 Why 254, imagine? Victor is saying good morning Ram, enjoying the discussion today. Looking forward to having more of such because many youths do not know how financial literacy affects them in the early years. Have a blessed day. Thank you so much. A blessed to you too, my brother. Alright, so Kilian, let's touch on other issues. Financial literacy cannot be achieved when someone has loans. Correct. On the break you said that it's one sign of financial literacy. Let's talk about that, loans and how it affects youths. Now what happens is that many people take loans for consumption. That means for youths. At the end of the day, you are struggling to repay the loan. What should be the purpose of a loan? For investment. Take a loan to invest, not to consume. Correct. Because when you invest, the investment will repaying the loan. And your finances will not be stretched. Your finances will still be free because the repayment of the loan is coming from the investment or the purpose for which you are used to the loan. Including financing of the interest. So in that case your finances will not be overstretched. But you realize that most of us, especially young people, we are in a hurry just because of this issue of not leaving to impress others. You take a loan, you borrow heavily so as to finance your own personal consumption. Which I would also like to approach it from another theory that is used in finance or in economics. The life cycle model of consumption. Which basically states that people based their spending decisions around their permanent income. Then they expect to get over their entire life cycle. And this model simply says that when people are still very young like the people we are addressing now are below 25. This is the age where people consume heavily. It is good for them to know that. This is the age where people consume heavily. Including taking a loan to consume, not to invest. So they should be wary of this. Because at this time most of them are not responsible. They don't have any families. They don't have any dependents. And because of that they live a life of wastefulness. So to avoid that it is important for them to realize that when life begins to catch up with them in the middle age. They will look back with a lot of regret at what they had that they never made good use of. So it is very very important for them to begin understanding that this is the time that they waste a lot of their potential. A lot of their financial potential. So to avoid wasting that this is the time for them to begin saving. And I know that somebody who has just received the text from that loan up. Yes. Dear customer. Yes. I don't know how they normally write it. Yes. But I guess it could be dear customer, please pay a loan of X, Y, Z. Correct. Or we inform so and so. Yes. I don't know if they write or we inform. I don't know if they write that. Some of them do. Oh they write? Okay. Yes, some of them do. So what normally happens is that just like we were saying. People are always trying to stretch beyond their means. Yeah. So I take this loan. I take this loan. I take this loan. You find this people taking multiple loans from different ups. And we are looking at this young man. Correct. Kampas. Correct. And wants to take the girlfriend out. Correct. And decides to take a mobile up loan. Correct. Muna chikunga pesyangapi. You come up. Correct. I'm sure the camera operators are laughing. Muna chikunga pesyangapi. Ten thousand, thirty thousand. I don't know why you take your girlfriends out. But is that okay? And it is not okay because you know this loan the moment you get in. It is very difficult to get out if not impossible because they will give you that ten thousand. Actually they begin with a lower figure. Then the day you refund, you know you are life without any money. And you realize that they can give you money again instantly. They start with two thousand. Correct. Is somewhat wrong. Yes. Then this two thousand you refund, they tell you take three thousand. So it goes like that by the time you realize you reach thirty thousand. The interest you paid is more than that thirty thousand. By the time you are reaching thirty thousand. Yes. Yes. The interest you paid is more than that what? That amount. And then you end up being stuck there because now you cannot repay this amount. And other areas of your financial planning is affected by this one loan. Kama's life is difficult. Correct. For some. It is difficult for some. But in this aspect of loans, most people who take loans are compass kids. Correct. That is true. Compass kids. I want us to address this lot of kids. Correct. And find out how to ambient me. Taking a loan to take your girlfriend out. Taking a loan to pay for someone else's rent. Correct. Because last time I squeezed it. Sure. Very true. Taking a loan to pay for someone else's makeup. Yes. Taking a loan to pay for someone else's transport. Yes. I say, oh babe. Nataka kunda shule. Nataka kufanya hi. See now. Oh sawa. You know I love you. There is this phone I saw. Yes. Yes. There is this phone I saw. Yes. And she has an iPhone. Correct. And you yourself you don't have one. That kabambi. Correct. Muli kawmizi. Yes. What I want to tell these people. Number one. The way we began. Live within your