CESVI

FINANCIAL LITERACY
PALABEK REFUGEE SETTLEMENT
Financial Literacy: “Get
Informed”
 Financial
“Knowledge” means having an
Literacy
understanding of personal financial issues
“Skills” means being able to apply that
knowledge to manage one’s personal
finances
“Confidence/Attitude” means feeling
sufficiently self-assured to make
decisions relating to one’s personal
finances.
 Financial Literacy

SKILLS
FINANCIAL
LITERACY Behavior
SEEKS TO KNOWLEDGE
INFLUENCE change
CONFIDENCE/ATTIT
UDE
 FINANCIAL
LITERACY
Financial Literacy:
• It teaches people concepts of money and how to manage it wisely.
• It offers the opportunity to learn basic skills related to earning,
spending, financial planning, cash flow management, enterprise
development, marketing, saving and borrowing.
• The good news is that when people do become more informed
financial decision-makers, they can plan for and realize their goals.

Therefore Financial Literacy involves understanding

• The financial principles you need to know to make informed financial
decisions
• The financial products that impact your financial well
• Change in behavior towards financial issues
 Financial Literacy

Financial Literacy enables one to:

• Understand the key financial products you may need
throughout your life
• Understand basic financial concepts like compound
interest, investment return, risk, and diversification and
so on.
• Discuss money and financial issues – even if you don’t
really like to talk about them.
• Make good financial choices about saving, spending
and managing debt
• Respond competently to changes that affect your
everyday financial well-being
 Outcome of
Financial Literacy

Current Behavior  Desired Behavior

 Current and Desired
Behaviour
Current Behaviour Desired behaviour
Financial Literacy
•Do not understand • Express themselves
their rights and and understand the
responsibilities terms and condition of
the service or product
•Can not understand •Can take an offer of a
the terms and service when they
conditions know the terms and
conditions
 Current and desired
behaviour
Current Behaviour Desired behaviour
Personal Financial Management
Live on day to Make a spending
day basis plan / budget and
use it to manage
finances
Savings
Savings not linked Have a savings plan
to savings goals with clear goals
 Current and desired
behaviour

Current Behaviour Desired behaviour

Loan Management
Borrows for emergencies Maintain an emergency
savings plan

Investment
Can’t choose the right Understands the various
investment options available
 Current and desired
behaviour
Current Behaviour Desired behaviour
Insurance
Limited knowledge on Increased use of insurance services
insurance services to meet financial goals
available
Planning for Old age
No retirement plan Has developed a plan for old
age/retirement
Financial services providers
Limited knowledge of Know about financial options and
financial services their terms and conditions
 Skills, attitude and
knowledge change
Knowledge Skills Attitudes
Personal Financial Management
The benefits Make a spending Discipline to
of plan stick to
a spending a spending plan
plan
Savings
The purpose of Make a savings Belief in the
savings plan benefits
of savings
 Skills, Attitude And
Knowledge Change
Knowledge Skills Attitude
Loan Management
Elements of loans Ask appropriate Caution in making
(interest rates, loan questions borrowing
terms, fees, before taking a loan Decisions,
penalties, delinquency Strength to say “no” to
policies) unfavourable terms
Investment
Different forms of Questions to Caution in making
investment consider when Investment decisions
making an
investment decision
 Skills, attitude and knowledge
change
Knowledge Skills Attitude
Insurance
Insurance Terms Read and Confidence to go for
understand the right Insurance
different product
Insurance Terms
Planning for Old age
Factors that affect Make a plan for Discipline to follow an
Old age planning old age/retirement old age /retirement
plan
Financial services providers
Types of services Follow procedures Confidence to deal with
provided for banks, bank staff,
by banks (savings, using bank ATMs
loan and insurance products
 PERSONAL
FINANCIAL
MANAGEMENT
“USE MONEY WISELY”
 What is Personal
Financial Management
This involves key aspects of planning
your income sources as well as where
expenditure can be made.

