Financial Literacy as a Compass to Financial Freedom

Financial literacy is often thrown around, but what does it truly encompass? Financial literacy is the ability to understand and manage your money effectively. It is the knowledge and skills that empower you to make informed financial decisions, navigate complex financial products, and ultimately achieve your financial goals. Whether you’re a young adult just starting or a seasoned saver nearing retirement, financial literacy is the compass that guides you towards financial freedom.

There are building blocks to financial literacy. Financial literacy is not one monolithic or unified concept. It is a collection of interconnected skills and knowledge. Below are some of the key building blocks we need to grasp:

UNDERSTANDING INCOME AND EXPENSES

Income and expenses are foundational to financial literacy. They give you a clear picture of your financial situation and empower you to make informed decisions about managing your money effectively.

Importance of Understanding Income and Expenses:

Financial Awareness: Understanding sources of income and tracking expenses fosters financial awareness by helping you recognise how much money you earn and where it goes. This awareness is crucial for maintaining control over finances and avoiding financial pitfalls.

Budgeting: Income and expenses are the building blocks of budgeting. By knowing how much money is coming in and how much is being spent, you can create realistic budgets that align with your financial goals and priorities.

Savings and Spending Decisions: Knowledge of income and expenses enables you to make informed decisions about saving and spending. You can identify areas where you can cut costs to increase savings or allocate funds towards specific goals, such as an emergency fund or retirement savings.

Debt Management: Understanding income and expenses is essential for managing debt effectively. It allows you to assess your ability to make debt payments and avoid taking on more debt than you can afford.

Strategies for Understanding Income and Expenses

Track Income Sources: Identify all sources of income, including salaries, wages, bonuses, freelance work, investments, and any other sources of revenue. Track the frequency and amount of income received from each source.

Monitor Expenses: Keep a record of all expenses, including fixed costs (e.g., rent, mortgage, utilities) and variable expenses (e.g., groceries, dining out, entertainment), then categorise expenses to gain insights into spending patterns and identify areas for potential savings.

Create a Budget: Use the information gathered about income and expenses to create a budget that outlines how money will be allocated towards various expenses and savings goals. Make adjustments as needed to ensure that spending aligns with income and financial priorities.

Use Budgeting Tools: Budgeting tools and apps streamline the process of tracking income and expenses, categorise transactions automatically, and provide insights into spending habits.

Review Regularly: Regularly review income and expenses to ensure they remain aligned with financial goals and priorities. Adjust the budget as circumstances change, such as changes in income or unexpected expenses.

Understanding income and expenses lays the groundwork for sound financial decision-making and is essential to overall financial literacy. By developing this foundational knowledge, you can take control of your finances, set achievable goals, and work towards financial stability and success.

 

BUDGETING AND CASH FLOW MANAGEMENT

Budgeting and cash flow management are essential components of financial literacy. They play a crucial role in helping you maintain control over your finances and work towards achieving your financial goals. Creating a budget allows you to allocate your income towards your expenses and savings goals. It’s about living within your means and ensuring positive cash flow.

Importance of Budgeting and Cash Flow Management

Living Within Means: Budgeting ensures that you spend within your means by allocating income towards expenses, savings, and financial goals. It helps prevent overspending and encourages responsible financial behaviour.

Financial Awareness: Budgeting promotes financial awareness by providing a clear overview of income and expenses. It allows you to track where your money is going and identify areas where you can cut back or reallocate funds to align with your priorities.

Managing Cash Flow: Effective cash flow management ensures you have enough liquidity to cover your expenses and financial obligations. You can avoid cash flow shortages and plan for irregular or unexpected expenses by monitoring income and expenses.

Prioritising Financial Objectives: Budgeting helps you prioritise your financial objectives, whether building an emergency fund, paying off debt, saving for a home or retirement, or investing for the future. It allows you to allocate resources efficiently towards your most important goals.

Strategies for Budgeting and Cash Flow Management

Identify Income Sources: Start by identifying all sources of income, including salaries, wages, bonuses, freelance work, investments, and any other sources of revenue. Then, determine your total monthly or annual income.

Track Expenses: Keep a record of all your expenses, categorising them into fixed expenses (e.g., rent/mortgage, utilities) and variable expenses (e.g., groceries, transportation, entertainment). Use tools such as spreadsheets or budgeting apps to track your expenses effectively.