means. I hope they are hearing me. Live within your means. That is number one. Number two. You don't have to. If you are in Compass. It's just four years. And then you will get out of it. So why should you mess up with your future potential? Because of what you are going. The way you are going to do things in just four years time. So think about it. That when you are doing something like financial planning. You think long term. When you are talking about your personal goals. Because financial planning or financial literacy. Is geared to your own personal goals. Because these personal goals have financial implications. In every aspect of your life. And you think beyond Compass. You think beyond five, four years. You think long term. Think beyond your nose. Yeah. Think beyond your nose. And avoid these unnecessary things. That will put you in a trouble. Now Kiliun. Yes. How can somebody avoid overspending? Overspending. A very big problem for many youths. Number one. And the obvious one. Have a budget. Budgets. Have a budget. And a budget by definition. A financial plan that is made prior to the period for which it is intended. Be financially literate and have a budget. Correct. Have a budget before that time. And then follow it. Use it. Follow it to the letter. Once you have money before you spend it. Correct. Sit down with the pen and paper. And if possible come a sabuningumu calculator. Correct. Calculator. Actually I have seen some people and I really. I smile when you are in a supermarket. But smiling but I know these people are doing a good thing. You see someone walking with a piece of paper. With a trolley. And a calculator. And a calculator. Yes. When they are doing their shopping in a supermarket. My sister likes doing that. Yes. Your sister is good. Are you sure? That she make a gizimika. She takes my phone. Yes. What do you want? A calculator. I used to ask her. You don't know how to just add this and this and this. Kumbes is trying to limit her expenses. Correct. When you reach there the till you pay within your means. You know what you are paying. Do you know that most people walk into a supermarket in the list. Which they never follow. You step in. You know those of us that strategically put next to the door. The moment you see the first offer you pick. You forget about your list. Then you begin picking things arbitrarily. Yes. When you reach there the till when you are paying. When you are reaching for your pocket. That is when you hear some piece of paper in your pocket. And you are like. You end up buying everything that you had never gone to buy. Things you did not need. Yes. So those are some of the things that we can avoid by having a budget. Write a list. Correct. Have a shopping list. Correct. It doesn't make you weak. It doesn't make you weak. It makes you strong actually. Have a budget. Yes. Go to the supermarket with it and follow it to the letter. Correct. The moment you step in that supermarket. The first thing you should reach for is your list. I forgot to add this in the list. Correct. Should you add that? When you are there. When you are there. You can add when you are there. Remember we said that you have a budget. Even before coming with this list. Yes. There was already a budget. If whatever you had forgotten to put there is within your budget. Within that budget. You can just go ahead and add it. I want you to talk to and hear. What was the problem that you were talking about? Let us solve this problem. Yes. They work in town and the first thing they see on the display that they like. Even though they were going for a meeting somewhere. They love to go into that shop. Yes. And buy it. Yes. Here, what do they call it? Impulse buying? Impulse buying correct? Impulse buying. That is a sign of financial illiteracy, that impulse buying, because when you are buying on impulse, you are buying not because you need it. When you are buying on impulse, you are buying something that is appealing to only your emotions, but not something that you need, or something that is going to appeal to your immediate ones. So you are supposed to, even that time you are writing a budget, you are writing a budget based on your immediate needs, not based on your emotional impulses. Because this thing that you see and then you walk in, you know the person who has put it strategically there knows at the moment you see it you will walk in. Because you know most people... It's a trap. It's a trap, correct. It is a big big big trap that makes people to go beyond their means. And that is the time you will begin calling so and so. I wanted to do this, but oh there is this emergency in quotes, because you already spent your money on things that you never needed in the first place. Let's avoid impulse buying. Correct. I was looking for that analogy. Impulse buying. A problem for many, I don't know if men have that problem also. Mostly ladies, but some men also have that problem. Some men have that problem. But it cuts across the gender divide. Even though it is more prominent in one gender. But it cuts across the divide. I want to fight. I want to fight. In the middle of the night you just wake up and say ah, I want this. At 2 am you want a chocolate anyway. I want us to talk to the parent skillion. I am looking at