Veep launches maiden National Financial Literacy Week

Accra, Sept. 22, GNA- A national survey on financial literacy, has revealed that a number of Ghanaians do not have correct information on what they need for successful financial planning. The 43 per cent respondents had no information they need to plan for their personal finances, but exhibited strong knowledge of savings, profit and personal budget. Vice President Alhaji Aliu Mahama made this known during the launch of the countries maiden "Financial Literacy Week", on the theme: "Financial Literacy...Knowledge Is Money."

The week, which is also a novelty in Africa, is the brainchild of the Ministry of Finance and Economic Planning and would span September 22 to 28. The week is in line with recommendations in Ghana's Financial Sector

Strategic Plan, which recognises the need to improve the financial literacy of Ghanaians in order to accelerate the deepening of the economy. The literacy programme is expected to raise public awareness and

enhance understanding of the range of products and services being offered by financial institutions.

Alhaji Mahama stressed: "There is a large section of our people who know very little about investing about mutual funds, about private pension and about compound interest."

He challenged media organisations to partner the financial sector to provide financial literacy to the citizenry. "I will go further to suggest that financial literacy should be taught in our schools starting from the basic schools."

Alhaji Mahama expressed astonishment that some shrewd people in

society had allowed themselves to be influenced to part with their hard-earned money, through various financial scams such as 'Pyram', 'R5' and '419'.

He said financial literacy would encourage individuals and families to use their money prudently. Alhaji Mahama observed that in the more developed countries experience had shown that financial literacy in a person's early life leads to financial independence and sound investment decisions. Dr. Anthony Akoto Osei, Minister of State in-charge of Finance and Economic Planning said studies had shown that the youth between 18 and 30 years tend to know more about soccer players in the English premier league than about financial issues. Dr. Osei said the awareness week would help Ghanaians to reach their personal and financial goals and deepen their confidence in all business transactions. He said most often people acquired financial literacy through trial and

error.

Dr. Nii Sowah, Director-General of the Securities and Exchange Commission noted that only 10 per cent of Ghanaians have bank accounts aside of the rural banks, hence the need for financial literacy to reverse the situation.

Ms. Josephine Amoah, Commissioner of the National Insurance Commissioner expressed the need to educate Ghanaians to know the essence of insurance to take advantage of the numerous products that come with it.