Financial literacy is the essential element for a smart relationship with money. It is the start of a lifelong journey of managing the financial aspects of your life, knowing the basics of money management, budgeting, saving, and investing contributes to a more successful and less stressful life. The earlier you start to become financially literate, the better off you will be and this determines your future. The range of skills that fall under the financial literacy training includes household budgeting, managing debt, evaluating financial products, choosing investments among others. Many of these skills require at least a working knowledge of key financial concepts, such as compound interest and the time value for money
Through VSLA, FFS and other social structures, COVOID has been rolling out financial literacy intervention. These interventions have been proven to be key in fostering the financial behaviors of targeted communities, thus improving livelihoods of vulnerable communities.
Why Financial Literacy training?
- Financial literacy can prevent devastating financial mistakes: Naive financial decisions can have devastating effects. The payments on a floating-rate loan can rise unexpectedly.
- Financial literacy prepares people for financial emergencies: Losing family properties or having a major unexpected expense is never easy, but the blow is cushioned for those who have an emergency fund.
- Financial literacy can help individuals reach their goals: By understanding how to budget and save money, people define their immediate necessities and focus their minds ahead to important financial goals.
- Financial literacy fosters confidence: With knowledge about finances, individuals can approach major life choices with greater confidence. They'll be more likely to achieve the outcome they desire and less likely to be surprised or hurt by unforeseen outcomes.
- Financially literate people can cope with the basics of spending, saving, borrowing, and planning.
- A strong foundation in financial literacy supports life goals, such as paying for education or retirement, using debt responsibly, and running a business effectively.
- Financially literate people are not vulnerable to fraud.
- Key aspects of financial literacy include learning how to create a budget, plan ahead, and make wise decisions about investing.
