BANKING

Financial Literacy in Schools

Published

1 year ago

Financial Literacy in Schools

In today’s rapidly changing and complex financial landscape, the importance of financial literacy in schools cannot be overstated. As a content creator committed to providing original, helpful, and reliable information to your readers, you understand that one of the most valuable skills we can impart to the next generation is the ability to navigate the world of finance effectively.

This brings us to a critical question: Should financial literacy be an integral part of the educational curriculum in schools? In this article, we will explore the significance of introducing financial literacy in schools and how it can empower young minds to make informed financial decisions. Join us on this journey as we unravel the key aspects of this essential topic and its potential impact on the future financial well-being of our youth.

Financial Literacy in Schools

The Importance of Financial Literacy

Financial literacy is a cornerstone of individuals’ well-being, pivotal in shaping their financial futures. In this era of complex financial landscapes, understanding the importance of financial literacy is paramount.

Financial literacy is the foundation upon which individuals make informed decisions regard financial decisions with the knowledge and skills necessary to make money effectively. Without it, people may be in financial situations, often characterized by debt, limited savings, and a lack of investments.

One of the primary reasons financial literacy matters is its direct impact on personal finance. When individuals possess a solid understanding of financial concepts, they can create and adhere to budgets, avoid unnecessary debt, and make wise spending decisions. This leads to improved financial stability, reduced stress, and greater control over their financial lives.

Furthermore, financial literacy greatly influences savings habits. Financially literate individuals are more likely to save consistently and make strategic choices about where to put their money. They understand the significance of building an emergency fund, saving for future goals, and planning for retirement. As a result, they are better prepared to handle unexpected expenses and achieve long-term financial objectives.

Financial literacy profoundly impacts investments, another critical aspect of personal finance. People who are well-versed in financial matters can assess investment options, understand risk-reward ratios, and make informed decisions about where to invest their money. This can lead to higher investment returns and a more secure financial future.

The importance of financial literacy cannot be overstated. It empowers individuals to take control of their finances, make prudent choices about spending and saving, and navigate the complexities of investments. Being financially literate is not just a skill; it’s a crucial component of a healthy and prosperous financial life.

Economic Benefits

Financial literacy education in schools offers numerous economic benefits that align with your preference for original, helpful, reliable, and human-friendly content. Here’s a summary of the economic advantages of integrating financial literacy into the school curriculum:

Improved Career Opportunities: Financially literate individuals are better equipped to make informed career choices. They can assess the financial implications of different career paths, leading to increased earning potential and job satisfaction.
Reduced Student Loan Debt: Schools that teach financial literacy empower students to make responsible decisions about college financing. This can lower student loan debt burdens, reducing financial stress post-graduation.
Increased Savings and Investment: Financially educated students tend to save and invest wisely. This contributes to personal wealth accumulation, economic stability, and the potential for future entrepreneurship.
Enhanced Economic Stability: Widespread financial literacy fosters a financially responsible population. This, in turn, can contribute to economic stability by reducing the number of individuals in financial crises and increasing overall consumer confidence.
Entrepreneurial Growth: Financially literate students are more inclined to start and manage businesses successfully. This can stimulate entrepreneurship, create jobs, and drive economic growth at the local and national levels.
Informed Consumer Behavior: Financially educated individuals make informed choices as consumers. They are less susceptible to predatory lending practices and more likely to engage in responsible spending, benefiting the economy.
Reduced Poverty and Income Inequality: By teaching financial skills early in life, schools can help break the cycle of poverty. Financially literate individuals are better equipped to manage their finances, reducing income inequality over time.
Improved Financial Decision-Making: Financial education equips students with the knowledge and skills to make sound financial decisions. This results in reduced financial stress, better financial planning, and economic well-being.
Retirement Readiness: A financially literate workforce is more likely to save for retirement adequately. This can reduce the burden on social safety nets and ensure a more financially secure elderly population.
Responsible Credit Management: Schools that teach financial literacy help students understand the importance of responsible credit use. This leads to better credit scores, lower interest rates, and improved access to credit when needed.

Incorporating financial literacy into the school curriculum benefits individual students and has far-reaching economic implications. It contributes to a financially savvy and responsible society, ultimately promoting economic growth and stability.

Challenges and Solutions of Financial Literacy in Schools

Lack of Curriculum Integration: One of the primary challenges is the need for more integration of financial literacy into the school curriculum. Many schools prioritize traditional subjects, leaving little room for financial education.
Teacher Preparedness: Another issue is the readiness of teachers to teach financial literacy. Not all educators are adequately trained in this field, hindering effective instruction.
Complexity of Financial Topics: Financial concepts can be complex, making it challenging for students to grasp them fully. This complexity can be a barrier to effective learning.
Limited Resources: Schools may need more resources, such as textbooks or online tools, to provide comprehensive financial education.
Short-Term Focus: Many students are more focused on short-term goals, and the importance of long-term financial planning may not be fully appreciated.

