Category Archives: Financial Literacy

Financial Mistakes

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“Success does not consist in never making mistakes, but in never making the same one a second time.” — George Bernard Shaw

UNLIKE most school systems, life doesn’t give you homework and examinations to determine how well you have learned the skills you need to succeed. In the real world, you can often gauge your progress in accomplishing your goals by the type of results that you are currently experiencing.

When it comes to money, there are many mistakes that can prevent you from enjoying the financial life that you desire. If you keep making the wrong choices, you will only continue to feel frustrated with the state of your finances. Let’s look at some of the common missteps that can derail your financial security. Continue reading Financial Mistakes →

Money Musings: The Power of Teamwork

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The FIFA 2014 World Cup is in full swing and millions of people across the world are being entertained by the excellent football matches being played. I enjoy watching competitive sport, and have been fascinated by the dominance of smaller football nations over their more established counterparts.

The brilliance of star strikers from teams such as Spain and Portugal has been dulled by the exploits of the not-so-favourite sides like Costa Rica and Chile. I observed that it was often very difficult for the top teams to get the better of a band of players who were performing together like a well-oiled machine.

As I marvelled at this showcase of sporting teamwork, I reflected that we all could benefit from the help of others when we are trying to accomplish our goals. Instead of attempting to advance solely by ourselves, it might be useful to get the assistance of a supportive team in order to achieve our objectives.

Just like a football squad which is made up of players with different responsibilities, you might need to assemble a group of friends and professionals who can help you in various ways to further your goals. Let’s look at some of the possible members who might comprise your personal finance team. Continue reading Money Musings: The Power of Teamwork →

Do You Have Financial A.D.D.?

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Recently, a client remarked that he thought he was suffering from financial ADD. Attention Deficit Disorder (ADD) is a medical condition that is normally associated with children and adults who exhibit inappropriate levels of impulsivity, inattention, lack of focus and sometimes hyperactivity.

His rationale for making this diagnosis was his track record of starting small enterprises upon a whim, with minimal success. He also reported that he usually became distracted by what appeared to be ‘hot’ new opportunities, at the expense of the business venture in which he was already involved.

While I initially laughed at his declaration, I reflected on the concept of financial ADD and realised that when it came to their money affairs, many people could really be suffering from symptoms similar to the real disorder. Let’s look at some ways in which financial ADD could be affecting your life. Continue reading Do You Have Financial A.D.D.? →

What do you need to learn about money?

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As children, we were taught that we needed to study the topics of reading, writing and arithmetic if we wanted to do well in school. Similarly, if you want to be financially successful, you have to make an effort to learn the essential principles of dealing with money.

Wikipedia.org defines financial literacy as the “set of skills and knowledge that allows an individual to make informed and effective decisions with all of their financial resources.” There are three keys to being financially smart — you have to know how to manage, multiply and maintain your money.

Get basic money skills
The important skill sets to learn in managing money are: how to budget to know the cost of your lifestyle and to prioritise your spending; how to develop the discipline of saving; how to manage useful debt and eliminate wasteful borrowing; and how to set and achieve your financial goals. Continue reading What do you need to learn about money? →

Six Ways to Learn About Money

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I regularly receive correspondence from readers asking me for advice on how to fix their money problems or accomplish some of their financial goals. While it’s possible to answer some questions in a few paragraphs, most queries would require an extended period of teaching to comprehensively address the issues of concern.

We live in an age of immediate gratification, and many people have become accustomed to getting fast solutions to their needs. Although today you can enjoy convenience foods, Google searches and instant messaging conversations, when you are looking for solutions to your money challenges, there really is no shortcut to success.

Take charge of your financial education
It took me many years of dedicated research and determined application to garner the wealth of knowledge about money that I am happy to share with you each week. I’m still learning new things all the time about what it takes to be successful with money, as there is always some lesson in life that can bring more insight and wisdom. Continue reading Six Ways to Learn About Money →

Money Mission: Increase Your Financial Knowledge

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One of the reasons why persons may find it difficult to achieve their money goals is that they lack the financial know-how necessary for success. They might be clear about what they want to achieve, and may be motivated to do what’s necessary to accomplish their objectives, but they are still hampered by uncertainty about the right way forward.

