“He who knows not and knows he knows not, is simple; teach him” – Arabic proverb

The road to financial achievement can be a difficult journey for many persons. The passage to monetary success is frequently encumbered by deep potholes and unexpected speed bumps. In fact, most people end up never attaining their goals, as they detoured from the straight and narrow path of making smart financial choices.

Over the years, I have realised that the number one reason that most people falter on the route to financial freedom is that they aren’t aware of what it takes to be successful with money. Thanks to improved access to communication sources and lessons learnt from the recent financial fallouts, more persons have become concerned about their lack of knowledge on financial matters, and are desperately seeking answers to their problems.

Unfortunately, the financial training required to obtain the basic information about money management is still not readily available to the average Jamaican consumer. Despite the best efforts of a few dedicated persons and entities to spread the good news about personal finance, only a national effort to educate the entire population will achieve the desired result.

The importance of financial literacy

Recently, the Financial Services Commission (FSC), in association with the Caribbean Regional Technical Assistance Centre (CARTAC), hosted a forum for stakeholders involved in financial education to inform them of the work currently being carried out towards developing a national financial literacy programme in Jamaica.

Nadene Newsome, FSC Communications Manager, explained that a national financial literacy programme (NFLP) is a coordinated mechanism which is designed to impart financial education to the general populace of a country. Jamaica is now preparing to join over 60 countries around the world that have established NFLPs including Trinidad and Tobago, the USA and Canada.

Newsome revealed that emerging socio-economic trends such as the increasing shift in responsibility for meeting personal financial needs from the State to individuals, along with an aging population that is generally spending more and saving less, could have serious implications for the country’s future sustainable economic growth and development.

In addition to these developments, Newsome pointed out that there has been an overwhelming response from Jamaicans to several public education events dealing with financial issues, which confirmed that there is a growing demand by persons for relevant information to help them properly manage their financial affairs.

Financial education brings transformation

Newsome noted that these factors have prompted the FSC to spearhead the development of a comprehensive education programme that can “equip consumers with the knowledge required to make sound financial decisions, plan for the future, evade fraud and exercise their consumer protection rights.”

The key purpose of this programme is to “bring about behaviour modification and attitude change by providing empowering knowledge.” This transformation would be accomplished through a communication programme, Newsome continued, that imparts practical information on proper money management practices regarding earning, spending, saving, borrowing money, and choosing appropriate financial products.

The desired result of this education programme is that consumers would be able to demonstrate healthy financial habits such as paying bills on time, managing debt, preparing for future needs such as retirement, and understanding how to achieve their financial goals through spending, saving and investing wisely.

Developing a unified approach

Newsome indicated that although financial advice programmes are currently being carried out in Jamaica, some of these may promote a particular product or company, and there may be uncertainty surrounding the quality of information provided. Many consumers, she added, particularly those in lower-income groups, may also find it difficult to access proper advice.

The proposed Jamaican NFLP will address these concerns by delivering impartial and objective financial information. By being comprehensive and countrywide, Newsome explained, the programme will be able to bring together international experience and local stakeholders to supply quality financial information and reach out to all segments of the population.

Consistent with international best practices, it will aim to provide financial education to students from primary to tertiary levels. It will also provide information to other target groups such as small business owners, employees and persons at or near retirement age. Topics to be covered include budgeting, debt management, insurance, detecting fraud and building wealth by investing.

The national programme will ensure that the financial education initiatives are centrally coordinated; that measurable objectives are established, tracked and met; and that all the needs of the population are thoroughly addressed, Newsome affirmed. She appealed for support from the relevant arms of government, private sector and non-governmental organisations for this effort.

As a provider of financial education services, I’m excited about the advent of a national effort to bring critical information about money matters to all sectors of the Jamaican society. I know from personal experience, and from the transformed lives of many clients and readers, that financial literacy is the key to achieving financial success.

Cherryl is a financial consultant and money coach, and founder of Financially S.M.A.R.T. Services; she is currently writing her first book, “The 3 Ms of Money.” Get more practical financial advice at www.financiallysmartadvice.com and free financial tools at www.financiallysmartonline.com. Please email comments to cherryl@financiallysmartonline.com