SPEECH FOR FINANCIAL LITERACY MONTH 2008

Fellow Anguillians,  ~~Adz:Right~~

The Eastern Caribbean Currency Union member governments have for the last seven years designated the month of October as Financial Literacy Month. It is a time when the Eastern Caribbean Central Bank in collaboration with commercial banks, other financial institutions, Ministries of Finance, Ministries of Education and media houses in our region implement initiatives aimed at preparing citizens to make the type of financial decisions that can result in not only an improvement in their quality of life but eventually the stability of the Union as a whole.

The thinking behind this initiative is that by teaching the basic elements of financial management to individuals and families we can develop a strong culture of responsibility in financial matters. This year, the theme for the month is “Manage Your Money … Live Your Dreams”.  The focus is developing a culture of financial prudence in the member states of the Currency Union through a series of activities planned to highlight the importance of healthy money management practices.   The ultimate aim is to condition our citizens to the critical importance of cultivating both the day to day skills that can lead to proper debt management and savings strategies as well as techniques which can lead to the achievement of long-term personal and family goals such as acquiring a home; financing higher education and preparing for retirement.

As I continue to stress every year when I launch the program of activities for Financial Literacy Month “the way we manage our money can impact both the way we live today and the quality of our life tomorrow”.  And it also points to the need for individuals and families to pay close attention to their spending, saving and investment patterns, or lack thereof, to ensure that they get the best long term benefits from their earnings.

We are all at sometime guilty of being excessive in our spending and occasionally tardy in the handling of out commitments.  While there will be times when we may feel the need to indulge ourselves we should always do so in the context of a calculated decision and fully conscious of our priorities.

Clearly if we do not take responsibility for our financial life the other aspects of our life can be negatively impacted.  Fortunately, the reverse is also true --- if we make the right financial choices then our life circumstances can be positively improved.

It therefore behooves both families and individuals to cultivate positive financial management habits and practices with a view to ensuring that the quality of their lives is enhanced.

Financial literacy month 2008 contemplates a series of public education programmes spearheaded by the ECCB in collaboration with the Ministries of Finance and the Ministries of Education of each member territory; the Eastern Caribbean Securities Exchange  as well as other  financial institutions based in the Currency Union, the media and other entities in the public and private sectors.

While programmes may vary from territory to territory the broad categories will include:

• Visits to Schools and work sites throughout the month of October by representatives of financial institutions to engage persons in discussions on money management issues.

• Presentations on Savings and Investments at PTA meetings and teachers’ workshops.

• A Financial Exhibition and Discussions on the Theme at the Public Library. This will be open to children ages five to fifteen.  We believe that in order to effect long term changes, the correct mindset must be created from an early age.

• There will also be a Financial Literacy Schools Artwork Contest, which is intended to reinforce the message.  Anguillian students at the primary and secondary level are invited to submit original works of art embodying the theme.

• Financial tips, as a guide to practicing money management will be published on the air and in the print media. Given their importance in many member states of the Currency Union of these tips will be done in English, Spanish and Creole.

• There will be Radio and Television discussion on money matters.

• And there will be a number of financial articles published throughout the currency.       ~~Adz:Right~~

It would be extremely important if all Anguillians could “listen out” for the dates and times of these activities and seek to participate in the discussions, read the articles or listen to the programmes.

From casual observation of the people around us we may see the stark contrast between those who are good money managers and those who are less diligent with their finances. We may also note that it is not so important how much one makes but rather how one manages what one makes.

The higher wage earner may have more flexibility in his spending but if he goes beyond his/her budgetary limitations he/she can be just as “out-of pocket” as the lower wage earner. In addition you may observe that there are some people who seem to accomplish a great deal on a small income and others earning much more are unable meet their basic commitments and obligations.     

The topics and panel discussions to be presented this month as last year will speak to not only to the issues of financial success but also to the success of personal relationships. The truth is that having the wherewithal to support ones family can be critical to harmony and peace within the household and to the realization of dreams.

Very often bad business decisions, careless spending habits, unwise investments and poor money management skills can lead to serious financial challenges for the entire family. In many of these cases the head of the household and in some cases the entire family can lose their self esteem and begin a downward spiral in many aspects of their lives.
Dreams are thus shattered and hopelessness and despair manifests itself myriad ways. 
 
Historically, Anguillians have been characterized as being very thrifty. As a matter of fact we were considered the most thrifty people in this sub-region to the extent that it used to be said, humorously of course, that “an Anguillian can save twenty-five cents out of every shilling”.  I can also recall the basic lessons we were taught as youngsters about “making do with what we have or can afford”. Or the sayings “ a little with contentment goes a long way” ……  “don’t hang your hat where your hand can’t reach” ……..  “A penny saved is a penny gained,” or   …… “If you take care of the pennies the dollars will take care of themselves”. All these sayings spoke to the principles of good money management and prudent practices for the management of ones financial resources.  In a word --- guaranteeing that we create the environment for the realization our dreams and by extension those of our families. 

Today with the pressures of consumerism and keeping up with the latest fads and fashions including the “Joneses” ……. we sometimes have a tendency to overextend ourselves or live often way beyond our means. While we should continue to be ambitious and aspire to the best that life has to offer we must be prepared to make the adjustments which can lead to the realization of those dreams and aspirations. In many cases, the fact that we overextend ourselves may not necessarily relate to the amount of our income but to the inefficient management of that income.

The theme for this Financial Literacy Month:  “Manage Your Money … Live Your Dreams” is not a new one. It is the same message that our forebears instilled in us with simple proverbs and other gentle admonitions. The ECCB as the guardian of our currency union is simply guiding us back to those basic principles which enabled our ancestors to weather the storms of drought, famine and hard times to secure a future for us.  That future can only be sustained by continuing to be wise and smart in the management of our financial resources. Sound money management is a key part of that wisdom.

In the current situation globally, the rising cost of oil, goods and services, the financial crisis facing neighbours in the United States characterized by the fall of longstanding financial institutions and the sharp fall in the Stock markets it is even more urgent that we begin to pay more attention to these tried and proven practices of managing our finances.  Anguilla is not immune from the effects of these global realities.  There is a saying that “when America sneezes the region catches a cold”.   The import of this metaphor requires that we must be even more conscious of the global context in making decisions about money matters.  

The Government of Anguilla is pleased to be associated with Financial Literacy Month and invites all non-government organizations, the private sector and community groups to partner with the ECCB in this campaign. I take this opportunity to declare this Financial Literacy Month 2008 open --- and to hopefully set the stage for the creation of an environment conducive to cultivating and inculcating those tested practices of sound financial management among Anguillians thereby ensuring the enhancement of the life experience here in Anguilla as well as the lives of our brothers and sisters in the wider Currency Union.  We can all live our dreams if we equip ourselves with these skills --- and better yet we can ensure a great legacy of prosperity if we expose our children to these positive practices now.       

It is with great pleasure that I declare the start of Financial Literacy Month, 2008.  I thank you all very much for your kind attention.