Although having insufficient information can negatively affect your self-confidence, it’s one of the easiest obstacles to overcome. We are living in the age of information, and there are myriad ways to gain detailed instructions on almost anything you need to do. Once you have a strong desire to learn, you can seek and find the answers to most of your questions.

As we continue to look at strategies which can help you to stay focused on your goals, this month’s money mission challenges you to get educated about financial matters. As 16th century philosopher Sir Francis Bacon declared, “Knowledge is power;” and learning the essential skills of money can empower and equip you to take charge of your financial future. Continue reading Money Mission: Increase Your Financial Knowledge →

Jamaican Money Resources

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Over the years, I have observed a steady increase in the number of Jamaicans who are trying to develop their money skills and find ways to improve their finances. There is a wealth of financial information available on the internet or in books and CDs; but very often the material has been developed for an overseas audience, so some of the details might not be relevant to our situation.

While basic money principles are the same regardless of the country of origin, there are certain financial issues that are unique to our culture that can only be adequately covered from a local viewpoint. It is therefore encouraging to see that some Jamaican authors have risen to the task of spreading financial literacy by sharing their knowledge and experiences about money.

Let’s look at some of the locally available books that aim to educate persons about personal finance and business matters. Continue reading Jamaican Money Resources →

Financial Education for all Jamaicans

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“He who knows not and knows he knows not, is simple; teach him” – Arabic proverb

The road to financial achievement can be a difficult journey for many persons. The passage to money success is frequently encumbered by deep potholes and unexpected speed bumps. In fact, most people never end up attaining their goals, as along the way they detoured from the straight and narrow path of making smart financial choices.

Over the years, I have realised that the number one reason that most people falter on the route to financial freedom is that they aren’t aware of what it takes to be successful with money.

Thanks to improved access to communication sources and lessons learnt from the recent financial fallouts, more persons have become concerned about their lack of knowledge about financial matters, and are desperately seeking answers to their problems. Continue reading Financial Education for all Jamaicans →

Developing Financial Literacy in Jamaica

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Over the past eight years, I have been actively involved in writing, training and coaching on topics relating to financial education. Through interaction with thousands of Jamaicans from all walks of life, I have realised that the number one problem that prevents most people from achieving their financial goals is their lack of understanding of basic money principles.

Financial literacy is defined as the ability of individuals to make appropriate money decisions by learning the principles that relate to the management, growth and preservation of their money. When people are educated about the appropriate actions to take with their money, then they are more likely to save towards their goals, manage their debt, purchase assets such as a home, and make positive contributions to the economic development of the country.

Anecdotal evidence points to an overwhelming demand from Jamaicans for practical information on or about basic financial strategies such as budgeting, debt control, investing options and retirement and estate planning.

Although some financial institutions have been offering public seminars to address some of these issues, their initiatives have been insufficient to meet the country’s requirements. Continue reading Developing Financial Literacy in Jamaica →

Financial Wellness in the Workplace

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“Employees with money problems are like sharks swimming around the workplace taking bites out of the bottom line.” – E Thomas Garman, Personal Finance Employee Education Foundation

Last week we looked at some poor money habits that can cause you to feel distressed about your finances. These practices include spending more than you earn, not saving for emergencies, depending on credit for consumer purchases, not planning for financial goals and taking unwise investing risks.

Research has shown that people with money problems usually end up being tense, worried and depressed. The Centre for Financial Social Work has stated that “money issues are the greatest stressor in peoples’ lives.” Financial distress can actually lead to insomnia, high blood pressure, migraines and other serious health concerns.

While it’s clear that people’s money challenges impair their personal lives, it may not be that obvious that these troubles can negatively impact the workplace. What happens when financially challenged people go to work? Do they leave their money worries at home? Continue reading Financial Wellness in the Workplace →