Money Smart Programme. The Federal Deposit Insurance Corporation (FDIC) was established Within the United States to preserve and promote public confidence within the financial system by insuring deposits in banks and thrift institutions. In 2001, this independent agency regarding the US federal government developed a local about insurance teaching campaign called Money Smart, to "help individuals outside the financial mainstream develop financial skills and positive banking relationships. The FDIC collaborates with financial institutions, non-profit organisations, and community- and consumer-based groups to disseminate financial teaching creating use of its Money Smart educational fabric which covers topics for example saving, borrowing, credit card management and building ownership. To date, the agency reports that it has distributed over 750,000 things of Money Smart curricula and has reached over 2
4 million consumers throughout the world. NFLP in Trinidad & Tobago. The Local Financial Literacy Programme (NFLP), launched in January 2007, is spearheaded by the Central Bank of Trinidad and Tobago. Regarding to NFLP's website, the purpose regarding the programme is to develop "a nation of citizens who are conscious about and capable of managing their finances. " The NFLP's aim is to change people's beliefs, attitudes and behaviours around money issues, and release them the skills to function in a sophisticated financial environment
The NFLP carries out primary college interventions and is currently working with their Ministry of Teaching to incorporate financial literacy within the secondary college curriculum. They have already trained over 200 teachers to impart the financial fabric in schools. Other initiatives with addressing the wants of persons with disabilities, with documents converted to Braille and sign language in their television advertisements. The NFLP has also developed financial literacy training fabric relevant to mini and micro entrepreneurs. ECCB's Financial Literacy Programme
The Eastern Caribbean Central Bank (ECCB) was playing the lead role in promoting financial teaching within the Eastern Caribbean Currency Union (ECCU). This union comprises seven countries within Antigua & Barbuda, St Lucia, Montserrat and Dominica. Regarding to ECCB, "educating the public about financial and economic matters is key to supporting the bank's stability, growth and development objectives. The ECCB teaching initiative includes offering ten-week savings and investment courses teaching topics for example budgeting, understanding loan documents, avoiding financial scams and understanding wills; after-work seminars, a monthly financial newsletter; schools programmes with presentations, competitions and mentorship components; radio programmes; and financial month activities held every year in October. CARTAC Financially Fit Campaign
The Caribbean Regional Technical Assistance Centre (CARTAC), a regional resource which gives training and assistance in economic management for member countries, is funded by worldwide agencies for example the Canadian Worldwide Development Agency (CIDA), the Inter-American Development Bank (IDB) and the Worldwide Monetary Fund (IMF). CARTAC recently launched its financial literacy webpage that is drafted to educate readers on financial terms and pertinent facts to help them to increase wealth and get ready for unforeseen situations. The webpage gives practical guidance on topics for example budgeting, saving, risks and returns of investments, and estate planning; and also offers resources to assist Central Banks and other regional financial supervisory agencies. Given their current emphasis on achieving positive economic changes, it's now the done time for our regional financial authorities to join with the over 60 countries around the earth which have developed structured programmes to educate their citizens about simple financial principles
No comments:
Post a Comment