this parent who is thinking about the future of their child. We have young couples watching today. They have a child 2, 3 years, 5, 4, 6 years of age. How can parents ensure that they have a safe financial future for their child? And here I am looking at wanting to have a child that is financially literate. Who can be able to sustain themselves as they grow up? Let's talk to the parents now. The first thing that I will tell the parents is that they need to walk the talk that is number one. Because the best way of training a child is by showing them what you've done as a parent. My son, I want you to do this, but look at what I have done. I remember when I was growing up in the village. My dad would tell me that this is my level of education. He would tell you. But yours must be better than mine. That is what he would tell me. And I actually look back very proudly because I achieved that. He would tell me that this is where I have reached. But yours needs to be much higher than mine. In the same way when you are sitting down with your children as a parent, it motivates them if they are seeing something tangible that you have done from your own financial planning, from your own achievements. So the first thing that a parent should do is sit down with your children, talk to them about their future plans. And as you talk to them about their future, tell them that this one I did long before you were born. Is there anything in your house back in the village that was done long before you were born and you can still see it today? Yeah. Those are the things that will motivate people that if my dad or my mom did this before I was born, it means I can also begin doing things at a very early age. You don't have to wait because you know when you wait, there is something here that I needed to talk about earlier, the motivation to come from within. Don't wait for circumstances to push you to financial literacy. Correct. Because when circumstances are pushing you, it will not be successful. But if the motivation to do it is coming from within, it becomes very successful. So before life gives you a hard slap on the back, make an intentional decision to be financially literate, make intentional financial decisions and plan that is correctly put. So that is what I want to talk to the parents outside there. If you are still very young, you can do something that your children will see and motivate them and say that yes, my parents did this and I want to do better than that. Talk to them about planning. Talk to them about their future. Talk to them about the need to save. Begin to put in calculating some traits that you know will make them to be responsible citizens. I'm wondering. Is there a certain age that a parent should consider and say that okay, now my child is old enough to have discussions concerning money? Because most parents will be like, no, ajakuwa mkuba acha agun kubabado. That is where we go wrong. That age of ajakuwa mkubabado, that is the age we should start. Because you know most things that stick here for long or for good, those things that you were told when you were still very innocent, they will stick here for good. So even though someone may still be very young, just start talking to them about it, they will not be getting the concept but it will get here. I'm sure there are certain things that you were told when you were still very young, you were not seeing the sense by then and you ignored. And when you were fully grown up, you remembered. And at least you have a point of reference that I used to be told this, kumbe it was true. Even though I did not understand it then, but now I understand it. So it's good to begin early. Because the more you wait, they say that you cannot bend a tree when it's already fully grown. You start bending it when it's still young, flexible and it can go any shape and direction that you want it to meet. So I'm looking at these parents who are asking themselves how can I make my child to be financially literate? Ni haze VP. Do I start with that 10 shillings? So that 100 shillings? Correct. Let's be basic. Correct. What is the language? You can start with that 50 shillings, right? You give it to your child and you tell them, you tell this child that I want to see this being 100 shillings after 2 years, for example. Okay. I want to see this being that after this. You talk about what you want the child to do, the how of doing it, you live open for the child. Is it okay to be given children money? I know some parents hate these things because I've been to places, even in church. You are in church and some child you don't know comes to you nipatie pesa. You know, parents will be like, kum tuta me le love baya. There is this foggy idea about it. Is it okay to be given children money? You are talking about financial literacy? Like what I mentioned, in the context in which you are putting it, it's not right to give out money. In the context at which I am putting it. Correct. It's not right. I was saying that you give your children money and you mentioned something that I want this to grow into this. I want you to think of what you will do with this. Right? I am giving you this today because I want you to become a responsible person in the future. So see what you can do with this. See