Create a Budget: Based on income and expenses, create a budget that outlines how income will be allocated towards various categories, including necessities, discretionary spending, savings, and debt repayment. Set realistic limits for each category to ensure that spending remains within budget.

Review and Adjust: Regularly review your budget to assess your progress towards financial goals and identify any areas where adjustments may be needed. Be flexible and willing to make changes as circumstances change, such as changes in income or unexpected expenses.

Emergency Fund: Prioritize building an emergency fund to cover unexpected expenses or financial emergencies. Aim to set aside enough funds in a liquid, easily accessible account to cover 3-6 months’ living expenses.

Budgeting and cash flow management are essential skills for financial success. By creating and sticking to a budget, individuals can take control of their finances, reduce financial stress, and work towards achieving their long-term financial goals.

DEBT MANAGEMENT

Debt management is a critical aspect of financial literacy, as it involves understanding how to effectively navigate debt obligations to maintain financial stability and avoid potential pitfalls. Debt can be a powerful tool, but it needs to be managed responsibly. Understanding different types of debt, interest rates, and repayment strategies is crucial for avoiding financial pitfalls.

Debt Management and its Significance

Responsible Financial Behaviour: Debt management promotes responsible financial behaviour by encouraging you to borrow only what you can afford to repay and to use debt as a strategic financial tool rather than a crutch.

Financial Stability: Effective debt management helps you maintain financial stability by preventing excessive debt accumulation, reducing the risk of financial distress, and avoiding negative consequences such as bankruptcy or foreclosure.

Cost Savings: Understanding debt allows you to make informed decisions about borrowing, including comparing interest rates, terms, and fees associated with different types of debt. This knowledge enables you to minimise borrowing costs and save money over time.

Creditworthiness: Responsibly managing debt contributes to building and maintaining a positive credit history and score. A good credit score opens doors to favourable borrowing terms, such as lower interest rates and higher credit limits, which can save you money and improve your financial flexibility.

Strategies for Debt Management

Understand Types of Debt: Different types of debt carry varying terms, interest rates, and repayment requirements. It’s essential to understand the differences between secured debt (backed by collateral, such as a mortgage or auto loan) and unsecured debt (not backed by collateral, such as credit card debt or personal loans), as well as the implications of each.

Budget for Debt Repayment: Allocate a portion of income towards monthly debt repayment as part of your budget. Prioritise paying off high-interest debt first while making at least minimum payments on other obligations to avoid late fees and penalties.

Negotiate Terms: In cases of financial hardship or difficulty making payments, consider negotiating with creditors to modify repayment terms, such as extending the repayment period or negotiating lower interest rates. Many creditors are willing to work with borrowers to find mutually beneficial solutions.

Avoid Accumulating New Debt: Avoid accumulating new debt whenever possible while paying off existing debt. Practice disciplined spending habits and live within your means to avoid falling into a cycle of debt.

Seek Professional Help if Needed: If the debt becomes overwhelming or unmanageable, seek assistance from reputable credit counselling agencies or financial advisors who can provide guidance, debt consolidation options, or debt management plans tailored to your situation.

Debt management is integral to financial literacy. It enables you to make informed decisions about borrowing, repayment, and your overall financial well-being. By understanding and effectively managing debt, individuals can achieve greater financial security and work towards their long-term financial goals.

SAVING AND INVESTING

Saving and investing are fundamental pillars of financial literacy. They serve as key strategies for building wealth, achieving financial goals, and securing financial well-being over the long term.

Building wealth requires saving and investing. Financial literacy equips you with the knowledge to choose appropriate savings vehicles and understand the basics of investing, including risk tolerance and diversification.

The Significance of Saving and Investing

Wealth Accumulation: Saving and investing allow individuals to accumulate wealth over time by setting aside money for future use and leveraging the power of compounding returns to grow their assets.

Financial Security: Saving and investing provide a safety net and financial security during emergencies or unexpected expenses. Savings allow individuals to cover unforeseen costs without resorting to high-interest debt or depleting other assets.

Achieving Financial Goals: Whether saving for a down payment on a home, funding education expenses, building a retirement nest egg, or pursuing other financial goals, saving and investing provide the means to achieve these objectives systematically.

Inflation Protection: Investing in assets that outpace inflation helps protect the purchasing power of savings over time. By investing in fast-growing assets, you can preserve and potentially increase the value of your wealth over the long term.