Solutions for Improving Financial Literacy in Schools

Curriculum Integration: Schools should incorporate financial literacy into their curricula, starting from an early age. This can include age-appropriate lessons on budgeting, saving, and investing.
Teacher Training: Provide teachers with specialized training in financial education. This can help them deliver content more effectively and confidently.
Interactive Learning: Use interactive methods such as simulations, games, and real-life scenarios to make financial education engaging and practical.
Guest Speakers and Workshops: Invite financial experts or professionals to conduct workshops and seminars in schools, giving students exposure to real-world financial perspectives.
Online Resources: Utilize online resources and platforms that offer interactive financial education modules. These resources can complement traditional classroom teaching.
Parental Involvement: Encourage parents to participate in their children’s financial education. Schools can host parent-teacher meetings focused on financial literacy.
Emphasize Long-Term Goals: Teach students the importance of setting long-term financial goals, such as saving for college or retirement, to instill a sense of responsibility.

In conclusion, addressing financial literacy challenges in schools requires a multifaceted approach that includes curriculum integration, teacher training, interactive learning methods, and community involvement. By implementing these solutions, schools can better equip students with the financial knowledge and skills they need for a successful future. See

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BANKING

Afreximbank Acts as Joint Lead Manager on Ecobank Transnational Incorporated’s USD 400mn Senior Unsecured Note Issuance

Published

1 month ago

Christopher

The proceeds of the note will fund general corporate purposes of the issuer, including refinancing of a USD350 million senior bridge-to-bond loan facility that was jointly coordinated by Afreximbank in March 2024.

African Export-Import Bank (“Afreximbank”) (www.Afreximbank.com) is pleased to announce that it has successfully acted as Joint Lead Manager and Bookrunner on a USD 400 million 10.125% Rule 144a/RegS senior unsecured note issuance by Ecobank Transnational Incorporated (“ETI”) due in October 2029.

The note issuance achieved peak orderbook oversubscription of 2.1x, backed by more than 70 high-quality and diverse investors comprising development finance institutions, asset managers, commercial banks and insurance companies from Africa, the UK, USA, Europe and the Middle East.

Professor Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, commenting on the transaction, said: “We are pleased to have supported Ecobank Transnational Incorporated (“ETI”) in placing the first public Eurobond issuance by any Sub-Saharan African financial institution since 2021, following our bridge financing support earlier in the year. This transaction underscores Afreximbank’s capacity and readiness to structure innovative market access solutions for our pan-African banking partners.”

Afreximbank’s Advisory and Capital Markets (ACMA) department acted as Joint Lead Manager and Bookrunner on the issuance, working alongside international and African partners.

Distributed by APO Group on behalf of Afreximbank.

BANKING

International Islamic Trade Finance Corporation (ITFC) and the Central Bank of Nigeria Successfully

Published

2 months ago

Christopher

International Islamic Trade Finance Corporation (ITFC) and the Central Bank of Nigeria Successfully

These workshops form part of ITFC’s Integrated Trade Solutions (ITS) framework, aligning with the organization’s goal of providing holistic trade financing interventions in OIC member countries.

The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-idb.org), a member of the Islamic Development Bank (IsDB) Group, in partnership with the Central Bank of Nigeria (CBN), successfully concluded a workshop on Non-Interest Banking and Trade Finance in Nigeria. Held from 17th to 19th September 2024 in Abuja, the sessions aimed to enhance capacity and knowledge in Islamic banking principles, trade finance products and services, and how different financial toolkits are applied in Islamic finance from operational and business perspectives.

International Islamic Trade Finance Corporation (ITFC) and the Central Bank of Nigeria Successfully

Nigeria’s Islamic finance industry, valued at US$3.8 billion, is one of the major Shariah compliant industries in Africa. Despite some challenges such as low public awareness and a smaller capital base compared to conventional banks, Islamic finance has been substantially contributing to reduce financial exclusion and improve access to affordable finance in the country. The three-day workshop was designed to bridge prevailing knowledge gaps focusing on key areas such as Sukuk issuance and main non-interest banking products basics.

Delivered under ITFC’s Integrated Trade Solutions framework, the workshop equipped professionals with the skills to promote Islamic finance in Nigeria while also highlighting ITFC’s wide range of trade financing services.

Participants reported a significant boost in understanding Islamic banking and trade finance, and the workshop showcased ITFC’s contributions to economic development through sustainable financial solutions.

Eng. Nasser Al Thakair, ITFC, remarked: “ITFC is committed to supporting Nigeria’s efforts in Islamic finance, tailoring this workshop to address the unique challenges faced. We will continue to provide the expertise and financial backing needed to grow Islamic finance in Nigeria and beyond.”

