FabAfriq Magazine

With Wages Growing Again, It’s Time To Secure The Future

Following three years of decline, wages across the African continent are starting to grow again. Brookings Institute figures show an average 1.3% rise in wages, Egypt and Nigeria excluded, for a net change of +4.3% from the previous year’s drop of -3%. With more money in pockets, it will be all too easy for newly comfortable citizens to splurge; as a result, developing sensible financial skills should be the focus.


Understanding credit 

With improved earnings has come greater access to credit. This is generally good news, as it will allow businesses and individuals to find that extra cash they need to provide impetus. However, unfettered lending has serious consequences, as exemplified by the personal debt issue bubbling under in Kenya. To avoid predatory and unsuitable lending, become comfortable with what credit is and how it works. Personal loans may be superior to credit cards for certain types of spending, and will always be superior to loan sharks. Similarly, the freedom of credit cards can be beneficial for everyday spending. Thus, it's important to establish your own priorities and fit your credit to them.

Improving literacy

The knowledge of how to handle credit goes hand in hand with general financial literacy. Woefully under-taught in schools, financial literacy imparts on students the skills they need to understand and traverse the financial lessons thrown at them by life.


Money improves access to these lessons, though there are countless schemes popping up across Africa seeking to improve literacy. According to financial literacy advocates JA-Africa, there are countless schemes of this ilk popping up all over Africa.

Not settling

Even as wages continue to rise, it remains that Africans earn just a fraction of what average earners around the world take home. To tackle this, it’s most important that Africans in every country are confident in demanding wages that match their skills and give them a proper foundation on which to support themselves.

As more skills are gained and better employment developed, it’s imperative that the lifestyles and actions of professionals everywhere are maintained and developed towards furthering careers and making life better for everyone.

Economic boosts are the start of a cycle, not the end. With people taking more cash in their pocket, it’s an invaluable opportunity across the African continent to secure the financial future of families all over. Take steps today to cement your financial skills and make tomorrow prosperous.


 

 

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