Central Bank teaches public how to protect themselves from fraud, overspending

The Central Bank is determined to help people protect themselves from fraud, overspending and to be better prepared for retirement with its National Financial Literacy Programme (NFLP).

The programme which helps people effectively use financial skills, including personal financial management, budgeting, and investing was launched on April 14. The Central Bank premiered a special feature video – Financial Literacy for All – on Thursday on its YouTube page.

Central Bank governor Dr Alvin Hillaire urged people to make use of the bank's services to properly protect themselves.

He said money is more than the physical bill as there are online transactions, ATMs and the future of currency – cyber-currency. He said these are all complex components of personal finances as they can affect earning power, savings, retirement and investment.

“You can’t take things for granted because if you do you can be subjected fraud or you would be missing out on a whole set of opportunities,” said Hillaire.

Dominic Stoddard, the financial services ombudsman, said these activities are aimed at improving the skills of people to make better financial decisions.

He added the Central Bank has completed its third financial literacy survey. They found that a significant amount of the population has low financial capabilities, makes avoidable financial mistakes and do not plan adequately for retirement.

Nicole Crooks, the Central Bank's senior human resource manager, said the programme is year-round commitment to the importance of financial literacy. She encouraged people to take advantage of these programmes and the activities the bank is offering.

The special feature stressed the importance of financial literacy as these skills can help people be better prepared for emergencies – medical bills, emergency car maintenance or home repairs.

It said, “Financial literacy gives you the confidence to take control of your financial future and make more informed decisions about saving, investing and spending your money in ways that will help you achieve your financial goals.”

It said that people are not formerly taught of the importance of financial literacy and it can lead to pitfalls such as overspending, borrowing more than you can afford and accruing debt.

Olympic athlete Jereem Richards, musical artistes Andre “Viking Ding Dong” Houlder and Devon “Lyrikal” Martin and Elizabeth Montano endorsed the message.

Montano said, “When we started in business over 40 years ago, we had to search for information on financial literacy, now, with the NFLP, this information is easily accessible. Everyone should take part.”

The Central Bank also hosted a Financial Literacy Awareness Challenge April 17 to 19, a three-day Be Smart with Money series – Budgeting, Managing and Debt and Investing, and on Monday people can look out for the launch of new online resources – Budget Buddy/Budget Tracker and Money World Activity Sheets. There is also a feature for children where they can learn financial literacy with the help of games at the programme’s website at www.nflp.org.tt.