Financial Literacy for Students: Managing Your Money in Nigeria

Financial literacy continues to be an important part of life skills because it gives students the knowledge and tools they need to make smart money decisions. In order to improve the economic dynamics and financial systems of Nigeria, which may differ from those of other nations, it is essential to focus on financial literacy. We want students to leave our workshops with the necessary financial knowledge they need to properly navigate their finances and, as a result, build solid foundations for future financial well-being.

1. Understanding the Fundamentals of Finance:

Budgeting: Check your income, expenses, and savings deposits to create a budget. To avoid high finance costs, this simplification helps to strike a balance between assets and liabilities.

Income versus Expenses: Classify the various types of expenses and sources of income. First and foremost, select the items that you absolutely require and steer clear of impulsive purchases.

Saving and Investing: Learn about the importance of saving money and some easy types of investments.

Listen to the provided podcast: Even if it’s just a small amount saved each month that you won’t miss, it can add up to a lot over time. Also check out Ifan Le keja le Networking: Connecting Nigerian Academics

2. How to Get Around the Banking System in Nigeria:

Opening and Managing Accounts: Be familiar with the steps involved in opening and managing a bank account. Consider the postal or credit accounts that best suit your requirements, such as a checking or savings account.

ATM Use: Learn how to use an ATM, including how to take money out, deposit checks or change, and check your account balance.

Pay attention to ATM fees. Online Banking: For the convenience of your classes, you might want to think about using online banking services. Learn how to use secure methods like two-factor authentication and password protection.

3. Controlling Credit: Be aware of credit, which explains how credit works, how credit scores are calculated, and how it affects your financial health.

Responsible borrowing: It goes without saying that you should be aware of the terms of the loan and the interest rates that must be paid, so make plans to respond. Structure your borrowing to avoid falling into debt traps and going bankrupt.

4. Planning your finances for education:

Education Financial Planning: Scholarships and Grants: You might want to look for charitable organizations and scholarships to help pay for your education.

Student Loans: If you decide to take out student loans, learn about the terms, rates, and repayment options. Make a thorough assessment of your ability to repay and only accept debt that you can afford.

5. Entrepreneurship and part-time work:

Work-Life Balance: Think about part-time work in terms of entrepreneurship or full-time work and find a way to combine them with academic objectives.

Financial Goal Setting: Choose your money-related medium- and long-term objectives. For instance, the fictitious adolescent daughter might begin saving for a laptop, college, or so that she can start a small business.

6. Rights and Obligations of Customers:

Understanding Contracts: It is important to understand your rights and responsibilities when entering into a contract, such as a rental agreement or a purchase of goods and services.

Consumer Protection: If you don’t want to fall victim to a financial conman, learn about Nigeria’s consumer protection laws.

7. Understanding Insurance:

Insurance: The significance of health insurance should be remembered. a look at the options that are available, like insurance that covers educational facilities.

Asset Protection: Because some electronics can be very expensive, you should make sure you have specialized insurance in case something happens to them.

8. Emergency Fund:

Creating an Emergency Fund: Create an emergency fund to cover unforeseen expenditures. We are able to avoid credit cliffs brought on by unpredictability because we have financial security, which gives us hope.

9. Habits of Smart Spending: Establishing a habit of prioritizing the essential over the desire is one way to differentiate between needs and desires. This ensures that people will realize that necessities should not be prioritized over wants.

Comparing Costs: Before making a purchase, check the prices of the items you want elsewhere. As a result, findings of this kind can help cut costs and provide the right information for more thought.

10. Continuous Training:

Maintaining Knowledge: Stay up to date on economic developments, new financial products and services, and financial scene shifts.

Asking for Help: Don’t be afraid to get advice from mentors or financial experts. Continuous education is an essential component of financial literacy.