Word from the Governor
Financial Literacy has become a major public policy concern in advanced, developing and low income economics in the aftermath of the global financial crisis. Limited knowledge of Financial Literacy was identified as one of the factors that led to the global financial crisis. As a result, Financial Literacy was adopted as one of the instruments in the tool kit for preventing financial crises, Financial Literacy addresses the knowledge gaps surrounding making wise financial decisions thus empowering recipients to start at the household decision making level and ultimately influencing significant cconomic stability given the domino effect of responsible financial management.
Empirical research suggests that there is a clear causal relationship between Financial Literacy and Financial Inclusion. In addition, Financial Literacy positively influences financial behaviour such as managing expenditures, planning for retirement, saving consistently and with a plan, stock trade and holding, wealth growth and management, entrepreneurship, better financial practices, prudent investment decisions and debt management. Consequently, Financial Literacy has been identified alongside Financial Inclusion and Consumer Protection as a triad of variables that have a vital bearing on the stability of the financial system and by extension contribute to economic prosperity.