A budget is one major tool to manage

income and expenditure in one’s life.
 What Is a
Financial Plan?
 How can financial
planning be helpful to you
and your family?
 What is a Budget?

“A budget is a plan that lays out what you

will do with your money.”
 Three Things You
Can Do With Money
i. You spend money for day-to-day needs such as
food, housing, transportation, clothing, healthcare,
debt repayment, and optional expenses such as
watching foot ball, taking alcohol and others.
ii. You save money for unexpected emergencies,
unexpected opportunities, or to meet short- and
medium-term financial goals.
iii. You invest money in business ventures to earn
income over the long-term.
Benefits of a Budget
 How Do You
Make a Budget?
1. Keep track of your income and expenses
2. Create budget categories that are appropriate for
you
3. Set your financial goals
4. Allocate your income across your budget
categories
Factors that Influence
our Budget behaviors
 Ways to Improve
Budgeting

• List all income sources

• List all expenses
• Plan ahead to prevent spending more than
your income
• Save surpluses to meet future expenses
when income is low
How to Stay Within
Your Budget?
How to Stay Within
Your Budget?
 IMPROVING BUDGETING
• List all income sources
• List all expenses
• Plan ahead to prevent spending more than
your income
• Save surpluses to meet future expenses when
income is low
 Ways to Cut Spending
 Consume less of non-essential items (beverages,
snacks, luxuries)
 Spend less on parties and festivals
 Lower expenses on life events such as marriages and
funerals
 Save enough to buy necessities in larger amounts at
lower costs
 Plan ahead to buy necessities when the prices are lower
 Buy less on credit
 Carry less money or save money in a safe place; the
temptation to spend it won’t be there
 Conclusion
• Spend wisely
• Save regularly
• Invest prudently
SAVINGS: “YOU CAN DO
IT!”
 Savings

Saving is the practice of

What is putting aside part of your
saving? current earnings for
future use.
Ways to
Save
 Important Factors for Deciding
Where to Save
• Deposit requirements for the savings account.
• Terms of use
• Cost.
• Access/Ease of use
• Safety
• Liquidity.
• Interest.
 Internal/External Factors
Influencing Savings
• A safe place to keep savings
• A good savings plan
• Discipline
• Family support for the decision to save
• Motivation to meet personal goals: house, marriage, education, etc.
• Culture
• A convenient place to save (close to home, easy access, etc.)
• Interest on savings
• Desire to resist temptation to spend money on luxury items
• Size of allowable deposits fits ability to save
• Willingness to reduce expenses
• Ability or opportunity to earn more income
 External
influencers of
savings

Slid
e
Is where you save
safe?
Where Setting aside a portion of
Do income
Savings
Come
From? Cutting costs (household
expenditures, debt payments,
optional expenses)
Two Rules of Saving
Tips for Saving
Encourage Children
to Save
What is a savings
Plan?
 How to Make a Savings Plan
 Set savings goals.
 Figure out how much you need to save over what period of
time to meet your savings goals.
 Set a savings target.
  Figure out how much you are earning over this period of
time, the regularity (or irregularity) of your earnings, and how
much you can expect to save on a regular basis.
  Identify which expense you can cut back and reallocate this
amount to your savings.
  Decide where you will save. Identify places to save, available
savings products, and their pros and cons.
  Plan how much and how often you will save.
  Keep track of your savings.
 Rules of Thumb for
Savings
• Save as much as you can as soon as you can.
• Save as you earn.
• Save 10% of your income
• Pay yourself first—put 10% of your earnings aside
• Pay off your debts: Total household debt should
not exceed 36% of household income.
• Calculate how your money can grow over time if
you save regularly in an account that earns
interest.
 Rules of Thumb for Savings
• Don’t carry a lot of cash—avoid temptation to
spend it!
• Spend carefully.
• Keep a minimum of 3 months of living expenses
in an emergency fund at all times.
• Find savings products that match your savings
goals.
• Keep emergency funds in a separate account.
• Open 2 savings accounts—1 for emergencies and
1 for savings for other goals
• Keeping some savings “out of reach” is important.
Loan Management
“Handle with care “
What is a Loan?
Components of Credit
Three Reasons People
Borrow
Costs of a loan
Costs of a loan
 Questions for Lenders
• What is the interest rate?
• How often must the loan principal and interest be paid?
• What is the amount of each installment?
• What amount of savings is required and how often must
deposits be made?
• What fees must be paid to obtain a loan?
• What penalties are charged for late payments?
• Where are loan payments made?
• How far away is this from my place of business?
• How often do meetings take place?
• How long do the meetings last?
Important Factors to Consider
When Choosing Lender
What questions should you ask
when shopping for a loan?
 What to Know Before Borrowing
• The amount of your loan payment, including principal,
interest and fees
• The sources of income and/or savings you have to make
those payments
• When you will actually get the loan money in your hands
(will it be before you need it?)
• That the asset you are buying with the loan will outlive the
loan, and continue earning income for you
• That the price you can charge for your goods financed with
loan money is high enough to both repay the loan and
make a profit
Advice about Taking Loans
 Borrowing
Borrowing involves understanding your rights and
adherence to obligations/responsibilities