Strategies for Saving and Investing

Establishing Savings Goals: Determine short-term and long-term savings goals, such as creating an emergency fund, saving for a vacation, or building retirement savings. Setting specific, measurable, achievable, relevant, and time-bound (SMART) goals provides clarity and motivation.

Choosing Appropriate Savings Vehicles: Explore different savings vehicles, such as savings accounts, fixed deposits, money market accounts, and high-yield savings accounts, to find options that offer competitive interest rates, liquidity, and security.

Understanding Investment Basics: Educate yourself on investment basics, including asset classes (e.g., stocks, bonds, mutual funds, ETFs), investment risk and return, diversification, asset allocation, and investment strategies. Understand how different investments work and their potential benefits and risks.

Assessing Risk Tolerance: Determine your risk tolerance, or your willingness and ability to withstand fluctuations in investment values. Consider factors such as investment time horizon, financial goals, income stability, and personal comfort level with market volatility when determining your risk tolerance.

Diversification: Spread risk and minimise exposure to any single investment by diversifying your portfolio across different asset classes, industries, sectors, and geographic regions. Diversification can help enhance portfolio stability and reduce the impact of market fluctuations on overall returns.

Saving and investing are essential components of financial literacy. They provide individuals with the tools and resources to build wealth, achieve financial goals, and secure their future. You can make informed decisions and maximise your financial potential by developing a solid understanding of saving and investing principles.

FINANCIAL PRODUCTS AND SERVICES

Financial products and services play a crucial role in your financial life by providing the tools and resources to manage your money, protect against risks, and achieve your financial goals. Financial literacy is essential for understanding the diverse array of products and services the financial industry offers and making informed decisions about their use.

Importance of Understanding Financial Products and Services

Informed Decision-Making: Financial literacy empowers you to make informed decisions about selecting and using financial products and services that align with your needs, preferences, and financial goals. Understanding different products’ features, terms, and costs helps you choose options that offer the best value and fit for your circumstances.

Risk Management: Financial products such as insurance help individuals mitigate financial risks by providing protection against unforeseen events such as accidents, illnesses, property damage, or loss of income. Understanding insurance coverage options and terms enables you to select appropriate policies that provide adequate protection without unnecessary costs.

Wealth Accumulation: Investment products such as stocks, bonds, mutual funds, and retirement accounts offer opportunities for wealth accumulation and long-term growth. Financial literacy lets you understand investment basics, assess risk and return characteristics, and build diversified investment portfolios tailored to your risk tolerance and financial objectives.

Credit Management: Credit products such as loans and overdrafts provide access to funds for various purposes, including purchasing goods and services, financing education, or covering emergency expenses. Financial literacy helps you understand how credit works, compare loans and other credit terms, manage debt responsibly, and build and maintain good credit scores.

Strategies for Understanding Financial Products and Services

Education and Research: Take the time to educate yourself about different financial products and services available in the market. Utilise resources such as financial websites, books, articles, and educational materials from reputable sources to learn about various products, their features, benefits, and potential drawbacks.

Comparison Shopping: Compare the features, terms, and costs of different financial products and services before deciding. Consider factors such as interest rates, fees, repayment terms, insurance coverage limits, investment performance, and customer reviews to evaluate options and identify the most suitable ones for your needs.

Seek Professional Advice: You should consider seeking advice from financial professionals, such as financial advisors, bankers, insurance agents, or investment brokers when evaluating complex financial products or making significant financial decisions. A trusted advisor can provide personalised guidance, recommendations, and insights based on your circumstances and goals.

Read and Understand Terms and Conditions: Before applying for or purchasing a financial product or service, carefully read and understand the terms and conditions, including contract terms, fees, penalties, exclusions, and limitations. Pay attention to the fine print and seek clarification from the provider if you have any questions or concerns.

Understanding financial products and services is essential for making sound financial decisions and achieving financial well-being. By enhancing financial literacy and staying informed about available options, individuals can effectively navigate the financial marketplace and make choices that support their financial goals and priorities. The financial world offers a plethora of products, such as loans, overdrafts, insurance, and investments. Financial literacy empowers you to understand these products, compare their features, and choose what best suits your needs.

FINANCIAL PLANNING

Financial planning is the systematic process of managing finances effectively, setting achievable goals, and developing strategies to attain those objectives. It encompasses various aspects of personal finance, including budgeting, saving, investing, debt management, insurance planning, tax planning, and retirement planning. Financial literacy is instrumental in facilitating financial planning by providing you with the knowledge and skills to make informed financial decisions.

