Financial Literacy Week Launched

THIS year's Financial Literacy Week was been launched in Accra yesterday with a call on the public to cultivate the habit of long term savings to speed up economic growth.

Mr. Seth Tekpeh, Deputy Minister of Finance and Economic Planning, who performed the launch said it was only through long-term savings that enough funds can be generated for economic growth.

The Financial Literacy Week, which ends on October 4, is the brain child of the Ministry of Finance and Economic Planning to raise awareness and enhance understanding of the public about the range of products and services being offered by financial institutions.

Mr. Tekpeh said "while the financial sector keeps expanding, surveys reveal several gaps in knowledge of financial issues, institutions and products among Ghanaians."

He said it was worrying to note that financial awareness among the youth was very low, saying "this does not augur well for a developing nation such as Ghana."

He said while the theme: 'Financial Literacy-Knowledge Is Money' is catchy and apt, the goal must not be on mere literal knowledge or awareness of financial products among households and businesses but there was the need to stress on both the benefits and risks.

"For example, credit and loans either through over-the-counter arrangements or a credit card are good for the economy; however, the global crisis enjoins financial and fiscal managers at home to explain to households, businesses and baffled voters that there are major risks in over-extending one's borrowing powers, including bankruptcy and loss of credibility," he said.

The Deputy Minister said "let us make no mistake: the goal for borrowing can be laudable, such as constructing roads or building a house, but the outcome can still be a painful experience."

He therefore urged financial institutions to double their efforts at educating the public about their products and services.

Mr. Alhassan Andani, Managing Director, Stanbic Bank who chaired the function said the week would create a platform to deepen their understanding on the need for good management of personal finances.

The event, he said, would have inputs from financial experts and institutions such as the Association of Bankers, National Insurance Commission, Ghana Insurers Association and Securities and Exchange Commission.

The celebration of the week, he said, was in line with recommendations in Ghana's Financial Sector Strategic Plan, which recognises the need to improve the financial literacy of Ghanaians to accelerate financial deepening in the economy.

He said lack of knowledge of financial and investment opportunities was preventing majority of people from accessing benefits from the sector.

Josephine Amoah, Commissioner of Insurance, said her outfit would make good use of the event to educate the public to patronise insurance products. The week, therefore, will equip the people with the tools and techniques for finance management and create opportunities and options for personal business and professional growth.

There will be informative broadcasts on national radio and television as well as a National Senior High School Quiz on financial literacy and a public forum.

Experts from the Finance Ministry, Bank of Ghana, the country's Securities and Exchange Commission and the Ghana Insurers Association would be on hand to answer audience's questions at the forum.

Source : Ghanaian Times