Youth, money, and the power of knowledge

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OPINION

By David Wandera

Benjamin Franklin, one of the founding fathers of the United States, once said, “An investment in knowledge pays the best interest.”

This timeless truth reminds us that acquiring and nurturing knowledge yields the most valuable and enduring returns, surpassing any other form of investment.

The “interest” gained from such an investment is not merely financial; it encompasses personal growth, sharper critical thinking, expanded opportunities, stronger problem-solving abilities, and enriched life experiences, all of which can never be taken away.

Robert Toru Kiyosaki, the American businessman and author of the Rich Dad Poor Dad series, once noted, “We were not taught financial literacy in school. It takes a lot of work and time to change your thinking and to become financially literate.”

Uganda remains a youthful nation. According to the 2024 Uganda Bureau of Statistics (UBOS) census report, 50.5% of the population is children aged 17 and below, while youth aged 18–30 make up 22.7%. This means nearly three-quarters of Ugandans are under 30, a clear signal that the country’s future economic resilience depends largely on how well young people are equipped to make informed financial decisions.

In my nearly two decades of experience, I have observed how everyday challenges such as the lure of instant gratification or the pressure of maintaining flashy lifestyles can affect young people’s financial stability later in life. I am passionate about financial literacy because I believe everyone deserves access to the right information to make better financial choices and build secure, fulfilling lives.

Financial planning must begin early. Learning to save, budget, and invest wisely forms the foundation of financial well-being. Managing day-to-day expenses, living within one’s means, and adhering to a personal budget are essential habits for financial soundness.

Equally important is planning and saving adequately for retirement, while avoiding excessive debt that can lead to financial distress such as bankruptcy, default, or foreclosure.

To promote financial literacy, various online resources are now available. Building on this, Absa Bank Uganda recently entered a three-year partnership with Junior Achievement Uganda (JAU) to deliver a financial literacy and entrepreneurship programme that will empower more than 25,000 learners aged up to 25 years with practical skills for sustainable livelihoods and the future world of work.

This initiative aligns with Absa Group’s long-standing collaboration with Junior Achievement International, through which the bank has championed youth-focused education, entrepreneurship, and financial literacy programmes across Africa.

Financial literacy enables individuals to manage spending, saving, borrowing, and planning for key life goals, from paying school fees and running a business effectively to reducing vulnerability to fraud. It also empowers young people to make informed decisions about managing money, investments, and long-term financial plans, fostering self-reliance and financial independence.

With these skills, the youth can set and pursue long-term goals such as saving for retirement or acquiring a home, while building wealth through smart saving and investment.

In essence, financial literacy empowers young people to make informed financial decisions, navigate an increasingly complex financial environment, and contribute meaningfully to their personal well-being and the development of society at large.

The writer is the Managing Director of Absa Bank Uganda