Money Management and Financial Skills 

As we discussed earlier, we now know that financial literacy is defined as the ability to understand and use various financial skills. These include being able to manage your money, carry out budgeting and make investments.

Frighteningly, figures from the World Bank suggest that only one in three people around the world are financially literate. The figures are far worse for women, poor people, and those with lower levels of education. What’s more, this is very much only a problem in developing countries: only 67% of Ghanaians are considered financially literate.

This is a problem. people who are not financially literate tend to incur higher charges for loans, and run up bigger debts. Meanwhile, people who are better at financial planning tend to have more savings for retirement, and are better able to manage investments and risk. This section aims to help you to acquire the essential skills needed to understand finance, and manage your money effectively.