Responsibility
Right Something I should
Something I comply with, something
deserve, so I can I must do as a result of
ask for it a deal or agreement.
It’s an Obligation
 
 
 Rights & responsibilities

Rights Responsibilities

Treated with respect Evaluate the offer

Choose/Decide
Information
Treat others with
Listened to respect
Redress Provide the right
Access to information
Service/Product
Comply with terms
 Delinquency

A delinquent borrower is
someone who is late
making her loan payment.
 Ways to avoid default

• Borrow only the amount of money you can afford.

• If you miss a payment, make sure to be honest with the
lender about your troubles.
• Get advice about how to repay your loan from the
lender, friends and family.
• Cut some costs to make your debt payment.
• Consider making improvements to your business
practices to sell more products and services
 Aggressive Lenders!!!!!!!!
• Beware of anyone who comes to your door offering easy loan
money.
• Beware of “special offers” good for a very limited time.
• Beware of lenders who discourage you from reading the loan
agreement because it is just “standard”!
• Never sign a loan agreement that you do not fully understand. Ask
questions until you get the answers you need.
 How to Protect Yourself Against Predatory
Lenders
Ask yourself Make sure you:
Do I really need this loan? Evaluate all the financial
options for meeting this
financial need.
How will I use this loan? Know how the loan will help
How will it help me earn you.
more money?
What are the costs of taking Know all the costs and
this loan? terms associated with the
loan, especially the penalties
for late payment and
refinancing.
Can I afford it? How will I Have a plan for repaying
manage to repay? that is based on your
 How to take control of your Debt
• Make a list of all loans, repayment amounts and
repayment dates
• Pay the minimum amount due on each loan
• Explore the possibility of consolidating all your loans into
one loan.
• Use any extra cash to pay off the most expensive loan
first
• Set aside money for loan payments regularly
• Look for ways to cut down expenses to free up a little
more money for debt servicing
The Bottom Line
 Note

When you borrow money, you enter the

world of debt. It has rules, players and
strategies.

One of the best things you can do for yourself

is to learn how to use debt well.
Two simple rules to help you control
your debt:
 INVESTMENT:
“Let your Money Grow”
 Investment
  Investing is putting your money to use so
as to allow it to grow.

“An investment can be in form of property

such as livestock (cows, goats, pigs), land
(rental apartments, buildings), business
(market stalls, grocery shops, boda-
bodas) or shares and bonds from which
you can earn profits”.
 TYPES of investment

Short
Term Medium Term Long Term
Investmen Investment Investment
t
 Investment
How to monitor stock performance

a. Review your account statements

b. Check stock tables
c. Compare against benchmarks
d. Get current news on the companies you're invested in
e. Use indicators to re-assess investment decisions
f. Consult your adviser
g. Follow stock market news
h. Keep up with general economic news
 Types of Investments
1. Fixed Deposit or Certificate of Deposit: This involves lending your money to the
financial institution and benefit from the interest that accrues on the money.

