The Ministry of Finance and Economic Planning has launched the Financial Literacy Week in Accra. The event is in response to Recommendation 98 of the Financial Sector Strategic Plan (FINSSP) which requires the Regulatory Agencies and the Ministry of Finance to launch an annual Financial Literacy Week in co-operation with industry associations and financial institutions to raise the awareness of the range of products and services available to consumers to help them better understand and manage their finances. Addressing the media at the launch, Dr Sam Mensah, Technical Director at the Ministry of Finance and Economic Planning, said the idea of a literacy week is to focus attention each year for one week on financial literacy. Dr Mensah explained financial literacy as the ability to read, analyse, manage and communicate personal financial conditions that affect material well being. Financial literacy, Dr Mensah said, includes the ability to discern financial choices, discuss money and financial issues without (or despite) discomfort, plan for the future and respond competently to life events that affect everyday financial decisions, including events in the general economy. He said as Ghana’s financial system becomes increasingly complex, there is a mounting concern that the burden of understanding and managing the details of financial products and services will be too much for most Ghanaians, especially the low-income and rural segments of the population. Dr Mensah noted that even in more financially developed markets, research has shown that a large percentage of people of all ages, incomes and education levels lack the basic financial knowledge and skills to ensure long-term stability for themselves and their families, and to drive the savings-investment requirements of the economy. In Ghana’s case, he said, savings and investment rates have been consistently below the levels needed for accelerated growth and poverty reduction. Dr Mensah, therefore, called for financial literacy to be part of any comprehensive strategy to develop the financial sector and to achieve accelerated growth and poverty reduction. Activities marking this year’s Financial Literacy Week include daily educational Programmes in the media on financial services, such as insurance, banking, securities and mutual funds. Other activities planned for the week are panel discussions and a National Senior High School Quiz on financial literacy. Source: ISD