Introduction:
Did your parents talk to you about money? Mine didn’t. And I know that in so many African families, financial discussions were considered “grownup” talk, leaving countless children to navigate adulthood with either no relationship with money or at least not a healthy one. The consequences of this lack of financial education manifest in various ways, including wasteful spending, excessive savings, inadequate retirement planning, a lack of legacy building, greed, corruption, and a failure to give back. These behaviors reflect an unhealthy mindset toward money, highlighting the need for change. This article explores the role of culture in shaping our financial behavior and introduces Ruwah, our solution that aims to break the scarcity mindset cycle and empower African children with financial literacy skills.
Financial Beliefs, Values, and Community Influence:
Culture influences our beliefs and values surrounding money. Different cultures have varying attitudes toward wealth, saving, spending, and debt. For example, some cultures prioritize frugality and saving for the future, while others emphasize immediate consumption and the display of wealth. These cultural beliefs and values greatly impact our financial decisions and behaviors. In addition, culture often dictates the influence of family and community in financial matters. In some cultures, financial decisions are not discussed, in others they are made collectively, with input from extended family members or community elders. Family and community expectations regarding financial support, sharing resources, and maintaining social status can significantly shape individual financial behavior.
Education and Knowledge Transmission:
Cultural norms and traditions determine how financial knowledge is transmitted across generations. In some cultures, financial education is imparted through informal channels, such as storytelling or observing family members’ financial practices. Formal financial education programs may be influenced by cultural perspectives and beliefs, impacting the topics covered and the way information is taught. In Africa, this has often been overlooked, both in the family and community context as well as in the educational system.
Cultural factors can also shape individuals’ perception of risk and their orientation toward the future. Some cultures may have a strong emphasis on long-term planning and risk aversion, encouraging behaviors such as saving for retirement or investing in stable assets. Others may prioritize immediate gratification, social status, material possessions, and conspicuous behaviors to spend on certain products or experiences or have a higher tolerance for financial risks.
The Importance of Early Financial Education:
To address the cycle of financial illiteracy and promote wealth creation, it is crucial to start financial education at an early age. Many existing personal finance solutions in Africa neglect this fundamental element, focusing primarily on adults. Ruwah recognizes the need to empower children and teenagers with ethical ways of creating wealth. Our prepaid debit card and financial literacy app for kids and teens aim to instill the value of earning, saving, and investing money from a young age.
Ruwah was born out of the journey and self-education of its founder, a former investment banker and business leader. The platform’s goal is to teach children and teenagers aged 7-18+ about money, wealth, and financial management. Through the Ruwah prepaid debit card and pocket money app, young individuals gain practical knowledge and experience in earning, saving, and investing.
Breaking the Cycle and Leveling the Playing Field:
Ruwah’s mission is to democratize financial education and help break the cycle of knowledge flowing only to a limited part of the world and to a certain group of people. With our e-learning platform, our goal is to level the playing field empowering children from diverse backgrounds by providing practical training and applications that transform a child’s relationship with money and wealth. Through practical knowledge, we prepare them mentally and technically to pursue their dreams.
Conclusion:
Culture plays a significant role in shaping our financial behavior and addressing the lack of financial education in Africa is crucial. Understanding the influence of culture on our financial behavior is essential for developing effective financial education programs and initiatives. By recognizing and addressing cultural factors, financial literacy efforts can be tailored to specific cultural contexts, making them more relatable and impactful.
Ruwah is at the forefront of this effort, providing a comprehensive financial literacy platform for kids and teens. By starting early, Ruwah aims to break the cycle of financial illiteracy and equip African youth with the necessary skills to build a prosperous future. Join Ruwah’s programs and witness the transformation in your child’s financial mindset and abilities. Together, we can empower the next generation and create a brighter financial future for Africa.
Hope to see you on the inside!
