KETVI ROOPNARAIN
Mauritius has one of the highest literacy rates in Africa at 93% [1]. This is partly thanks to an effective primary education system. We are taught to read, write, and count. However, only 39% of us are financially literate.[2] Financial literacy is the ability to make informed and effective decisions about your money. It is a critical life skill but rarely formally taught.
Financial products are made for people like you and me, yet they speak a different language – filled with complexity and jargon. Would the smiling faces on the colourful credit card brochure look as happy if they found the famous asterisk * and read all the terms and conditions?
Without a basic understanding of financial concepts, people are not well equipped to make good decisions about saving, investing, and borrowing. If you don’t fully understand what you’re signing up for, you might miss bank charges, the hire purchase agreement you sign up for could impact your future borrowing capacity. We’re expected to understand it all and nobody likes to feel like an idiot. And so, we don’t ask. Instead, we nod politely and sign on the dotted line. It’s like not raising your hand when the teacher asks, “Any questions?” « Se imin, nou pa kontan perdi pwin… »
Financial literacy is crucial in addressing poverty alleviation, wealth inequality and social mobility. Unsurprisingly, these metrics have deteriorated since Covid-19 hit. Aptly, the Bank of Mauritius recently announced its Financial Literacy Strategy, launching an education series on its website.
In terms of money goals, plonbie, avoka, sofer kamion salte might come from different walks of life, but everyone has similar aspirations. A roof over our head. Food on the table. Good times with family and friends. An occasional treat. Good money management can help us make our goals a reality and give us peace of mind. Indeed, financial products can be an enabling companion throughout our lives.
We use a « savings account » to save some of our salary (while renting or staying with mama papa) for a deposit to get a « mortgage » for our future home. We open a « term deposit » for when the baby arrives. We might get a « loan or lease » for a car, perfect for picnics or taking Dada or Popo to hospital appointments. We purchase « life insurance » to ensure the family will be okay if we’re no longer around. We contribute to a « pension scheme » to maintain our desired standard of living once we’re happily retired.
However, not every financial product is good for our individual life circumstances. So before locking yourself into anything, find out your why. Why am I getting into this? Do I understand all the fees? Does this align with my long-term goals?
Ask the banker or financial adviser, « Xplik mwa koumadir mo ena 5an« . That’s what I say. Ask questions until you’re 100% comfortable. If you’re unsure, walk out. « Parey kouma nou chek katalog promosion avan al sipermarse », invest some time on the internet, shop around for the best deal, read the fine print on something that could impact your life for years. Make sure you’re getting the right product for you with zero upsell.
Back yourself, you’ve got this. Pa kas latet ar perdi pwin, pourvi pa perdi kas!
Your money questions answered
Ash, 27 an : « Mo pe sey ekonomize pou aste enn apartman selman nou abitie sorti ant kamarad. Kan mo sorti, mo pa resi kontrole, mo depanse. Mo pa le kas nisa. Kouma mo explik zot?
« Ash, to’nn deza tann parle “accountability buddy”? Li pli fasil pou nou res on track, si nou partaz nou bann goals ar nou kamarad. Kan nou partaz nou lintansion, akoz nou santi nou oblize rann kont lor nou progre, ena plis sans nou pou arive.
Explik to kamarad to bann proze, dir zot to ti pou apresie zot lankourazman pou resi arive. Petet, zot ousi partaz zot plan progre pou 2022. Ti pou mari serye, ansam zot progrese.
Olie dir “non sori mo pa kav sorti zordi”, propoz enn alternativ. Swap enn dine dan enn posh resto, met enn ti plan boulet kouma lepok lekol/uni, olie sware drinks after work tap enn Pearona glase lor laplaz. Ou bien met enn zoli plan hiking pou weekend? Li gratis!
Si to kamarad pa konpran, be nou tou kone, se bann-la ki perdan. »
Nawsheen, 41 an : « Mo kamarad aste bizou sak lane pou so bann zanfan so laniverser. Eski enn bon lide aste bizou olie ena kas dan labank?”
« Nawsheen, diversifie nou investisman li enn bon lide. Kan nou aste enn bizou, fode pa bliye nou pey pou mendev bizoutie ek materio. Si ou pe aste enn bizou pou mark enn levennman, felisitasion. Selma si ou plan vande dan le futur ou kase reranz bizou la, pena okenn garanti ki pri ou pou gagne akoz sa depann valer materio-la sa ler-la. Ou kapav gagne lor valer lor la, me perdi lor kou mendev. Pa koze si voler pase, enn lot traka! Avan pran enn desizion, demann ou kifer ou pe pans aste bizou. Si se pou garanti lavenir ou zanfan, ki lot zafer eski ou kapav fer apart gard kas dan labank? Si ou kontan lor larzan, eski ou’nn chek labours? Ena bann opsion pou investi dan commodities funds. »
Send your money questions and suggestions to anoukozkass@gmail.com or @mauritiusmoneyandme.
Disclaimer – Information in this column is general in nature and does not take into consideration your personal financial situation. It is for educational purposes only and does not constitute financial advice. Before making financial decisions, consider seeking independent financial advice tailored to your individual needs.
[1] UNESCO Institute for Statistics 2018
[2] Standard & Poor’s Global Financial Literacy Survey 2014
[3] Seegoolam H 2022, ‘The Bank of Mauritius launches its Financial Literacy Strategy’. Bank of Mauritius