There’s no question money management is key to success and financial freedom.  This I have had to figure out the hard way because like most of my generation and those before us, financial literacy was inexistent.   I’ve made my share of mistakes, some of which I’m still paying for but thankfully now on the right track.   These can be avoided by you our youth and the sooner you mind your monies, the more secure a future you could have.  

How do you chart a path to a secure financial future?  Some things to consider. 

1.   Do you have a bank account/wallet to keep your money?  I know a current account maintenance costs anywhere from Rwf500 – 1000 a month in Rwanda (you can unite and ask banks to waive fees for youth – power of numbers😃).  Nonetheless, be sure to shop around for the bank which makes the most sense for you in terms of products, services and costs.  You are giving a bank business by entrusting them with your monies.  Therefore they must endeavor to provide the best services to meet your needs to keep your business. 

2.   How are you paid?  Is it cash/check or direct deposit into your account?  I hope it is the latter.  Choosing a direct deposit into your account is best because you establish an earning statement with the bank which comes handy later.  No matter how much you earn, you need to put in a financial institution because what starts as Rwf5000 can turn into a bigger amount either through interest earned or a loan received to grow yourself.  More on this in another piece. 

3.   Do you have financial tools attached to your bank account i.e. Debit card or mobile banking?  A debit card is directly linked to your account and allows you to pay for goods and services at merchants and/or online.  For example most debit cards have a VISA logo – that means everywhere you see that sign, you can make a payment with your debit card.  If you must get cash, you can use it to withdraw money at any ATM with the same logos.  You notice I didn’t say ATM card, which is what you call it because someone at the bank may have called it that and unfortunately led you to believe it is only usable at the ATM.  This is the only time I will speak of ATMs because as much as are easier/faster than lining up at the bank, they promote a cash economy and continue to delay the digitalization of our economy. Will write more on why digitization of your payments is important for you and crucial to sustained economic development.  

4.   Do you withdraw all your money or keep some on account until later?  It isn’t smart for you to withdraw all if you don’t have to because you have to worry about keeping that money safe and most of all, it doesn’t help your relationship with the bank.  Why? Well if say you need to borrow a personal loan, your chances of approval diminish because you the bank doesn’t really benefit from your business.  You see banks’s core business is to mobilize deposits in order to lend.  If you withdraw all your monies when they come, what value to you bring to the bank and why should they trust you with other people’s money (loan)?  

Whether you work or get an allowance from family or government, you can manage your money.  It is absolutely important that you do. First step is opening an account for it to be kept safe and getting digital tools to interact with your account.  And it is how you manage this account which will determine if you shall be creditworthy (eligible for a loan) in the future for your personal growth.