The Debate (no.43); My Opinion on Financial Literacy

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A graduate who just finished his schooling at the university was offered a job. After fulfilling his job requirement for the month, he was paid his salary. On the evening of the payday, he called his friends for a drink. This outing squandered over 80% of his payout. After squandering the money, the after math awaits him. In this situation, is the graduate financially literate? In this publication, let’s see how financial literacy can help an individual.

I totally agree that financial literacy should teach as a mandatory subject. In the current educational system, we are really concerned with the theory aspect and the writing aspect neglecting the practical aspect. In my country, civil education was introduced to the educational curriculum to train students on how to be a better citizen. My question is how can a person be a better citizen when he or she can’t manage personal finances? Let’s think about this!

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Financial literacy is an asset a person can ever have. Imagine a person being paid $1000 daily but cannot manage finances, I’ll say that the person can’t make a difference. Financial power (Money) is just a tool with a great potential. Financial literacy can make an individual when to spend, invest, save or borrow. This key point is essential in the management of finances. The decisions made due to financial literacy can land us into financial freedom.

To answer this question, permit me to bring in a famous story of Zenith bank owner, Jim Ovia and Shina Peters. At a particular time, they both possess the same amount of money but they had different information about financial literacy. Jim Ovia invested in a business while Shina Peters bought houses and cars.

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Fast forward to today, Ovia’s investment created a renowned bank and secured a spot for him as one of the richest men. Peter's buildings and cars are now in the state of depreciation. With this example, we see that financial literacy has a great impact on an individual from the financial life to the physical life.

Due to the fact that financial literacy can help an individual, I suggest we go into investment mentality. If we invest a percentage of our money into profitable business or venture, then we can be assured of financial freedom.

Inviting @bossj23, @alli001 and @uduak01 to this contest.