FINANCIAL literacy is defined as the ability to understand and utilise financial skills and concepts to make informed money decisions. It can assist people to avoid poor financial decisions, become self-sufficient and achieve financial stability. It also helps in the management of financial resources to ensure maximum returns on investments.
The importance of financial literacy was stressed by President Dr. Mohamed Irfaan Ali during his recent address at the opening ceremony of GuyExpo. The President encouraged Guyanese to invest wisely, with a view to ensuring that they get the best value for their money.
As noted by President Ali, there is a distinction between resource distribution and wealth creation. According to the President, while the distribution of cash grants can help citizens, the government does not intend to stop there, and will continue to provide more support to build lasting wealth.
“This is an important part of what we want to do. For individuals, this means deciding whether to prioritise spending on goods or to allocate the funds towards investments that yield returns like education, property or business ventures that compound value over time,” President Ali said.
As observed by President Ali, it is not about just having the resources, but having a mindset to use those resources creatively and productively. This is true, both at the individual level and at the level of the government. It is essentially a case of increasing the national pie through the creative application of wealth to generate more wealth. Indeed, there is a dialectical relationship between wealth creation and the ability to enhance the material and cultural well-being of citizens. As the national pie grows, more will be available for distribution to the population as a whole.
This is why there is a need for prudent financial management and fiscal discipline. There has to be the right balance between recurrent expenditures and public sector investments, especially in the critical areas of infrastructural development and social capital. This is vital to ensure sustainable development and the creation of a robust and resilient economy.
In this regard, full credit must be given to the PPP/C administration for striking the right balance between public sector investment programmes and recurrent expenditures. This has found expression in the meteoric rise in per capita incomes, and a phenomenal increase in the size of the Guyana economy. Much of this is attributable to the emerging oil-and-gas sub-sectors, but that in no way detracts from the prudent management of the country’s resources by the PPP/C administration.
Guyana is undoubtedly experiencing one of its best moments from a developmental perspective. Development is about people and the satisfaction of their economic and spiritual well-being to the full limit of the country’s economic potential. From all indications, the PPP/C administration is very much on course to creatively manage the country’s wealth to satisfy the economic and social needs of the Guyanese people.