ECONOMIES that need to achieve sustainable and inclusive economic development should ensure efforts that promote national growth and reduce poverty are well placed to gain the desired results.
Financial literacy is one such component that is vital to engage the youths in the process of economic development.
Poor financial choices are often made as a result of a lack of understanding as regards financial matters.
Financial literacy and consumer education make the financial market effective, efficient and it better equips consumers to make smart financial decisions.
Over the past decade there has been increasing recognition of the importance of financial education in both developed and emerging economies.
Financial literacy can influence attitudes and behaviours towards money management for students well after they have graduated.
Globally, efforts aimed at improving the understanding of financial matters are continually being exerted.
One common development has been the introduction of a coherent strategy that brings about concerted and coordinated efforts among contributors in the field of financial education.
The Bank of Zambia (BoZ) launched the coin-a-thon competition aimed at promoting the culture of saving among young citizens in the country.
Then BoZ governor Michael Gondwe said the competition was a positive venture in that it will help bring the much needed coins in circulation.
Dr Gondwe said the challenge would also assist in mopping up the dormant coins back to the banks at the end of it.
The coin-a-thon competition which was launched yesterday was expected to end during the Financial Literacy week in March 2015.
Gaining the knowledge and developing the skills to become financially literate is a lifelong process that begins with something as simple as putting a few pennies in a piggy bank, and evolves to more advanced subjects such as risk and asset allocation.
“We note that a lot of us have been throwing away coins everywhere, in our cars, house, office drawers and many others, this competition will assist in mopping up the dormant coins back to the banks at the end of it,” he said.
The BoZ would continue to educate the public on the various opportunities and benefits in using coins.
The coin-a-thon competition was dedicated to encourage pupils and students to save money through their respective schools.
The Financial Sector Development plan (FSDP) secretariat, based at BoZ will distribute piggy banks to schools as a means of promoting savings among pupils in order to help their respective schools finance projects they wanted to realise.
The importance of financial literacy among children is cardinal as a person with a good level of financial literacy is likely to be better poised than someone who does not have the knowledge to manage financial affairs in a prudent manner.
Improving financial decision making, teaching students economic principles will help them as citizens understand and make choices about factors affecting the nation.
The Ministry of Education, Science, Vocational Training and Early Education acknowledged the importance of inculcating the culture of saving among pupils.
Education Permanent Secretary Chishimba Nkosha said Government was working with the FSDP secretariat to incorporate personal finance management skills in the school curriculum.
Mr Nkosha said with financial education incorporated in more depth in the school curriculum, it was the Ministry’s expectation that Zambia would achieve the vision of becoming a prosperous middle income nation by the year 2030.
“While young people have been recognised as a priority target for financial education, I wish to reiterate that financial literacy is relevant to all segments of our population. Planning to achieve financial goals should be a lifetime endeavour,” he said.
Incorporating financial education in the school curriculum will help impact financial understanding and skills in young people even as they enter the job market either as entrepreneurs, public servants or workers in the private sector.
It is important that young citizens are taught financial education at an early age in order to inculcate in them a culture of prudent utilisation of finances.
This will in turn help the country have a cadre of citizens who are able to prudently use funds at both personal and national levels.
When young people who form the majority of the population are given the right skills, knowledge, values and competencies to start businesses for themselves, the country will have a success situation in terms of job creation.
Financial literacy in schools will help impact financial understanding and skills in young people even as they enter the job market either as entrepreneurs, public servants or workers in the private sector.
Improving education and promoting financial literacy among the youths is vital for all African economies.
Government will continue forging partnerships with the private sector to achieve financial literacy for school going children.
While financial literacy has always been important, the need for financial education has assumed greater urgency in Zambia today, as an ever range of financial services are being marketed across the country.
The financial security of each child is no longer a privilege of a few but a right for every Zambian child.
It is important that as young people leave school and enter the job market, they are already financially literate as leaving this too late could lead to them making wrong financial decisions.