7 Steps to Financial Literacy

1. Do not talk/think negatively about money. When people complain about how difficult it is to make money, tell yourself there is always a decent way to make money. Think of how you can help people solve their problems and get paid or how you can offer services that attract fees.

2. Do not spend it all. Make it a habit to always keep a part of any amount of money that you get, no matter how small or huge the sum of money is. If you make a million and spend a million, you are still poor. Being wealthy is not about how much you make but more about how much you keep.

3. Set financial goals. You are most likely dreaming big for your future and it is healthy to do so but you need to set short-term and long-term financial goals in order to be able to achieve all your dreams.

4. Create a budget. It is important that you create a budget so you know how much you can save regularly and what you can spend on your needs. Remember to give 10% of whatever you earn or get as a gift; make it part of your budget. You can either give it to a church, mosque or any charity of your choice. You may also give it to any needy person who cannot pay you back. Giving is  necessary for multiplication.

5. Save to secure your future. If you practice the habit of saving money to pay bills or to buy something that takes your fancy, that is not saving; you are just postponing your cycle of spending. Your savings should be to take care of your future. The only time you should be spending your savings is when you are adding it to your investment or if there is an emergency. 

6. Do not copy lifestyles that you cannot afford. It is sad to see that some young people would do anything to live a ‘fake lifestyle’ just to impress someone or to be like another person. Even if your parents are footing the bills, it is not your money so get rid of the entitlement attitude and be modest. Learn to work for the things you want and don’t want anything you cannot afford; focus on your needs only.

7. Learn the art of investing. Investing is an extremely powerful concept, especially for you as a young person. You have the gift of time which allows for compound interest on little amounts of money that you invest regularly. You need to get a lot of information which you will use in picking the right investment and don’t be greedy. If it looks too good to be true then it is not true. Avoid get-rich-quick investments, if possible talk to a trusted expert before parting with your money.

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MRS. OLAKITAN WELLINGTON is the CEO, Seeds of Wealth Project International Ltd, a financial literacy education outfit. She is a former interpreter at the Nigerian Consulate, Hamburg, Germany;  business coach; the National President of the Internet Marketers Association of Nigeria; member of the Nigeria Internet Group; Former Publicity Sec., NECA’S Network of Entrepreneurial Women (NNEW); NNEW Project Coordinator’ Alive & Thrive Infant and Maternal Nutrition Project, powered by Bill & Melinda Gates Foundation; active member of many entrepreneurial bodies. She is a recipient of the World Bank’s Women X Scholarship and holds a Certificate in Entrepreneurial Management from the Enterprise Development Center of the Pan-Atlantic University, Lagos. A real estate investor and a serial entrepreneur of repute. Olakitan Wellington is passionate about issues pertaining to the youth and women, particularly in building their capacity for financial independence. A published author, she has written two books on financial literacy.