2. Real Assets: Investment in property or real estate, land. This is investment in real
assets with anticipation of increase in value in future.
3. Stocks (Shares): It’s the ownership of a company. Stock
represents a claim on the company assets and earnings. It
involves receive a piece of the company and become a part
owner or share holder. There are two different types of
stocks include common stock and preferred stock. Whether
you say shares, equity, or stock, it all means the same thing.
A stock is represented by a stock certificate
 TYPES OF INVESTMENT
4. Bonds: A debt investment in which an investor loans money to an entity (corporate
or governmental) that borrows the funds for a defined period of time at a fixed
interest rate. Bonds are used by companies, municipalities, states and Government
to finance a variety of projects and activities.

Bonds are commonly referred to as fixed-income securities and are one of the
three main asset classes, along with stocks and cash equivalents.

5. Collective Investment Schemes (CISs): These are private financial arrangements

regulated by government through the Capital Markets Authority (CMA), where
many small investors pool resources

6. Government securities (treasury bills): These are agreements where an individual

or business lends money to government for a specified period of time (between 3
months and 10 years) after which they will get their initial money back plus
interest.
 Why invest?
People invest to:

• Create wealth and security

• Increase the ability to earn more income
• Establish income generating facilities in old age i.e. when
retired
• Create jobs for self and family
 Investment plan
Steps to reaching your financial goal

Develop an investment
policy statement

Choose your investment

strategy

Calculate how much you

need to save each month

Set Specific and

realistic goals
 Making Investment Decisions

Influencers of Investment decisions

• The capital
• The goal and plan
• The environment
• The culture
 Questions to ask before you make
an investment decision
• How does the investment work? Do you understand the investment
well enough to explain it to someone else?
• What are your goals? Are you looking for safety, income or growth from
this investment? Or both growth and income?
• What are the risks of this investment? Are you comfortable taking these
risks?
• How much do you expect to earn on this investment? Is this realistic?
• How long do you plan to invest? Is this a short-, medium- or long-term
investment?
• What are the costs to buy hold and sell the investment? And will you
pay taxes on the money you earn?
• What other investments do you have already? How does this
investment fit with your other investments? How will it change your
asset mix
 Safe Investments
These statements can guide you when planning to invest
• I must know ahead of time exactly what I’ll make on the investment.
Even if this means I’ll make less than I could on other investments, I
prefer to know how it will all work out.
• There must be little or no chance I’ll lose money. I don’t want to wake
up one morning and find out I’ve lost all of my money.
• I want my money to grow steadily, with no ups and downs along the
way. I don’t like to worry that my investment might not work out.
• My money must grow at least as fast as prices rise. That way, the
shilling I have today will be worth the same or more in the future.
• I can get my money out when I need it. If something comes up, I
know I can tap into my savings quickly, without paying a big penalty.
Remember: Not all investments are equally safe.
 Risk and investments
Every investment comes with a risk. There is a risk of losing
money when your investments lose value, are stolen,
mismanaged, destroyed or damaged.

Note:
• Don’t put all your eggs in one basket!!!!
• The rule of risk is simple: You have the potential to earn
more when the risk is high and vise versa.
• Diversify
 Tracking returns on investments

1. Find out your rate of return

2. Assess your progress toward your goals
3. Measure your results against other investments

Take a look at:

• How much you have invested,

• The growth you wanted, and
• What your investment is worth today
 Funds for investments
• Personal
• Group funds
• Loans
• Re-Invested profits
 Getting professional advice
• Helps to make informed decisions
• Helps to identify scams

Contact for information

• Uganda Investment Authority

• Capital Markets Authority (Get the list of investment
advisors)
 Investment Mix
Diversification is a way to try to reduce risk by choosing a
mix of investments. With a diversified portfolio, you
spread your money across different types of investments
(or asset classes).

