If knowledge is power then financial knowledge is security. Financial literacy has been identified globally as a critical tool for development – issue relating to budgeting, savings, investment and the management of risks are relevant for the individual, households and businesses in their development process. Making decisions on these issues depending on the level of complexity require at least basic financial literacy levels which involves the ability of the financial consumer to appreciate the essential and basic knowledge that will help make sound financial decisions and judgments.
Personal financial interest and the interest of the national economy are inextricably linked. The financial health of individuals and households contributes to the financial health of the economy and act as building blocks of the economy. Individuals and households spending, saving and investment significantly impact economic growth. The milestone decisions we make throughout our lives ultimately affect our financial security and ultimately the financial security of our domestic economy.
The strength of our country therefore depends on an informed public. The greater our grasp of issues including saving, investment, plan for contingencies through insurance and debt, the better we are conscious of our financial circumstance and our ability to improve it. When individuals and households are financially secured they face less risk and ultimately constitute the backbone of the economy.
It is for this reason that Government has institutionalized an annual National Financial Literacy Week as long-term financial sector policy priority measure, aimed at raising awareness on the range of financial products and services available to consumers to help them better understand and manage their personal finances, thereby improving financial behavior of the citizenry.