EDITORIAL - Making wise financial decisions vital

Young Barbadians would be wise to get informed about money matters and start preparing for their financial future from now.

 

Too often we see stories in the media about people who have fallen on hard times, not as a result of unexpected illness or environmental disaster, but because of a failure to make wise 

financial decisions and plan their finances in advance. At the end of their stories is usually a cry for help from the Government or other members of the public to have pity on them and be compassionate enough to give them a hand-out or a hand-up.

 

Whether or not individuals assist in these cases is entirely up to them, however, as the old adage goes, it would be smarter in this case to “teach a man how to fish instead of giving him a fish”. Teach youngsters from early how to manage their money. 

 

Unfortunately, too many Black people are not money wise, and this could be considered a cultural characteristic. Throughout the years there has been very little saving, and when there is saving it is usually small sums. A report in the Times nearly a decade ago entitled "Why More Blacks Don’t Invest" revealed that most Blacks in the US focus more on saving – shying away from banks and opting for jars under the bed. Even if they did invest, they focused more on real estate or whole life insurance policies – a low return-investment.

 

Here in Barbados in 2016, the trust in financial institutions has improved to the point where personal savings are booming. However, too many people are still not familiar with the options available to them for increasing their wealth, namely investing. 

 

In your interest to invest

We need to foster a new attitude about money in this country. Money is more than a salary and a means to pay bills and make purchases. Money is a means to bettering one’s life. Make your money work for you. Just as you work for your employer and get paid, your money will reap rewards if you put it to work. These seeds of change need to be sowed amongst our younger population, which is mainly being taught the benefits saving.

 

To this end, the Central Bank of Barbados has hosted seminars in the past aimed at educating the public on the benefits of investing and how to get involved in the action on the stock exchange. It is hoped that this type of information continues to be made available to the public, and Barbadians would be urged to make use of the invaluable opportunity. 

 

Still, there is much more that could be done to raise awareness of the importance of investing. The message can be tailored for local media, namely television, radio and print, which may be more effective in getting over the point. Furthermore, just as insurance agents push their product, financial representatives need to change their approach and do the same. Go to the people, don’t wait until they show interest; for therein lies the problem! 

 

The final goal is to ensure that all Barbadians are familiar with the financial tools available and know that they can get involved and change their lives regardless of their present financial situation.