Story: Franklin ASARE-DONKOH
The Executive Director for the Centre for Financial Literacy Education Africa, Mr. Peter Asare Nyarko has hinted that the word “Financial literacy” goes beyond handling and managing cash.
According to him. Financial literacy is a set of knowledge, skills, attitude, and behavior on how best one can manage his or her financial resources.
Speaking to Thelma Tackie on the GTV Breakfast Show, Mr. Asare Nyarko explained that financial literacy is a set of principles that guide an individual to manage their finances.
Some of the principles are: how to manage your paperwork properly, for example as an individual you have to keep safe your academic, birth, marriage, and financial investment certificates.
Again, one needs to put in order his documents covering landed properties such as land, buildings, cars, businesses, etc. so that when there is litigation over such property or properties in the future, you can provide it as evidence to avoid losing your wealth (property).
Another principle is to know your net worth which is your assets against the liabilities.
“One should be able to tell his cash flows, investments, retirement benefits, insurance cover, and the expenditure”, he opined.
Today finance and investing are also changing rapidly, thanks to the adoption of cryptocurrencies, decentralized finance, commission-free trading, and alternative forms of investing.
These changes are creating pathways for people at nearly every income level to participate and grow their wealth if they know how to utilize these tools. While technology has helped open doors, more education about these new platforms and assets is required to help unlock them.