Banc ABC Managing Director (MD), Thembi Segage, this week told a Financial Literacy workshop that the Global Survey on Consumer protection and Financial Literacy by both the World bank and G20 has found that access to basic financial services is a fundamental element of inclusive economic systems and contributes to poverty reduction.
“We aim to sensitize our customers and the public about making the most of the money they earn, no matter how much or little it is,” Segage said and added: “We all deal with finances, but are we financially literate?”
She explained that financial literacy is a set of skills and knowledge that allows an individual to make informed and effective decisions with all their financial resources with emphasis on the importance of savings and investments.
For her part, BancABC Financial Literacy Training Coordinator, Tutsie Sigwele presented on the components of the workshop among them, ensuring attendants identify the importance of being financially literate, know how and why they should budget, the importance of protecting one’s assets as well as understanding the three financial pillars of creating wealth.
“Money can mean a lot of different things to each one of us regardless of our income level,” she stated during the workshop.
She cautioned people to be wary of the emotions they attach to money as they could push them to spend money recklessly.
She cited an example of people who relieve stress by going shopping saying if, hypothetically, one has a stressful day six times a month, they would have to go shopping 72 times a year.
“My guess is that the money used for these splurges would not have been included,” she said.
Sigwele added that having some money left over after paying all the necessary bills and still have some disposable income to sustain one for the month looking at daily or weekly expenses such as fuel to work and mini groceries, is a great feeling.
“It is possible, you just have to plan and prioritize, learn to differentiate your needs from your wants. Some things you can do without if you cannot afford them immediately,”said Sigwele.