Financial Literacy is Key To Financial Inclusion — Here is why

by May 8, 2020Uncategorized0 comments

Financial Literacy is Key To Financial Inclusion

Financial inclusion is the process of ensuring equality of access to useful and affordable financial services for all individual and businesses irrespective of socioeconomic class and location. A Key limiting factor to achieving this laudable goal is the low level of financial literacy in both the urban and rural population — especially in the later.

Unfortunately, the rural population, which is about 71% of the total population of the country is home to the highest number of financially excluded people. Financial literacy is about educating people on basic financial principles and concepts such as investments, savings, debts management and budgeting.

Financial illiteracy affects people of all ages and status, it often creates a massive divide between you and your goal to achieve financial security and stability. Mid and low-income earners suffer the most because they have to keep up with the rat race of dependency. Some have gone bankrupt because of poorly managed finances and bad investment decisions.

Financial education benefits everyone, including the young school leavers. Sadly, the educational qualification does not guarantee financial literacy. One of the basic disciplines to be instilled is the culture of savings. The benefits of saving cannot be overemphasized. As they say, good fortune is what happens when opportunity meets with planning.

Yes, human needs are insatiable, but it is also common knowledge the importance of scaling our preferences. The younger generation should consider planning for retirement at the beginning of their career. While the older generation can also take advantage of financial-technological solutions that can help them save as well as give the convenience of banking.

Money education is important for the individual so as to draw the line between assets and liabilities. Also, they can decide what is in for savings and whether they can afford the luxury of being indebted.

This will, no doubt, create an increase in demand for innovative financial solutions to aid effective spending and money transactions, to identify profitable saving options and access to hassle-free loans at little or no cost at all.

To meet this demand, government, organizations, and individuals are looking to more digitalized solutions because of its ease, convenience and capacity to reach a wider spectrum of the population. Simply put, anyone with a mobile phone can access financial services at any given time.

At NOWNOW Nigeria, we understand the need for financial literacy to achieve financial inclusion, so we do well to inform and educate our customers about this very important aspect of their finances.

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