Articles
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Congrats to Essay Winners
July 26 2010
The Caribbean Regional Technical Assistance Centre congratulates the winners of our Financial Literacy for the Caribbean Essay competition which was held in May 2010.
We wish to thank all participants for their entries. Below is the list of our winners and their essays
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Making Money with Food
July 26 2010
It’s been said that the way to a man’s heart is through his stomach. This saying certainly rings true for not just Jamaican men but women as well, as it is part of our culture to enjoy a good meal. Practically every month a food festival is held somewhere in the country, and people will travel far and wide to partake in the offerings.
With the universal love for eating out, it’s ironic that the restaurant business holds the dubious distinction of having a 90 per cent failure rate. Although researchers debunk this statistic as an urban myth, many persons are still wary of venturing into the food industry because of its varied challenges.
Despite the possible setbacks, there is nothing as satisfying as food preparation for those persons who are naturally talented in this area.
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Talk to Your Children about Money
July 15 2010
At what age is it appropriate to begin to teach kids about money? Is it at the pre-school stage, at the pre-teen or at the teenage stage?
The earlier the better if you ask me. From the time a child is able to count to ten and appreciate nursery rhymes and children’s stories, the time is right to talk about money. Talk about what things cost and the importance of choosing wisely when spending one’s money (choosing needs as opposed to wants) since one would not have all the money to be able to buy everything.
Certainly, the discussion would have to be age-appropriate, so parents should begin with simple concepts for young children and then deepen the conversation as children get older.
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Media Release: Parents Must Step Up
June 09 2010
PARENTS IN THE CARIBBEAN must begin to teach their children to manage money from an earlier age to increase their chances of becoming financially responsible adults, advises a Caribbean economist.
Therese Turner-Jones, Programme Coordinator of the Caribbean Regional Technical Assistance Centre (CARTAC) made the comments today at the prize giving ceremony for the winners of CARTAC’s inaugural Schools’ Essay competition at the Grande Salle of the Central Bank.
“Parents across the region seem intent on teaching their children about the importance of making money by getting a job or an education. They must also create a balance by teaching their children how to spend wisely, save and invest, and how to delay gratification. They must step up to the plate now and lead by example,” Turner-Jones advised.
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HOW LIQUID ARE YOU?
June 02 2010
Liquidity is the measure of how quickly you can access cash when you need it without incurring a significant penalty. Note well that the issue is not about zero cost but rather a significant cost. Every decision has a cost even if that cost is the potential income lost if you were to drawdown on your savings i.e. (opportunity cost).
In the region there are many sayings that we would use to indicate a liquidity problem. These include:- “Things tight” or “I’m tight for cash”
- “things brown”
Or, you may refer to an individual as being asset rich, but cash poor. This underscores the point that liquidity is not a measure of one’s net worth but rather of one’s cash flow. You can have valuable assets but still be cash broke. Hence, if you are not liquid you are not financially free.
Let us classify liquid assets into two categories; those that are tangible and those that are intangible. Tangible assets include i.e. cash assets such as money in one’s wallet, savings and chequing accounts as well as near-cash assets which will include short term investments such as Treasury bills. -
How to Work Less and Earn More
May 30 2010
The only way to sustainably earn more in the 24 hours available in a day is to create an income stream that is not dependent on your personal, direct efforts to produce money. Money that you earn without physically working for it is called passive income. Creating a passive earning source will usually require a lot of hard work initially, but the satisfying end result will be a system that continues to earn while you sleep.
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Increase Your Savings Savvy!
May 21 2010
When Anthony was promoted to records supervisor in a local hospital he treated himself to an SUV, upgraded his wardrobe and partied more.
He deserved it! But over time his disposable income began to shrink. Dejected, he realised he was working harder but had little to show for his raise at each month-end.
Higher income, fewer savings Anthony’s situation is common, notes Elizabeth Austin, Head of the National Financial Literacy Programme (NFLP) of the Central Bank of Trinidad and Tobago: “We launched our programme in response to the observed deterioration of savings ratios among income earners despite a considerable increase in per capita gross domestic product (GDP),. In other words, higher incomes have been matched by little, if any increase in personal savings.”