The three main asset classes are:

• Cash and cash equivalents – like savings accounts

• Fixed income investments – like bonds
• Equities – like stocks
 Why Diversify Investment
Four Reasons:

• Not all types of investments perform well at the same time.

• Different types of investments react differently to world events,

interest rates and other factors in the economy.

• When 1 type of investment is down, another may be up.

• Having a mix of different types of investments may help smooth out

your returns.
 Asset Mix
The right asset mix should:

• Help balance risk with your expected rate of return on your

investments

• Fit your tolerance for risk and comfort level for risk

• Let you to get your money when you need it

• Help provide the growth you need to reach your goals

• Change as your needs and goals change over time.

 Stage in Life and INVESTMENTS
Age and life situations affect investment decisions

Early Years Retirement

Middle years
years

-Safer
-High Earnings
-Guaranteed
-Less Savings -More
Investments
-Take more risks responsibilities
-Savings
-Long term -Safe investments
protected
investments -Less risks
-Investments that
investments
have constant
stream of income
 Invesrsonality
• Knowing what kind of investor you are, ask the
following questions:
• How much risk can you tolerate?
• How much do you expect to make on your
investments?
• How long do you plan to invest for?
• Do you need quick access to your money
 Conclusions
Investments make a difference if they can generate higher
future cash flows than today. You invest because you expect
to earn more cash in future. Many people make mistakes in
investing in assets that do not appreciate in value and
deteriorate over time.

Before investing your money, calculate what you expect to

earn in future from the investment. Compare it with other
investment alternatives. Choose the investment that has a
possibility of giving you a higher return much faster.

Be careful in making an investment; flexibility may not be there

or may be very expensive to switch to another. If you are not
sure, of what to do, consult experts.
 Insurance:
“Protect your Family’s Future”
 Insurance
Definition:

Insurance is a form of protection against the threat or

possibility of loss

It is an arrangement in which an insurance company

compensates a person or a company for a specified loss
caused by e.g. an accident, fire, injury, illness or death in
return for an agreed amount of money paid in advance
(this is called a premium).
 Types of insurance

Different insurance products, or policies for different risks

that can be purchased include:

• Health insurance,
• Car insurance-Third party etc,
• Property insurance
• Life insurance.

A customer can purchase more than one insurance policy

depending on the anticipated risk.
 TERMS in insurance
An insurance policy is a contract between the client and the insurance
company.
It includes the following details:
• The premium is the price the client has to pay the insurance
company for the protection described in her/his insurance policy.
• Benefits is the money that the insurance company promises to pay to
the client if a loss covered occurs, for example, if a fire occurs and
clients loses her sewing machine and fabric, the insurance company
will pay her/him.
• The beneficiary is the person who receives the benefits that the
insurance company pays.
 Insurance Terms
• Eligibility refers to the criteria that determine who can purchase an
insurance policy.
• A claim is the request for payment that the policyholder sends to the
insurance company when the client suffers a loss (equivalent to the
value of the things lost).
• Exclusions are specific conditions or circumstances that the policy
does not cover.
For example:
a. Property insurance policy will not pay for losses caused by fire if the
property owner starts the fire.
b. Many life insurance policies will not cover the death of the
beneficiary if he takes his own life.
c. Some health insurance policies will not cover, or exclude, insurable
diseases.
 Property Insurance
Applies to those who own valuable assets such as a house,
a car or equipment they use in their business.

In many countries, the government requires people who

own motorized vehicle cars, trucks, motorcycles to
purchase vehicle insurance to protect everyone against
injury, damage and loss due to accidents.
 Health Insurance
If you want to purchase a health insurance policy, you will have to
decide which of your family members to include in the policy.

Some policies charge extra premiums for each family member you
add to the policy. Some offer a basic package for a family of
four, and charge extra for any more family members.

