17 Mar 2014 13:20pm
GOBABIS, 17 MAR (NAMPA) The Minister of Finance, Saara Kuugongelwa-Amadhila has implored Namibians to do everything possible to live within their means, as unnecessary spending could be detrimental to their financial standing.
Kuugongelwa-Amadhila made the remarks in a speech delivered on her behalf by Omaheke Regional Governor, Festus Ueitele on Saturday as part of the launch of the Financial Literacy Initiative (FLI) in the Omaheke Region.
The finance minister said Namibians are often lured by credit terms that appear more flexible or affordable than cash payments, which in the end leaves them saddled with debt.
As such, she said, it is vital to plan diligently on how to spend household finances to avoid excessive borrowing and credit terms purchases.
We should try to live within our means by planning our finances carefully and buying only the things that are vital to our survival. Over-spending is a financial hazard that leads us into a debt trap which we may find too difficult to break free from in the end, she said.
The finance minister used the opportunity to emphasise the importance of a savings culture amongst Namibians as the only way to avoid being entangled in a debt trap.
She said maintaining such a culture will be of great benefit to Namibians as it will help them avoid paying too much for commodities, as is the case when goods are bought on credit.
The FLI, which falls under the Ministry of Finance, aims to empower communities to take ownership of their finances.
It is launched under the campaign slogan Be Wise - Spend Wise, Budget Wise and Save Wise. The initiative is a national platform to enhance financial education for individuals and micro-, small- and medium-sized enterprises.
More than 30 platform partners from the Namibian public, private and civil society sector strive to address the needs in the area of financial literacy and consumer protection in a coordinated effort.
Besides financial literacy materials highlighting vital aspects of the campaign, various Road Shows were undertaken throughout the Omaheke Region over the course of last week as part of the campaign.