Include financial literacy in our school syllabus

With the pervasive media coverage of Uganda’s financial turmoil, our children may have questions about what is going on in our economy. Many adults have a difficult time understanding—much less explaining in an age-appropriate way to a child—what is going on in our government and in our financial markets.

We must be able to articulate the value of financial literacy as parents as we put forward concerns for our children’s future. The ability to make informed judgments and to take effective actions regarding the current and future use and management of money is what our children need to see and understand now.

They must appreciate the financial choices available, planning for tomorrow, spending wisely and be ready for life challenges such as loss of a guardian, failure to secure formal employment or even securing government scholarship at the university.

Financial literacy is an issue that transcends political, geographical and social economic barriers. Local and global economies are sustained by the combined financial contributions of average people – but these individuals do not exist in a vacuum. There must be a will and action. Uganda can, and must do a better job of educating our children about effective money management, not only to avoid the financial pitfalls into which so many adults have fallen, but because our children have a right to know what is happening in their country and affecting their lives but also the fact that some day they will run our businesses, our government and our financial institutions. Financial literacy relating to investments or wealth building and sustainability is vital for young adults.

How can young people get the financial knowledge that they so desperately need? Non-state actors, including parents, must embrace the challenge and start helping the young generation to understand basic finance and also teach them the necessary skills to manage financial resources effectively for a lifetime of financial well-being. In fact, it is long overdue to include it in the school syllabus to enable children appreciate the degree of importance of financial management – including personal resources at an early age. Results will be of interest to policy makers concerned with financial well-being of all nationals and will create a positive correlation between personal and institutional responsibility.

There is lack of consistency in the education systems in requiring our children to study and practice personal finance management. School systems have the greatest access to young people and I cannot stress it more that it makes more sense to provide financial education along with other core subjects yet few reforms have been made in the curricula nationwide. Parents too should take off time to equip themselves with financial knowledge so as to confidently discuss financial basics with their children. Education with a focus on our youth is an important defence to improve the long-term health of our economy and the best offence that can be committed to ensure a higher standard of living, a sense of responsibility and a sustainable quality of life for future generations.

Fortunately, there are organisations that are taking the lead and perfecting new methodologies of introducing and inculcating financial literacy in the next generation of consumers by educating them on how to effectively manage resources starting with their little pocket money. Such organisations should not be left on their own when answering such a noble call.

Junior Achievement is one such organisation that is working closely with the business and education communities to deliver age-appropriate programmes that offer young people hands-on experiences in financial literacy. I encourage the business community, government, schools and whoever has a responsibility of taking care and developing a young Ugandan to join efforts with this tried and proved methodology to ensure a financially literate and robust economy.

Dr Aliker is the Board Chairman, Junior Achievement Uganda
www.jauganda.org