In Ghana, many people do not understand the financial principles of life. While some spend their monies lavishly because they live on paycheck to paycheck; others, who have a budget sometimes overspend too.
It is for this reason that on this edition of BizTech on GhanaWeb TV, we learn about financial literacy.
Being financially literate is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing.
In an interview with GhanaWeb's Ernestina Serwaa Asante on the BizTech programme, the two financial experts who were the guests on the show, noted that acquiring these financial skills will help individuals know how to deal with money and create wealth.
Touching on generational wealth creation, the two financial experts said people needed to have multiple streams of income to fetch them some more money aside from what they earn as paychecks from their jobs.
"We are living in a generation where many people are just limited to a job. To have a job is a great thing but if that’s all your income is coming from, then there’s a problem. The limitation is that you are only exchanging your time and effort for money so there’s a limit to the amount of money that you can make because it is only 24 hours in a day," the life coach said.
"The other limitation to just having a job is that if you die, you cannot pass your job on to your children. When you die, your employer will be putting up a post however hardworking you are, there would be a job advert out straight away so the way in which you can create generational wealth is you have to create an income where you can actually leverage other people, systems and make money while you sleep," he added.
The financial coach while contributing to this topic noted that generational wealth could be generated from owning a property.
"There are things that you can do online such as forex trading but the profits that goes into forex trading can go into an estate," he stated.