Austin adds that there has also been a significant increase in personal debt including expensive credit card debt.
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Are You Tired of Being in Debt?
May 20 2010
“It’s the same story every month. I promise myself that I’m going to make a big dent in my credit card bill, yet within two weeks after payday, I’m forced to swipe the card to buy groceries. This month the car required major repairs and I just didn’t have the money to deal with it. It took me a long time to pay down $40,000JMD off my debt, but it disappeared in an instant after purchasing car parts. I’m sick and tired of owing this money; I feel like all I do is work hard to pay interest to the bank. When am I ever going to get rid of this debt?”
This heartfelt cry of a client who is stuck in a debt quicksand could easily have been echoed by thousands of concerned consumers who are similarly mired in a vicious cycle of borrowing to survive. Despite their strong desire to pay off their obligations, their financial reality makes it challenging to break free of the chains of debt.
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Building Wealth
May 10 2010
“Money will command your attention. Allow it a proper place in your life, but deny it a throne. Money means many things, but nothing so much as a yardstick by which our measure will be taken. The need of it, the use of it, the power of it, the love of it will be used by others to define who you are and who your are not..."
Even you may use it to determine how you should perceive yourself. Be careful: Money is also known to be a relentless slave master. If I have learned anything from this balancing act it is the importance of defining your worth in your own terms.”
-Sidney Poitier in Life Beyond Measure:
Letters to My Great-Granddaughter
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Developing Youth Entrepreneurship
April 30 2010
At a recent economic forum hosted by the Bethel Baptist Church in Kingston, a young man came forward to ask the panel of financial experts for tips on how he could be successful in his new business venture. As he made his passionate plea for guidance, I recalled the challenges of my first entrepreneurial effort at 23 years of age.
Today, with the lack of employment opportunities in Jamaica, many young people are forced to try to make an income for themselves. However, despite the emergence of several organisations designed to assist business development, thousands of young entrepreneurs still struggle to turn their inspirations into profitable ventures, and a large percentage of them will not be successful in their endeavours.
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Students to learn about money and win
April 12 2010
STUDENTS IN BARBADOS now have a fun way to learn about managing money and win some at the same time.
The Caribbean Regional Technical Assistance Centre (CARTAC) has launched an essay competition for school students between the ages of nine and 18 at all schools across Barbados including private schools.
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Steps to a Financially Secure Future
March 30 2010
Rather than waiting around for things to happen in your favor,get financially secure by making things happen. You can be financially secure and avoid going into financial ruin, by planning mindfully. Set aside funds each month for your retirement by starting a retirement fund. Also set aside funds to cover unexpected costs related to house repairs, health emergencies not covered by your insurance plan and other necessities you would have to pay out of pocket.
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School’s Essay Competition
March 26 2010
STUDENTS IN BARBADOS now have a fun way to learn about money AND win some at the same time!
The Caribbean Regional Technical Assistance Centre (CARTAC) has launched an essay competition for students age 9 - 18 as part of the Financially Fit public education programme.
The topic is: "You receive cash as a birthday gift from your favourite uncle or aunt. But you must use it wisely! Write an essay describing what you'd do with your money and why."
Prizes include bank accounts, laptops, book vouchers, websites and more!
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Guyana System of National Accounts Report
March 18 2010
A three-year project which began in 2007 to rebase Guyana’s National Accounts from 1988 to 2006 has been completed and compiled in a report entitled “Guyana System of National Accounts.”
The report which benefited from technical support by the Caribbean Regional Technical Assistance Centre (CARTAC), was officially launched at the Pegasus Hotel today by Minister of Finance Dr. Ashni Singh during a seminar for users to understand the scope of the National Accounts. -
Saving and Investment Course
February 24 2010
If you constantly find yourself needing credit to get you to the next payday, you are living beyond your means. Re-evaluate your budget and talk to your banker or someone else who can help you get your finances straight. Unless you pay your credit card bill in full each month, don’t use it for anything you can eat or wear.
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2010 Action Plan #3: Control Your Income
February 13 2010
It wouldn’t be hard to predict that it’s going to be more difficult to make money in 2010. Employees and entrepreneurs alike are experiencing a decline in their earning power due to pay reductions, job layoffs, and consumer spending cuts. Investors who had previously benefited from lucrative profits in the money market now have to cope with decreasing returns.
