The need for financial education among Namibians has increased over the past couple of years, with a continued increase in the levels of non-performing loans from the recently published financial statements of two of the big banking groups in the country.
Although it appears to be often overlooked, from a primary, secondary, and even tertiary school levels.
Basic financial education has proven time and again to be imperative in improving the level of debt that is bound to become non-performing over time and the basic way that money is perceived, creating the potential for financial freedom.
A number of poor financial decisions can be attributed to young adults, for which, ironically, the population consists mainly of recent graduates who, to a reasonable extent, are expected to be financially literate.
However, we still find that they make decisions that contradict this expectation.
I have recently experienced this first-hand, when a friend of mine got his first job and was experiencing the feeling of receiving a large amount of money for the first time.
He seemed to have it all under control, until he reached out about a year later on how he realised that not having a plan for his money, and being able to afford debt, has led him to dig his own grave.
He could no longer afford to pay most of the debt he had taken out and the lifestyle he had adopted.
For a person to shift from not affording the debt they had taken out, to being able to afford the lifestyle they are looking into takes an understanding and practising of the basics of financial education.
It is worth noting that there is currently a limit on financial education within the borders of Namibia, with only a handful of sources readily available.
Information regarding financial education is widely available on the internet, however, it is not visible enough that it prompts individuals to look into it and apply it in their lives.
Sources of financial education allow people to expand beyond the basics of saving and venture into investment opportunities which contribute directly to the growth of the country’s economy.
Perhaps we can blame the recessive economic conditions for the non-performing loans, however, we cannot overlook the limited financial education as a direct contributor to a stunted growth of the economy. Either way, the exposure to financial education is one that requires focus for the betterment of the country’s financial education status.
*Justine Domingues is an aspiring CA(NAM) with a drive to make financial education widely available. She is the founder of Financial Zula, a Youtube channel that focuses on making financial education available. For more information, please check-out “Financial Zula” on Youtube.
