The Financially Savvy Guide

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I can't remember exactly when I grasped financial literacy, but the whole experience of what finance should be all about was amplified by the actions of my roommates.

Before we proceed with this blog post, let's familiarise ourselves with some basic terms that will come in as the post unravels.

First off, talking about financial literacy, we need to first know what finance is because, for some people, finance is synonymous with money, but in the actual sense, it is the management of money.

As far back as I can remember, I have always tied the value of money to its purchasing power and not its numerical quantity. Again, I have always held that when it comes to finance, what defines rich or wealthy is not how much money is in one's possession but how well the money is being utilised.

Back then, at the University, despite studying Economics, I already held a preexisting knowledge of money management, the scale of preference and opportunity cost. I already know the difference between needs and wants probably due to how I was raised because I can remember during my basic education, my parents never gave me money for snacks. What they did was give me food and water to school, as they believed I could get all the needed nutrients from there.

Thus, while my classmates go to the canteen for snacks and fizzy drinks, I'm in class munching on my meal and washing it down with water. There were times I desperately wanted to join in on the snacks and fizzy drinks, and when I approached my parents for some money, they said something remarkable that stuck with me.

After listening to me, my parents asked me if my meals were no longer satisfying and I responded that they were. After establishing the fact that I wasn't starving from insufficient food, they told me that I didn't need the snacks as they would never fill my tummy like food would.

I wasn't happy, and I protested; surprisingly, the African parenting style where I get some whooping for being disobedient was suppressed. Instead, my parents gave me a pep talk. They explained their financial situation and told me they could only afford what was sufficient, but if I insisted I wanted snacks, then I would have to forfeit my meals.

My parents gave me the option of choice which was influenced by their financial capacity at the time. I was young but I knew biscuits and caprison will not sustain me during school hours. I was bittered, but I understood the situation, so from there on, I cultivated contentment.

So while I advanced to the university, I already had my priorities and financial obligations set straight. I portioned the money I got from my parents and relatives according to my needs, which were food, educational materials, and data/airtime for my phone. I had little concern for clothing, wigs, bags, shoes and other accessories.

My dad got me some clothes, and from time to time, he gets me more clothes. I was contented not to join my roommates who dressed according to fashion season and trends.

I could swear that when it came to money, I didn't have as much as my roommates did because these girls were living the lives of already-established adults.

Everything they were involved with was a luxury to me, and I did well not to copy them. But then there was a twist. One minute these girls were going to the movies, lunch dates, shopping and changing their wardrobes. The next minute, they were coming to beg me for money for food, and honestly, it didn't make sense.

Sometimes I find myself giving them financial advice on the need for savings and not to exhaust all their money on their expensive lifestyle. When I saw that they weren't listening and they became heavily dependent on me, I stopped assisting them with money for food, and that was how I was hated, but I didn't care.

In the end, some of them could not even graduate as they ended up spending their school fees to keep up with the standard that they've set for themselves.

Looking back to those years, they were lessons that became part of my parenting style. Really, there is no age to learn financial literacy as children grow with whatever knowledge that you introduce them to. So, as soon as they start exhibiting some form of sense, they should be taught the importance of money, savings and how best to utilise it.

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