If you could go back in time to your 20’s, what are some of the things you wish you had done differently?
I wish I had listened to my parents more, and worried less about peer pressure. I also wish I had been more disciplined with saving, and that I had chosen to buy less expensive items and saved the left-over funds.
Sounds Familiar?
Meet 20-year-old me.
The twenties were some of the best years of my life; I had my entire future ahead of me and felt ready to conquer the world. With a mini afro, my standard jeans and a white t-shirt, my priorities were simple and shaped by a mix of youthful energy and budding ambition. Evidently, my persona was a reflection of my values – practicality over fashion and frugality as a badge of honour.
Years later, having scaled the ranks to my current position (Head, Wealth and Retail Banking at Standard Chartered Bank Uganda), I look back and there are definitely things I wish I had done differently. I’m grateful for the mentors who talked to me about finances but must acknowledge that I could have done more. As a father, my wish for my children and other young people is to receive the extensive financial guidance I never had!
Take for instance Kevin, a graphic designer working at a reputable advertising agency in Kampala. A typical Generation-Z or Gen-Z as they are popularly called, Kevin is a digital native, having grown up with technology at his fingertips. The 26-year-old has on his smartphone, a banking app for international transactions, a crypto app and mobile money apps that enable him to transact conveniently and fast.
But like many other young people, Kevin is not yet fully financially included. According to Uganda’s National Financial Inclusion Strategy 2023-2028, while inclusion has grown significantly in the last few years, the overall figures mask significant inequalities across different population groups. Only 53% of youth have access to formal financial services. In addition, less than 1% of Uganda’s population uses any investment product.
“I am aware of a number of financial products on the market but am not using any of them”, Kevin confirms this.
So how can we help young people like Kevin to thrive financially? How can we make sure that young people can embark on their financial journey armed with the right information and resources? From my experience, and with the benefit of hindsight, here are a few more things I would have done differently, when it comes to personal finance, and that I would want young people to know:
It all starts with a plan
Things don’t always work out the way we imagine but being intentional helps. Visualise what you would like your life to be like ten, or twenty years from now. Have a plan and start now to work towards it. Without financial planning, you are likely to mismanage your money.
Knowledge is your greatest asset
Like many people in my generation, I lacked access to financial knowledge to help me make decisions about my money and about savings. But the situation is different now for young people. There is a wide variety of good information on personal finance. Read widely and benefit from such resources. Tap into your connectedness and access the internet to access personal finance information and services. Kevin, for instance, is interested in cryptocurrencies, stocks, and forex trading. If you’re like Kevin, then Standard Chartered Bank’s Offshore Mutual Funds could be just the thing for you. With just USD100 Kevin can securely invest in a range of asset classes globally and earn high returns.
Parents, teach your children and impart to them the wisdom of saving and investing early. Plant the seeds of financial literacy in their young minds. Remember, the legacy we leave behind is not in material possessions, but in the values we instil in our offspring.
Every coin counts
Most young people believe they need a lot of money to start investing. This is understandable, given that many have just left school, may not have the best-paying jobs and are struggling to balance financial needs such as rent, utilities or even taking a “special someone” out on a date. Discipline will be your greatest ally, by setting aside a small portion of your monthly earnings you enjoy the compounding effect on your investment and will unlock your goal in no time. With a monthly savings plan of just UGX 100,000 in our SC Shilingi funds, Kevin our tech-savvy designer will earn daily returns and will have saved an estimated UGX1,350,000 by the end of this year! Sounds simple right?
Time flies, so remember the best time to start investing was yesterday, the second-best time is today.
Diversification keeps the risk at bay
I always took the conventional route of investing, and it was only later in life that I discovered the range of options I had. Be bold, and take some risks beyond the typical choices – it could lead to some exciting opportunities.
Spend less than you earn!
There is no shame in living below your means, especially when you are just starting out in your career. Social media is crazy today, don’t be tempted to spend beyond your means on fancy cars, smartphones or splurging on vacations. The next time you’re tempted to spend money, like this, think of what you could do with that money if you saved and invested it. And later, when you have saved and invested, then you can always acquire these items.
Credit is a good thing if used wisely
I never took a loan until I was 30 years old, the thought of debt just never sat well with me. Leveraging borrowed money to fuel your investment is something you shouldn’t overlook. You would expand your pool and use some of your return to cover the debt. A 10-step head start in my book.
Ask for advice!
Reach out to financial experts to guide and educate you about various investment products and options available and their suitability. At Standard Chartered Bank, one of our key goals is to help more people access financial services. Our team of professionals will hold your hand and help you on your journey towards financial freedom.
Our in-house Investment Advisor Gorrettie Kigongo is available to help you plan and structure your investment plan today. Contact her on:
Mobile: 0784577292
Email:Gorrettie.Kigongo@sc.com
To all the 20-year-olds out there, remember these tips as you navigate a world of money and investments. Stay disciplined, explore new options and embrace smart financial decisions. Your story starts today!
Wishing you the best on your journey!
Yours Sincerely,
Paul (Someone who has been there before)