he MoneyMinded program aims to help participants by improving savings behaviour; moving away from ‘making ends meet’; coping with unexpected expenses; setting longer-term goals; informed financial decision-making.
MoneyMinded facilitators say “young people can benefit greatly from the program; [the] program is very valuable to our clients as they are of an age where this subject matter is very important as they enter into independent living”. 11.6 per cent of MoneyMinded participants in the last 12 months were young people.
“The program is current and handles the issues that are happening to young disengaged people rather well”.
According to the MoneyMinded report, the MoneyMinded program increased young people’s financial knowledge and confidence levels, encouraged them to save rather than spend and broadened their financial horizons.
The major focus of the MoneyMinded program is to equip individuals with the knowledge of “what to look for and where to access information about products and services when the need arises … reducing the likelihood of choosing inappropriate products and services that may be detrimental to a young person’s financial future”. This is particularly relevant when educating the young.
“No one had ever taught me how to manage my money before,” says Quy a MoneyMinded participant in Vietnam. Following the program Quy says he is a more financially confident and independent young man.
“Before MoneyMinded, I only had one bank account and spent the money in this account freely without checking what remained in the balance,” says Jun Wei, MoneyMinded participant in Singapore. “After MoneyMinded, I opened a second savings account and I now put half my salary into this account every month. I make a point not to touch my savings. MoneyMinded also inspired me to create a simple budget for myself using a spreadsheet.”
The MoneyMinded report found that the youth in many of the Asia Pacific countries - where the program was delivered - are the first generation to grow up in a monetised environment and have not therefore had the opportunity to learn money management skills from their parents.
According to the World Bank providing opportunities to youth to develop financial capabilities at an ideal ‘teachable moment’ such as when they enter the workforce will help to promote the financial health of their communities.
Jennifer Farmer - BlueNotes Editorial Producer.