The Significance of Financial Planning

Goal Setting: Financial planning helps you identify your financial goals, whether short-term, medium-term, or long-term, and prioritise them based on their importance and feasibility. Common financial goals include saving for emergencies, buying a home, funding education, planning retirement, or achieving financial independence.

Resource Allocation: Financial planning involves allocating financial resources, such as income and assets, towards various expenses, savings goals, debt repayment, and investment opportunities. It helps you optimise your resource allocation to maximise savings, investment returns, and overall financial well-being.

Risk Management: Financial planning includes assessing and managing financial risks, such as income volatility, market fluctuations, health emergencies, disability, or premature death. It involves evaluating insurance options, establishing emergency funds, and implementing risk mitigation strategies to protect against unforeseen events.

Wealth Accumulation: Financial planning aims to build and grow wealth over time by setting aside savings, investing in assets that generate returns, and leveraging tax-efficient strategies to minimise taxes and maximise investment growth. It helps individuals achieve financial security and achieve their desired lifestyle.

Role of Financial Literacy in Financial Planning

Assessing Financial Situation: Financial literacy enables you to assess your current financial situation accurately by understanding your income, expenses, assets, liabilities, cash flow, and net worth. It provides the foundation for setting realistic financial goals and developing appropriate strategies.

Setting Realistic Goals: Financial literacy helps you set realistic and achievable financial goals by understanding your financial capabilities, preferences, and constraints. It encourages setting SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals that are meaningful and attainable.

Understanding Financial Products: Financial literacy equips you with the knowledge to evaluate and select appropriate financial products and services that align with your goals and risk tolerance. It enables you to make informed decisions about savings accounts, investment options, insurance policies, and retirement plans.

Creating a Financial Plan: Financial literacy empowers you to develop comprehensive financial plans that address your short-term and long-term financial goals, considering factors such as income, expenses, savings, investments, debt, insurance, taxes, and estate planning.

Financial planning is essential for achieving financial security and realising financial goals. By integrating financial literacy into the planning process, you can make informed decisions, adapt to changing circumstances, and work towards a more secure financial future. This is the big picture.

 

WHY FINANCIAL LITERACY MATTERS

Financial literacy is pivotal in various aspects of personal finance, offering numerous benefits that contribute to your overall financial well-being.

Reduced Financial Stress: Financial literacy provides you with the knowledge and tools necessary to manage your finances effectively, leading to reduced financial stress and anxiety. By understanding how to budget, save, invest, and manage debt, you gain confidence in your ability to navigate financial challenges and uncertainties.

Informed Decision-Making: Financial literacy empowers you to make informed decisions across various aspects of personal finance, from budgeting to investment strategies. Armed with knowledge about financial products, services, and concepts, you can assess their options critically and choose the most suitable courses of action.

Achieving Financial Goals: Financial literacy enables individuals to set realistic financial goals and develop a roadmap. You can make steady progress towards achieving financial milestones by understanding your financial situation, identifying priorities, and implementing strategies aligned with your goals.

Financial Security: Financial literacy is instrumental in building a secure financial future. It equips you with the knowledge and skills necessary to weather financial storms, plan for emergencies, and invest for long-term financial well-being, enhancing overall financial security.

Debt Avoidance: Understanding the true cost of debt and responsible borrowing practices helps you avoid falling into the trap of high-interest debt. Financial literacy enables you to assess the risks and benefits of borrowing, make informed decisions about taking on debt, and adopt strategies to manage debt effectively.

BREAKING DOWN BARRIERS TO FINANCIAL LITERACY

The importance of financial literacy cannot be overstated, yet many individuals have a significant gap in financial knowledge. Several barriers contribute to this gap, making it challenging for people to access and understand essential financial concepts.

Lack of Financial Education: Formal education systems often lack a comprehensive financial literacy curriculum, leaving many individuals ill-equipped to navigate complex financial matters.

Financial Jargon: The financial industry is rife with jargon and technical terminology, which can be intimidating and inaccessible for those without a strong foundation in finance.

Socioeconomic Factors: Low-income communities often face barriers to accessing financial education and resources, exacerbating disparities in financial literacy.

BUILDING A FINANCIALLY LITERATE FUTURE

Building a financially literate future requires concerted efforts to address the existing gap in financial knowledge and empower individuals with the skills and resources they need to make informed financial decisions. Some solutions can be proposed.

