Remember adolescents, youth in clamour for financial inclusion

This month, the world is marking Global Money Week (GMW), the annual celebration that seeks to highlight the importance of promoting financial health among young people. Coincidentally, the campaign also commemorates its 10th anniversary this month, continuing to reaffirm its decade-long clarion call that it is never too early to set about building financial reserves - even at an early age -  for a better future.

The commitment bodes well with the prevailing call to stakeholders across sectors to deliberately rump up efforts towards full inclusion, particularly for vulnerable groups that include the youth, women, and persons with disability. The move is largely motivated by the fact that full inclusion demands an optimal, equal, and independent participation of every demographic group in the financial system along established national and global development blueprints.

The ambition to have children and the youth accommodated in the inclusion agenda is inspiringly commendable, and could not have come at a better time, considering the challenges the Covid-19 pandemic has visited upon economies the world over. Since 2020, when the pandemic set in, there has been a discernible strain on the business environment. Locally, Covid-19’s net effect has been dwindling disposable and investment incomes, accompanied by significantly reduced business activity; drivers that have collectively inhibited the attainment of earlier growth projections.

Although we cannot yet say with full certainty that we are out of the pandemic era, it is sufficiently clear that most world economies are tilting towards a semblance of post-pandemic recovery. Hitherto subdued sectors such as tourism and hospitability now face a promising recovery, gaining a fresh lease of life in Kenya, particularly on account of the recent further relaxation of Covid-related containment measures.

Amid efforts to anchor and strengthen recovery, lessons gleaned from the Covid-19 disruption demand a fresh look at opportunities that have probably been overlooked in the past. For while the pandemic has foisted a decline upon the global economy, it has also revealed opportunities that can be tapped into through innovative solutions to infuse growth. In such opportunities, innovation remains a key ingredient, potentially aiding strategies towards harnessing and unleashing the potential of youth-led, women-owned enterprises and SMEs.

In Kenya, the youth constitute an invaluable cog towards spurring growth. According to the 2019 Population and Housing Census, 75 per cent of Kenya’s population is under the age of 35. However, with low access to opportunities and a high level of unemployment, young people are not optimally participating in the national economic development agenda.

It is, therefore, instructive to impress upon young people the need to make wise financial decisions early in life. Policy interventions also hold a great promise with regard to playing a faciliatory role.

I am convinced that instilling financial literacy in adolescents and the youth can ingrain important skills that will ultimately prove invaluable in their transition into adulthood. It is an ingredient that should be considered for inclusion in the mainstream education system, especially within the unfolding Competency-Based Curriculum (CBC). Exposing young people, especially those in high school, between the age of 13 and 17 years, to good financial habits early can play an instructive role in enabling them to mature into financially responsible citizens.

Granted, there has been notable progress in the financial inclusion of young people. However, there is a gap about serving adolescents between the age of 13 and 17 years. This is a significant age group, vulnerable and at a stage that adult support is critical in helping them navigate the complexities of life. It is a fabulous opportunity to impart positive skills, behaviours, and attitudes, especially on money.

Generally, adolescents experience limited access to independent financial tools, have low control over money they get and lack relevant personalised offers. It is, therefore, instructive for stakeholders to collaborate towards providing this age group with the support structures and tools that will help accelerate their financial inclusion in a timely manner.

A growing number of initiatives around the world are demonstrating that contrary to conventional belief, even poor and vulnerable youth can accumulate savings and assets—when the right tools and interventions are available. Developing cost-effective products and delivery systems to serve adolescent youth, more so those from low-income populations, remains a key opportunity towards harnessing the youths’ full potential.

For low-income young people in developing countries such as Kenya, savings can be a springboard to a better future. Research has shown that giving young people the tools to accumulate savings not only opens economic opportunities, but also affects their attitudes and behaviours in positive ways. Savings can help young people fund future education or start small businesses. They can also improve self-esteem and future orientation, which can, in turn, help them make positive choices about schooling and health. Such choices affect young people’s lives for years to come.

Happy Global Money Week!