Over 30 professionals from the Central Bank of Nigeria, non-interest banks, and other financial institutions attended, further advancing Islamic finance in the country.

As Nigeria positions itself as a leading market for Islamic finance in Africa, ITFC remains dedicated to advancing trade finance and supporting the growth of the sector for long-term economic impact.

Distributed by APO Group on behalf of International Islamic Trade Finance Corporation (ITFC).

About the International Islamic Trade and Finance Corporation (ITFC):

The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving the socioeconomic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided over US$75 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries’ needs. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity-building tools, which would enable them to successfully compete in the global market.

FINTECH

Kazang Pay launches card acquiring service in Zambia

Published

2 months ago

Christopher

Kazang (www.Kazang.com), the prepaid value-added services (VAS) and card acquiring business within JSE-listed fintech Lesaka Technologies, has launched its Kazang Pay card acceptance solution for merchants in Zambia. Kazang Pay makes it affordable for merchants to accept card payments on the same Kazang terminal they use to sell prepaid products and services.

Kazang Pay launches card acquiring service in Zambia

The Kazang Pay enabled terminal in Zambia accepts VISA debit and credit cards as well as mobile wallet payments. Payments are settled to the merchant’s Kazang wallet on the same day. It’s as easy as letting the customer tap or insert their bank card and enter their PIN on the secure scramble PIN pad.

Kazang operates around 12,000 VAS terminals in Zambia. The goal is to enable the majority to accept card payments over the next six months. Benefits to merchants include low transaction fees and no monthly terminal rental fee for those that meet a modest monthly transaction threshold as well as the opportunity to grow their business through card acceptance.

Kazang is Zambia’s largest VAS point-of-sale terminal provider, enabling mobile money payments, bank and mobile money cash in and out, bill payments, airtime, Zesco, and many other prepaid services on one platform. The addition of card acceptance makes the platform even more comprehensive for merchants and consumers alike.

The launch of Kazang Pay in Zambia follows the introduction of the solution in South Africa, where around 60,000 small and micro merchants use Kazang Pay to accept card payments. In Zambia, there are around 3.8 million debit, credit and ATM cards in issue and 41,000 point of sale (POS) terminals in place. The value of POS transactions has grown to K 111.4 billion by 2022 from less than K 20 billion in 2018, according to the Bank of Zambia.

Says Leon de Wit, managing director at Kazang Zambia: “Zambia has made enormous strides in terms of financial inclusion, with card usage and penetration growing at a rapid pace. With Kazang Pay, merchants can now easily accept card payments on the same all-in-one terminal they already use for vending of VAS products.

“Card transactions help merchants to grow basket sizes and potentially attract more customers, and at the same time, reduce the risks and costs of handling cash. Moving towards digitalised payments will also enable merchants to track sales, manage cash flow, and create a footprint that could make it easier for them to access loans.”

Ashley Naidoo, director of Kazang Pay in South Africa says: “Our Zambian merchants have eagerly embraced our card acquiring service as a valuable part of our one-stop solution. Following the launch of Kazang Pay in Zambia, we have seen higher VAS sales across our merchant base and much-improved merchant retention and with our card acquiring solution we now appeal to a broader merchant base.”

Distributed by APO Group on behalf of Kazang.

ABOUT KAZANG:
Kazang (www.Kazang.com) is a leading provider of cash and digital solutions to merchants in Southern Africa’s informal economies. Our fintech solutions include a diverse range of value-added services (VAS), card acquiring, secure cash vaults and supplier payments platforms. Operating with a network of approximately 90,000 active devices, we process approximately 2.2 million transactions daily in markets such as South Africa, Namibia, Botswana, and Zambia.

We are dedicated to helping small and medium merchants grow and succeed, through increasing their sales, making their businesses more efficient and reducing their risks with its holistic portfolio of products and services. Kazang is a member of Lesaka Technologies (https://LesakaTech.com).

ABOUT LESAKA TECHNOLOGIES, INC:
The Connect Group and Kazang was acquired by Lesaka Technologies, Inc. in April 2022. Lesaka Technologies, (Lesaka™) is a South African Fintech company that utilizes its proprietary banking and payment technologies to deliver superior financial services solutions to merchants (B2B) and consumers (B2C) in Southern Africa. Lesaka’s mission is to drive true financial inclusion for both merchant and consumer markets through offering affordable financial services to previously underserved sectors of the economy. Lesaka offers cash management solutions, growth capital, card acquiring, bill payment technologies and value-added services to retail merchants as well as banking, lending, and insurance solutions to consumers across Southern Africa.

Lesaka has a primary listing on NASDAQ (NasdaqGS: LSAK) and a secondary listing on the Johannesburg Stock Exchange (JSE: LSK). Visit www.LesakaTech.com for additional information about Lesaka Technologies (Lesaka ™). $LSK / $LSAK