|
Getting your Trinity Audio player ready...
|
By Lilly Adjorkor ADJEI
Accra- 27 February, 2019
Widespread discussions continue on the recent multiple financial scandals within our nation.
These discussions often revolve on who to blame for these crises; the greed of some investors; the lack of knowledge of others; incompetence of regulators such as Bank of Ghana, auditors and the institutions themselves.
The solutions were then easy to identify.
But is this the first time Ghana is experiencing such turmoil within the financial sector?
The answer is No!
We have had the likes of CB Net Marketing Concepts, E Finance, DKM and now The Menzgold saga, as well as the collapse of various banking institutions.
Year on year there is one financial scandal or the other where citizens are duped of their hard earned resources’- with little to no punishment unleashed on the culprits by the regulating authorities.
Does the quote “When solving problems, dig at the roots instead of just hacking at the leaves” (Anthony J. D’Angelo) mean anything to us at all?
Why aren’t we as a nation thinking of introducing financial literacy into our schools, colleges and universities either as a co-curricular activity or compulsory subject?
This measure will attempt to solve the problem from its roots.
We are brought up in this part of the world without a rational concept of money.
Parents spend thousands of cedis to educate their children in multiple spheres of life but do not instill financial literacy in them.
The irony is that the sole purpose for their sacrifice is to give their children the skills and tools necessary to make money!
But ignorance of how to create money and how money works; the concept of investing and doing it right; the concept of risk and how to hedge against it; the concept of spending and how to spend wisely, have cost the nation billions.
If our mothers, fathers, brothers and sisters had this education, they could have made a financially educated guess that the high percentages promised them by these scandalous companies were just unrealistic, thereby mitigating or even avoiding some of these scams.
Money shouldn’t be a myth to children.
What collateral damage could children face when introduced to the concept of money?
What happened to our susu boxes?
You might wonder why some people are rich and wonder why “Rich Dad, Poor Dad” is one of the bestselling books of all time?
My understanding is that it is because they all touch on and teach their subjects the concept of money.
What useful method can we start with? The jar system is an excellent method to teach children about financial discipline as early as two years old.
A two-year old will understand the concept of investing and saving if they are taught to be diligent in sticking to the rules of the jars.
What rule?
Do not take money in one jar for another purpose.
From the diagram above, one may ask why allocate 10% to savings and another 20% to investment? What’s the difference?
The reason is to allocate 10% of earnings solely for emergencies and put away 20% in either a financial instrument like a bond or treasury to strategically build wealth.
The element of giving to others is not overlooked either.
Giving is a form of investment and as the proverbs of Solomon rightly puts it “A gift opens the way and ushers the giver into the presence of the great” and “A generous person will prosper; whoever refreshes others will be refreshed”.
The diagram upgrades the 80/20 rule to 50/20/30 rule. Spend 50%, share 20% and pay yourself 30%.
Robert T. Kiyosaki the author of “Rich Dad, Poor Dad”, states clearly,
“If people are prepared to be flexible, keep an open mind and learn, they will grow richer and richer through the changes. If they think money will solve the problems, I am afraid those people will have a rough ride. Intelligence solves problems and produces money. Money without financial intelligence is money soon gone.”
Financial literacy is imperative. Teach it to your kids and if you can’t teach, the next time you go for a PTA meeting at your child’s school ask for it. …..no, insist on it.
We must therefore take a cue from our woes and adopt a root based solution to stop inflicting financial pain on ourselves.
Money does grow on trees when the seed of money is planted right.
Feedback; [email protected] or WhatsApp Lilly on (+233) 057 867 3383).
Writers and Shakespeares Ghana Limited exist to be a moral and intellectual guide to the best practice of PR and integrated communications around the world, beginning with Ghana.