Integrate Financial Education into Schools

Equipping young people with financial knowledge early on is essential for laying a strong foundation for their financial well-being. By integrating financial education into school curricula at all levels, from elementary to high school, students can learn key concepts such as budgeting, saving, investing, debt management, and basic economic principles.

This would bring out key benefits such as:

• Provision of universal access to financial education for all students, regardless of socioeconomic background.
• Fostering responsible financial behaviour from a young age, setting students up for long-term financial success.
• Helping students develop critical thinking skills and the ability to evaluate financial choices.

 

Develop Engaging Financial Literacy Programs

Creating engaging and interactive financial literacy programs is essential for making financial education accessible and enjoyable for learners of all ages. It is one of the main objectives of the Africa School of Entrepreneurship (ASoE), established in 2017. It remains a top objective for ASoE because these programs can include workshops, seminars, online courses, mobile apps, games, and other digital resources that cater to diverse learning styles and preferences.

This will, in effect:

• Increase engagement and retention of financial concepts through interactive and experiential learning experiences.
• Allow learners to access resources anytime, anywhere, using various devices.
• Address the challenge of financial jargon by breaking down complex concepts into digestible and relatable content.

Promote Financial Wellness Programs in the Workplace

Employers can play a pivotal role in promoting financial literacy among their employees by offering workplace-based financial wellness programs. These programs may include financial seminars, one-on-one counselling sessions, retirement planning workshops, and access to financial planning tools and resources.

These initiatives would:

• Enhance employee satisfaction, morale, and productivity by reducing financial stress and increasing financial confidence.
• Help attract and retain talent by offering valuable benefits that contribute to employees’ overall well-being.
• Contribute to a positive organisational culture that values employee development and financial wellness.

 

Organise Community Outreach Programs

Targeted community outreach programs are essential for reaching underserved populations and addressing disparities in financial literacy. These programs may involve partnerships with community organisations, local governments, and financial institutions to provide educational workshops, counselling services, and resources tailored to the community’s specific needs.

This would:

• Address barriers to financial literacy, such as limited access to resources and cultural or language barriers.
• Build trust and rapport within the community, fostering long-term relationships and ongoing support.
• Empower individuals and families to improve their financial well-being and achieve their financial goals.

NEXT STEPS

By implementing a combination of these solutions, we can bridge the gap in financial literacy and empower individuals of all ages and backgrounds to make informed financial decisions, build financial resilience, and achieve their long-term financial goals.

Promoting financial literacy is a collective effort that requires collaboration among policymakers, educators, employers, community leaders, and financial institutions to create a more financially literate society.

Financial literacy is the bedrock of financial empowerment and resilience. It is not a luxury but a fundamental skill that every individual deserves to possess. By investing in financial education, breaking down barriers to access, and fostering a culture of financial responsibility, we can create a more financially literate society where individuals can navigate financial challenges, seize opportunities, and achieve their financial aspirations.

Ultimately, promoting financial literacy is not just about improving individual outcomes but about building a stronger, more prosperous future for all. As we continue to advance efforts in this domain, let us remain committed to the vision of a world where financial literacy is universal, enabling ALL OF US to realise our full financial potential and secure brighter futures for ourselves and future generations.

I hope you found this article enjoyable. Your feedback is highly valued and appreciated. I welcome your suggestions for topics you want me to address or provide insights on. You can schedule a meeting with me at your convenience through my Calendly at calendly.com/maxwellampong. Alternatively, you may connect with me through various channels on my Linktree page at https://linktr.ee/themax.

This article is written for informational purposes only and is not intended as financial advice. The views and opinions expressed in this article are my own and do not necessarily reflect the official policy or position of any other agency, organisation, employer, or company. Assumptions made in the analysis within this article do not reflect the position of any entity other than mine.

Before making any financial decisions, consult with a qualified professional who can provide personalised advice and guidance based on your specific situation.

If you’re interested in exploring this subject matter more thoroughly, I’ve compiled a list of reading materials and references that provide greater detail and focus on particular areas.