Life insurance policy: Benefits are paid when the policyholder dies,
so that person obviously cannot be the beneficiary. Let us think
about the beneficiaries of a health insurance policy.

Who is the beneficiary for a health insurance policy?

Usually the policyholder and, at an extra cost, his or her
immediate family.
 Other types of Health Insurance

• Liability Insurance
• Disability Insurance
• Travel Insurance
 Things to note about insurance

• Prepare for the unexpected: When you get insurance, you take
away some of the financial risks of unexpected events.

• Find the right policy: There are different insurance companies,

which offer different policies such as insurance against fire,
burglary, and ill-health, loss of life and car accidents.

• Look for an insurance company that has the best service (“shop
around”)
Get information from different insurance companies, agents,
brokers and friends who have bought insurance or from the
Insurance Regulatory Authority of Uganda (IRA).

• Take the right steps to get your insurance policy:

 Things to note

• Make a quick and honest claim: inform your insurance company

immediately.

• Report thefts, accidents and other damages to the police before

going to ask for compensation from the insurance company.

• Complain if you are treated unfairly: If the insurance company

refuses to consider your complaint, or you consider that the
insurance company has not responded fairly to your complaint,
you can approach the complaints bureau at the Insurance
Regulatory Authority of Uganda (IRA).
 Conclusion

Insurance can seem complicated. But now that you understand the
basic idea, you can evaluate if the protection from the insurance
is worth the cost of the premiums.

It is worth the effort to understand each component and make sure

you accept all the conditions.

Make a commitment to talk to your insurance agent about these

issues.  
Planning for Old Age/Retirement
“Invest for your old age”
 Planning for old age/retirement

Old age/Retirement is the stage where a person stops working

completely.

Old age/Retirement is the career change you make when you are no
longer required to work full time and you have some freedom to
choose the life that you want to live and involves planning, the need
to learn about your own strengths and priorities, networking, the
change in income, the need to try out new things, and the choice of
a new direction.
 Old age/Retirement

The amount of money you need depends on your lifestyle

and retirement goals.
 Planning for retirement

It’s important to determine how many years you

expect to live in retirement. It’s always better to
think longer rather than shorter to ensure you
have enough money

What would you want your life to be when you

reach retirement?
Planning for old age/retirement
 Planning for retirement

• Determining the need (What)

• Determine how you plan to retire: This can involved the

different ways or strategies you will retire.

• Determine where you plan to put your retirement

benefits. This could be in form of savings, investment,
assets etc.

• Determine how much you will need in your retirement

 Planning for old age/retirement

Take the time to think through the options you have to

finance your retirement.

Ensure there is sufficient funds to maintain your

financial independence later in life.
 WAYS TO PLANNING FOR
INVESTMENT

First step is to talk to your financial adviser. He or she will

assess your financial situation and determine how much
you need to save for retirement.
 Different ways of planning for Old
age/retirement

1. Savings: To increase the savings for retirement

• Rethink your goals

• Postpone your retirement
• Increase your contributions to your retirement
account;
 2. Social Security
Applies to employees of a private company or a Non-
Governmental Organization (NGO)

There is a 5% deduction from your salary sent to the

National Social Security Fund (NSSF).

Employer makes a 10% contribution to the NSSF every

month.

It’s a compulsory contribution by the laws of Uganda. It is

always important to get your statement
 3. Government pension
Scheme

This applies to people employed by Government (e.g.

ministries, government hospitals, schools, security
forces)

The Government pays you a certain amount of money

every month for 15 years after you have retired.
 4. Company Retirement
Plans

These are benefits provided by many employers and they

vary greatly from company to company.

In some cases, the employer pays into a retirement fund

for the employee
 5. An annuity

This is a retirement account

Annuities are based on a contract where you pay in a

specific amount each month and receive a guaranteed
amount each month when you retire.
 6. Assets
This may include for example Real Estate, Houses,
Animals that can generate income in future.

