Govt must adopt financial literacy in educational curriculum - AFLO

The Alliance of Financial Literacy Organisation (AFLO) on Tuesday called on the government to inculcate financial literacy into the educational curriculum to prepare students on how best to manage their financial lives.

The Alliance said the initiative would help them to better understand financial issues from the basics and make an informed decision.

Ms Sedinam A. Ameku, the AFLO President, made the call at a press briefing on the theme: "Revamp Financial Literacy Agenda in Ghana," and explained that financial education enabled an individual to know the basics of budgeting.

She noted that an understanding of interest rates, prioritizing savings and investment, and identifying financial theft issues and safety were key for the economic development of businesses.

Ms Ameku said when sound and informed financial decisions were made, it improved the desire and capacity of an individual to take charge of his or her financial life.

"Financial literacy has a positive impact on the micro and macroeconomic development of an economy, and government must prioritise its education for an inclusive understanding of fiscal policy issues," she said.

Ms Ameku posited that when citizens were financially literate, they understood their financial obligations to the nation better by paying taxes and making mandatory Social Security and National Insurance Trust contributions.

She said the Standards and Poor's Financial Literacy Survey in 2018 had established that only 36 per cent of adults were financial literate, however, in Ghana lack of financial knowledge had dragged many Ghanaians into financial misery and if care was not taken, it would affect the next generation.

AFLO had presented a petition to the Ministry of Finance for consideration to declare a statutory financial literacy month and the mandatory observation of the month, she said.

This would create the needed awareness about financial literacy in the country.

Mr Joshua Mensah, the AFLO Vice President, said the country used to observe a financial literacy day in the past but that had stopped since 2016.

He said financial literacy would broaden the understanding of many Ghanaians in the financial space and reduce bad savings and investments.