• Kaplan, S. E., & Ketcham, R. N. (2013). Survey of personal financial literacy among college students. Journal of Financial Education, 39(1/2), 1-25.
• Drennan, L. T. (2003). Budgeting and beyond: A comprehensive analysis of the structure, measurement, and use of household expenditure data. Bureau of Labor Statistics.
• Bernheim, B. D., Garrett, D. M., & Maki, D. M. (2001). Education and saving: The long-term effects of high school financial curriculum mandates. Journal of Public Economics, 88(7-8), 1825-1847.
• Kaplan, S. E., & Ketcham, R. N. (2013). Survey of personal financial literacy among college students. Journal of Financial Education, 39(1/2), 1-25.
• Lusardi, A., & Mitchell, O. S. (2011). Financial literacy: Implications for retirement security and the financial marketplace. Oxford University Press.
• Campbell, J. Y. (2006). Household finance. The Journal of Finance, 61(4), 1553-1604.
• Mandell, L. (2008). The financial literacy of young American adults. National Bureau of Economic Research.
• Collins, J. M. (2012). Financial literacy and household wealth accumulation: Evidence from the survey of consumer finances. Federal Reserve Bulletin, 98(2), 1-18.
• Lusardi, A., & Mitchell, O. S. (2008). Planning and financial literacy: How do women fare? American Economic Review, 98(2), 413-417.
• Campbell, J. Y. (2006). Household finance. The Journal of Finance, 61(4), 1553-1604.
• Huston, S. J. (2010). Measuring financial literacy. The Journal of Consumer Affairs, 44(2), 296-316.
• Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5-44.
• Lusardi, A., & Mitchell, O. S. (2008). Planning and financial literacy: How do women fare? American Economic Review, 98(2), 413-417.
• Hastings, J. S., & Mitchell, O. S. (2011). How financial literacy and impatience shape retirement wealth and investment behaviours. National Bureau of Economic Research.
• Mandell, L. (2008). The financial literacy of young American adults. National Bureau of Economic Research.
• Bernheim, B. D., Garrett, D. M., & Maki, D. M. (2001). Education and saving: The long-term effects of high school financial curriculum mandates. Journal of Public Economics, 88(7-8), 1825-1847.
• Lusardi, A., & Mitchell, O. S. (2011). Financial literacy: Implications for retirement security and the financial marketplace. Oxford University Press.
• Robb, C. A., & Sharpe, D. L. (2009). Effect of personal financial knowledge on college students’ credit card behavior. Journal of Financial Counseling and Planning, 20(1), 25-43.
• Lusardi, A., & Tufano, P. (2009). Debt literacy, financial experiences, and overindebtedness. Journal of Pension Economics and Finance, 8(02), 145-174.
• Robb, C. A., & Woodyard, A. S. (2011). Financial knowledge and best practice behavior. Journal of Financial Counseling and Planning, 22(1), 60-70.
• Hastings, J. S., & Mitchell, O. S. (2011). How financial literacy and impatience shape retirement wealth and investment behaviors. National Bureau of Economic Research.
• Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5-44.
• Bernheim, B. D., Garrett, D. M., & Maki, D. M. (2001). Education and saving: The long-term effects of high school financial curriculum mandates. Journal of Public Economics, 88(7-8), 1825-1847.
• Kapteyn, A., Lusardi, A., & Alessie, R. (2005). Explaining the wealth holdings of different cohorts: Productivity growth and social security. European Economic Review, 49(5), 1361-1391.
• Mandell, L. (2008). The financial literacy of young American adults. National Bureau of Economic Research.
• Collins, J. M. (2012). Financial literacy and household wealth accumulation: Evidence from the survey of consumer finances. Federal Reserve Bulletin, 98(2), 1-18.
• Huston, S. J. (2010). Measuring financial literacy. The Journal of Consumer Affairs, 44(2), 296-316.
• Collins, J. M., & Urban, C. (2015). The role of financial education in the reduction of consumer debt delinquencies. Journal of Financial Counseling and Planning, 26(1), 3-14.
• Hastings, J. S., & Mitchell, O. S. (2011). How financial literacy and impatience shape retirement wealth and investment behaviors. National Bureau of Economic Research.
• Mandell, L. (2008). The financial literacy of young American adults. National Bureau of Economic Research.
• Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5-44.
• Lusardi, A., & Tufano, P. (2009). Debt literacy, financial experiences, and overindebtedness. Journal of Pension Economics and Finance, 8(02), 145-174.

 

I wish you a highly productive and successful week ahead!

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Dr Maxwell Ampong is the CEO of Maxwell Investments Group. He is an Honorary Curator at the Ghana National Museum and the Official Business Advisor with the General Agricultural Workers’ Union of Ghana (GAWU) under Ghana’s Trade Union Congress (TUC). He writes on relevant economic topics and general perspective pieces.

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