Most assets especially land appreciate in value over time

 7. Insurance

Insuring for old age/retirement is very important.

There are various forms of premiums that you can

consider.

When you retire, your insurance needs will likely change.

 Planning for old age/retirement

Factors that affect planning for old age/retirement

• Expenditure pattern’
• Income levels
• Attitude
• Culture
• Lifestyle
 Old age/retirement
Transitioning from working life to retirement takes careful financial
planning and decision-making – give yourself plenty of time to
prepare

Getting ready:

• Convert your savings to income

• Pay off your debts
• Calculate your monthly income
• Make a budget
• Review your insurance needs
• Review your will and powers of attorney
 Increasing your income in
retirement

Sources of extra income

• Work part-time
• Rent out part of your home
• Moving to less expensive home or region
• Sell and downsize
 Retirement and investment

The reason for establishing a retirement account in your younger

years is to let it grow through out your life. You want your
investment to earn a high rate of return so you have more
money when you retire.
 Investment risk and retirement
Risk is the potential of losing some or all of your money.
However, you still have risk, if you do not invest.

"As you grow older, the risk taking profile has to change and
mellow down. Your investments should reflect this
change." Agree. If you are in your twenties, your time
horizon is 40 years. You objective is to build assets. On the
other hand, a retiree does not have a time horizon of 40.
You objective is to preserve capital.
 Planning for old age/retirement and
investment

• Trust and control

• Worry
• Lack of self-control
• Age and financial literacy
 Conclusion of retirement

•Planning for retirement is a choice. You must decide what

is best for you and then determine how to make it possible.

•Your goals for later in life are as important as your short-

term goals,

•While many older adults enjoy working to stay active and

involved, it’s much different to work because you want to
than because you have to!
Financial SERVICE PROVIDERS
“Know your options”

Slide No.
121/11
 FINANCIAL SERVICE
PROVIDERS “KNOW YOUR OPTIONS”

What These are both financial and non

are financial institutions that offer
financial services.
they?
Non financial
institutions?
FORMAL financial
institutions?
 Classification of Financial

Industry-1

• Tier i - Commercial Banks

• Tier ii – Credit Institutions
• Tier iii – Micro deposit taking Institutions
• Tier iv – Other Financial Institutions.
Classification of Financial Industry -2

Examples include :
Centenary Bank,
Stanbic Bank,
DFCU, Finance
Trust Bank
Classification of Financial Industry
-3
Classification of Financial
Industry -4
 Financial Needs Organizational
Chart
Everyday Expenses Expected Future Unexpected Future
Expenses Expenses
Household expend. Birth Disability
Food Buy a House Death
Transportation Marriage Funerals
School fees Old age Major illness
Rent Refrigerator Unemployment
Clothes Business equipment Divorce
Entertainment Major holidays Business failure
Religious ceremony Riots
Parental care Natural disaster
Vacation Crime
Furniture Accidents
Business supplies Death of spouse
Injury
Pregnancy
Strikes
FINANCIAL SERVICES
 The Benefits of
Banks
• Security that banks offer
• A variety of products (savings and Loans).
•  Discipline ( saving and borrowing).
•  Saving at a bank keeps your money out of reach 
• Building an official credit history that is more widely
recognized than credit experience with informal
lenders.
• Banks are regulated by the government, minimizing
your risk in depositing your funds with them.
 Rights and responsibilities

Something I deserve, so I
can ask for it Something I should comply
with, something I must do
 
as a result of a deal or
agreement. It’s an
Obligation

Right Responsibility
 Rights & responsibilities
Rights Responsibilities

Treated with respect Evaluate the offer

Choose/Decide Treat other with respect
Information Provide the right
Listened to information
Redress Comply with terms
Access to Service/Product
 Conclusion
Understand your rights and obligations.
Be informed

No financial institution is allowed to ask you for

a bribe to access any of their services or for
any other purpose.
Thank you very much
for your attention