How can you survive when you are not earning enough? Let’s look at some of the typical challenges that people are facing today and offer some possible solutions to these problems:
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2010 Action Plan #2: Control Your Debt
February 12 2010
Your child’s tuition is three weeks overdue and you’re dreading another phone call from the school office... . Desperately looking for an answer, you notice a newspaper advertisement for a payroll loan. Convinced that this may be the answer to your problem, you call the financial company to get more details on the loan. You realise that you can access enough funds to not only pay the outstanding school fee, but to clear off your credit card and repay your cousin the money you borrowed eight months ago. In fact, you decide that you might as well take the opportunity to finally replace your worn living room sofa. Does this scenario sound painfully familiar? If so, you’re not alone.
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The Dawn of a New Decade
February 08 2010
On January 28, the ECCB Governor, Sir K. Dwight Venner engaged the ECCU public in an interactive discussion on the regional economy in 2009 and prospects for 2010. He noted that in spite of an approximate 7.4% contraction in economic activity in 2009 and the projection of a 2.4% contraction for 2010, the region and people must take charge of the situation and turn things around rather that allowing the projection to become a self-fulfilling prophesy.
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2010 Action Plan #1: Control Your Spending
February 04 2010
In recent times, while speaking to several persons about their money problems, I have detected a growing sense of desperation in their voices. Although many have not yet reached a stage of full-fledged panic, it is obvious that they are very worried about the current financial situation facing Jamaica.
“If I can’t make ends meet now,” a client asked perplexedly, “what’s going to happen to me when the full impact of the tax increases hits?”
I believe that good results can come out of every bad situation. The prevailing economic crisis has forced many of us to recognise that we can no longer be nonchalant or clueless about our financial condition. We have received a monetary wake-up call - it’s now time to take control of our finances!
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Financial Literacy Programme-Trinidad & Tobago
January 29 2010
The National Financial Literacy Programme (NFLP) of Trinidad and Tobago was launched on January 31, 2007.
If the key objectives of the programme were to be summarised in one sentence, it would be:
"to sensitise persons to the importance of making prudent and sensible decisions regarding the use of their money"
We, in Trinidad and Tobago, believe that we have been able to achieve this objective to a considerable degree. In fact, at the launch of our latest publications on October 27, 2009, Governor Ewart Williams indicated that, “There is no doubt that we have come a long way over 36 short months”.
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Opening Speech of Financial Literacy Project
January 22 2010
CARTAC’s Financially Fit website site has a special Caribbean flair which we hope the viewing and using public will find fresh, exciting as well as educational. It appeals especially to a younger population as we hope to influence their financial knowledge at an early stage. Noting also that a younger Caribbean audience spends relatively more time on electronic media, including the internet, than print, we are targeting facebook users as a special community.
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Five Little Changes with extraordinary Outcomes
January 20 2010
Money is usually earned monthly or weekly but it is spent daily. That being the case, it is the changes that we make to our daily financial planning that will have the greatest impact on our financial outcomes
Read more on Five Little Changes with extraordinary Outcomes
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Dare to Save Money Group
January 19 2010
Money is vital to everyday living. We spend years learning how to make it and we spend years making it; therefore, we owe it to ourselves to learn how to manage it.
The Dare to Save Money Group provides another forum for learning how to manage this vital tool that we spend so much of our lives pursuing. -
Take Your Financial Check Up Today!
January 08 2010
In Barbados and the wider Caribbean, we were never taught in any of our formal educational institutions how to prepare for being good stewards of the money we earn. However, we were taught very well what we need to have (a good education!) to earn that money. Well, as the saying goes (with a variation): “Any fool can make (earn) money but it takes a wise man to spend, save and invest it!”
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Budgeting Your Way to a Happy New Year!
January 04 2010
Melissa’s Christmas was fantastic!
She’d hosted a successful family luncheon and made up gift baskets and delivered them to quietly grateful patients at the local hospital. And she’d eaten and imbibed at a record number of festive parties. Yes, it was the best Christmas… ever!
Christmas is over… now what?
