April is Financial Literacy Month, a month marked annually as a powerful reminder of the importance of financial knowledge in shaping sound money management practices to ensure growth in personal finances and in business as well.
In line with this, NCBA Group has teamed up with Family TV to air a 5-part weekly show called Family Matters | Financial Clinic, which offers the audience, mostly the youth, valuable financial lessons from the bank’s experts. I’ve watched quite a few of the financial clinics and will be sharing them throughout this article. My absolute favourite so far is Home Ownership with Philip Omondi – NCBA’s head of Property Finance Sales.
The financial clinics curriculum is centered around topics like money management, smart saving, financial planning, investing, budgeting, and as mentioned above, home ownership. After all, it is one thing to know how to make money and quite another to know how to properly utilize it. We have seen businesses collapse due to the lack of basic practices like bookkeeping, and we have also seen people burn from financial success that they were not able to handle.
Being one of the biggest players in the economic empowerment of their customers, it follows that NCBA is very keen on financial literacy as a step towards financial inclusion.
In Kenya, as in many African countries, many people operate small businesses in the informal sector. With the rise of digital banking, mobile money, and the concerning trend of informal lenders, businesspeople have greater access to financial services, and there is, therefore, a greater need for knowledge of money management. Otherwise, many will fall into debt traps and fraud schemes since they are vulnerable to poor decision-making and the allure of what looks like easy money.
During Financial Literacy Month, organizations and institutions have the chance to educate people on practical skills to navigate money and plan their lives, including home ownership and retirement. For a growing economy like Kenya’s, financially empowered citizens are essential for sustainable development, poverty reduction, and wealth building. The month is also a call to action to invest in knowledge that drives long-term financial well-being.
The Central Bank of Kenya estimates financial literacy rates to be quite low, with over 75% struggling. The impact of financial literacy is huge since entrepreneurs are able to navigate the complexities of business and ensure economic success. For women and youth to make the best of their money for instance, they must have sufficient knowledge on things like bookkeeping, inventory management, budgeting, and sourcing and utilizing loans for the success of the business.
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