As part of this year’s financial literacy month, the Executive Director for the Centre for Financial Literacy Education Africa, Peter Kwadwo Asare Nyarko, and his team of volunteers engaged a section of traders at Tudu Market in Accra’s Central Business District on effective financial management.
Held on Friday, April 19, 2024, the CFLEA team educated the businessmen and women on managing finances, ensuring financial independence post-retirement, and acquiring loans for business growth and expansion.
In the calendar of the organisation, every April each year is designated as Financial Literacy Month, where the organisation holds several public campaigns and outreaches on financial literacy across the country.
Mr. Nyarko reported that CFLE Africa had previously visited the Takoradi Market, Koforidua Market Centre, Sunyani Market, Madina Market, and Mallam Market as part of their financial literacy market campaigns.
He explained to The Sikaman Times why the Centre decided to keep giving this education to the market space operators.
He observed during his engagement with the market that most of them aren’t saving at the banks because they have lost confidence in the banking system of the country.
Others, according to him, did not secure their financial future as they believed that as long as they could work, earn income, and support their families, everything would be fine.
He emphasised the need for him and his team to guide the traders in addressing their inconsistencies.
Mr. Nyarko revealed that he had personally counselled them to consider their future and make retirement plans while educating them on some of the steps to take to help save them from being a burden on their families.
He suggested that parents should educate their children to ensure they maintain good standing in order for their wards to reciprocate their investments upon completion of school and becoming financially stable.
“They need to think about the future, they need to plan for their retirements, and they need to educate their children so their children will be in a better position to stand. If your child is in that position when you are old, they can be able to take care of you because we realised most of their children are their investments,” he explained.
Mr. Nyarko stated that another way they can manage their finances now is to ensure their businesses have a helping hand when they run into trouble, including theft and fire outbreaks.
He also advised them on insuring their lives, as they may have dependents, and assured them that insurance companies would duly pay their claims once they provided the necessary documents.
“We also shared with them some insurance strategies they can use. You can insure your business, and so if something happens to your business, the insurance companies can come in and then settle you. You can also insure your life because people are depending on you, and so if you fall sick and become incapacitated, someone should come in and take care of that situation.”
Most marketers revealed that they avoid insuring their businesses due to cumbersome claim processes. However, Mr. Nyarko explained that this is often due to a lack of education and understanding of insurance terms and conditions. According to him, defaulting on insurance premium contributions can lead to missed claims, potentially affecting the business in the long run. Therefore, proper education is crucial for successful claim processing.
Mr. Nyarko suggested that they either ensure to understand the terms well by reading widely or give the forms to trusted relatives to help assist them.
“Yes, just like you said, some of them came out with this issue, but then what we told them was that sometimes when you are buying an insurance package, there are terms and conditions. You will fill out a form, but one thing is for sure: most of the marketers don’t go through the forms, so they don’t know the terms and conditions. If you even default on one payment, you may not have your sum assured, and so they need to understand the terms and conditions; they need to read it, and if they cannot read it themselves, they need to go with someone who can do so,” he added.
The Sikaman Times interacted with some traders during the market engagement. Auntie Naa, a footwear dealer, revealed she holds a mixture of banking and insurance products, including the traditional “susu” scheme, which has generally given her some financial relief. She, however, indicated she doesn’t keep proper records of her trading activities as she relies on her many years of experience in business.
Conversely, Gladys Opoku, another footwear dealer, stated that she captures her daily sales returns and saves with a local “susu” company. He expressed her reservation about doing insurance because she was of the opinion that insurance companies do not provide the needed support when one is financially constrained. She disclosed her preference for saving and investing with a bank as opposed to buying an insurance product. Gladys noted that she does not have a budget for sales but relies on the grace of God, as daily sales are not predictable. She added that she does not consider loans for her business but ploughs back accumulated savings when she needs to scale up.
Lovina, a kitchenware dealer, has not accessed her over-five-year-old insurance policy, although she still pays premiums. Additionally, she stated that she saves with a bank but does proper bookkeeping of her daily activities.
Nonetheless, the traders who were appreciative of CFLE Africa for reaching out expressed their willingness to stick to their advice.
Representatives of the event partners, Prudential Life Insurance Ghana, Axis Pensions Trust, and SG Bank Ghana, were on hand to educate the traders, understand their concerns, and sell their products to them.
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