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ECCB jointly with the Bankers Association of St. Lucia Presents the theme For FINANCIAL LITERACY MONTH – OCTOBER 2010 Make your dreams a reality, Save.

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Presentation on theme: "ECCB jointly with the Bankers Association of St. Lucia Presents the theme For FINANCIAL LITERACY MONTH – OCTOBER 2010 Make your dreams a reality, Save."— Presentation transcript:

1 ECCB jointly with the Bankers Association of St. Lucia Presents the theme For FINANCIAL LITERACY MONTH – OCTOBER 2010 Make your dreams a reality, Save and Invest wisely

2 History In 2002 the Eastern Caribbean Central Bank (ECCB) lobbied its eight member governments (Can you name them) to designate October as Financial Literacy Month, in recognition of the need to increase public understanding of financial matters. Since then Financial Literacy Month has been celebrated in October each year in the Eastern Caribbean Currency Union (ECCU). In 2009 the decision was taken to change the name to Financial Information Month (FIM). History of Financial Literacy Month

3 Objective Financial Information Month forms part of an ECCU financial literacy programme coordinated by the ECCB. The objective of the month is to begin the process of educating the region's citizens on the basics of personal financial management and consumer skills in order to set the framework for financially stable consumers of financial products and services. During the month the ECCB, in collaboration with financial institutions, the Ministries of Education and Finance and the media has in the past implemented several initiatives, aimed at preparing citizens to make the type of financial decisions that can result in an improvement in their quality of life. OBJECTIVE

4 Planned Activities & Programs Programs The activities and programs during the Financial Information Month 2010 will focus on Financial Planning and Goal Setting and Personal Financial and Business Success. These initiatives are expected to serve as a channel for the delivery of financial education programs in ECCU schools and wider communities, as institutions and groups rise to the challenge to bring financial information effectively to their constituencies. In St. Lucia all Radio, Television and Print media are commissioned to promote Literacy month, and both 1 st National Bank Ltd and Bank of St. Lucia has included this on their regular radio/tv programs.

5 ECCU countries Participating Countries The eight member countries of the Eastern Caribbean Currency Union participate in Financial Information Month. They are: Anguilla | Antigua and Barbuda | Commonwealth of Dominica | Grenada Montserrat | St Kitts and Nevis | Saint Lucia | St Vincent and the GrenadinesAnguillaAntigua and Barbuda Commonwealth of DominicaGrenada MontserratSt Kitts and NevisSaint LuciaSt Vincent and the Grenadines

6 MEMBERS OF THE BANKERS ASSOCIATION OF ST.LUCIA 1st National Bank St. Lucia Limited CIBC First Caribbean International Bank The Bank of Nova Scotia (Scotiabank) RBC Royal Bank of Canada RBTT Bank Caribbean Ltd Bank of St. Lucia Limited

7 What is a Central Bank? What is a Commercial Bank? What is a Central Bank? A reserve bank that is constituted by a governments or international organizations to issue and regulate currency, regulate banks under its jurisdiction by holding the reserve deposits of other banks in that country. It also either initiates or carries out the country's monetary policy, including keeping tabs on the money supply. act as a lender of last resort, and generally ensure a sustainable monetary policy.issuecurrencylender of last resortmonetary policy What is a Commercial Bank? A financial institution that accepts demand deposits and makes loans and provides other services for the public

8 We are asking that you Make your dream a reality, how can you do this? SAVE AND INVEST WISELY

9 SAVING Save - Savings should not be ad hoc or something you do when you have money left over. Rather savings should be the first expense deducted from your paycheck. You should be diligent about setting aside money from each paycheck towards your future. Practice depositing in a separate account at least 10% of your gross income and make sure you leave it alone.

10 Saving- 10 things you need to know! 1.Create a budget 2.Ready, set, Goal 3.Pay yourself first 4.Start pruning 5.Get to know your debt 6.Clamp down on Credit 7.Shop wisely 8.Pay your bills on time 9.Make extra Mortgage Payments 10.START NOW!!!!!!

11 What is Budgeting. The only practical way to get a hold of your spending and to make sure you are using your money wisely is to budget. It is not complicated, know what you actually make -your income and know where it all goes!!!!!! BUDGET

12 Budgeting : 10 things you need to know 1.Gather the facts 2.Create a worksheet 3.Fixed versus discretionary spending 4.Follow rules of thumb 5.Pay yourself first 6.Cut out the non-essentials 7.Pay more than the minimum 8.Save for a rainy day 9.Review and adjust 10.Build in a reward.

13 Set SMART short, medium and long term financial goals for yourself and your family. SMART is the acronym for (S=specific; M-measurable; A- attainable; R- realistic;T- time-based.) examples of SMART financial goals include: –I will own my home in five years by saving $200 per month towards the down-payment. –I will contribute 10% of my monthly income towards my retirement fund. –I will go to college in four years by saving 15% of my monthly salary for four years. INVESTMENTS

14 Invest in your retirement. Determination, hard work, a sound savings habit, the right knowledge and a comprehensive financial plan are the tools required to build your retirement nest egg. By watching your expenses and changing a few spending habits you can add to your nest egg every day. Do not wait until you are close to retirement to begin saving for your retirement. You are the architect of your financial future, so just as you would save towards college or a house, start saving towards your retirement fund. The earlier you start the greater the possibility that you would be able to afford your retirement. INVESTMENTS

15 Invest For Your Future - A person without money is a person without choices. To ensure that you have choices and money now and in the future it is important that you start building a nest egg for yourself. You are the architect of your financial future. Design your future financial plan and start building. Go shopping for investments. Even if you do not have the money, Window Shop. This would give you a good perspective on the issues that could shape your financial goals. Drive around the country and look for sale signs. Ask questions. Schedule an appointment with a real estate agent. Visit your bank and local treasury department to find out what investments are available. Log onto the ECSEs website: INVESTMENTS

16 Research thoroughly each potential investment opportunity. A family member or friends recommendation is not enough, no matter what their past experiences have been or how close you are with that friend or family member. And, even though a thousand persons may have invested in a particular investment product, it does not mean that it is a must-have for you. Investing intelligently is not about following the crowd or being fashionable. It is about determining what financial plan is right for you and then selecting investments that fit into your individual plans, considering your investment objectives, risk tolerance and your performance aspirations. Seek information from multiple sources and question information that refers to risk-free investments, guaranteed high returns, or once in a lifetime opportunities. Anything that sounds out of the norm should cause you to pause. If mainstream investments are offering 4-5% per annum, and a similar investment is promising 3% per month (this translates into 36% per annum) mental red flags should be raised, warning you that something may not be right. INVESTMENTS

17 VISIT THE CENTRAL BANK WEBSITE click here click here Financial Tips In keeping with the objective of Financial Information Month, October 2010, which seeks to raise awareness about the importance of budgeting, wise spending, saving and investing, we present to you these financial tips designed to empower you to stabilise, stimulate and strengthen your finances. Savings Tips Savings should be the first expense deducted from your paycheck. Budgeting Tips It's important to get expenses on paper. Yes, you must spend but it should be guided by a plan. Investing Tips Even if you do not have the money, window shop. Drive around the country and look for sale signs.

18 QUESTIONS


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