how you can multiply it. So they can do that through either saving, you give them today this money and if they get some money tomorrow they can save again. So you should give them ideas on how they can be able to do it. And even the young people who are watching me outside there, the more responsible you become, the more you will continue getting from the source you have received. Because that source is kindly watching how you are using whatever you are giving. So the more you use it responsibly, the more you will continue being given. Not that when you go to Mepewa Pesa, you are going to change. Correct. You are going to change when you are at home and you are going to give out money. See if you are going to give out money then you are going to give out money. See how it will change. Is that financial literacy there? Yes. Yes. So it's also a way of gaining the trust and confidence of the source where the funds are coming from. So that is what parents should do with their children. Sit down, talk about with them on what they are supposed to be doing. Yes, it is good for people to go for white color jobs. But do you know that most of these things that people ignore, they bring quick income even more than white color jobs, the so-called investments. Yes. They bring income within a very short period of time. They bring a lot of profits. Now, I want us to talk about couples, financial literacy for couples. Yes. And here my brother Kilion, I know you've handled such cases. Correct. People come for financial advice. Correct. A couple ask this question and a couple may ask, should I have my own financial plan, savings plan and my partner, should they have their own savings plan? Should we have different accounts? We are talking about financial literacy. Correct. Right? Yes. I believe this is a place. Correct. It plays a big role. How can couples ensure that they are financially literate even as they work in cohesion? Yes. I like the way you put your hands like this. Kapus are like this. Yes. Right? They are one. And because of that, they are supposed to plan together. You know what makes those problems to work for my brother when I'm dating, I'm a young man and I'm dating. There is a tendency of living by impressing the lady. I want to create an impression that I'm very rich. Yes. So I go and borrow those things privately to come and impress her. And so she makes a decision to come and tie the knot with me. While in reality my financial status is very what? Very low. So the moment you begin living together the reality comes in. So to avoid all those things, number one, be open to each other about your finances. That is the starting point. Be open to each what? Each other. The moment you have been open to each other about your finances, then plan together. Sit down. By the time you are drawing that list, don't draw it like I saw someone drawing a list somewhere. This is real. And passing to another person who was sitting with a piece of paper, taking and putting an X. Whatever has been ticked has been approved. Whatever has been put on X has been what? Rejected. Rejected. You get that? So I didn't see that being that nice in a family setting. You were supposed to sit down together? Of course it was happening because the income was coming from one source. Not that you have this list where each person does their own expenses. If we do our own personal expenses, what about the family expenses? Because personal expenses and family expenses are not the same. You get that? What about family? What about family? There will be a conflict somewhere. Why don't we put our personal expenses, for example, in the family budgets? See it can work out? Family budgets, not individual budgets. In the family budgets we can do that. So that after we put them there we break down and now you take us for your personal expenses. I take mine for my personal expenses. It brings a lot of financial discipline by the way. Because I know how much you have you will not waste it. You also know how much I have. Some don't know. And some men say you don't give a woman your mind. Don't let her know your mind. And they say she should not know how much you earn atakudarao kama wanahume. Is that right? Everything has got its own pros and cons. When someone does not know how much you earn there is always a tendency to believe that you have it all. Yet you don't. But for good couple or family financial literacy you should know how much both of you work together budget together spend together within your means. Because you already know where your means is. Yes. Wow. I want to wrap this conversion up. There are so many questions that I want to ask you. But because of the interest of time what would be your final word concerning financial literacy to Kenyans watching you today? I want you to speak to them directly one on one. That is your camera there. I want to tell the Kenyans watching me that we are living in very hard economic times and we all understand this. And so please don't be wasteful on what you have. Begin by understanding where you want to go and when you want to get there. Plan for it and the decision to save after once it begins now. That is what I can tell you now. Wow. Thank you so much. I appreciate your presence today. And there are so many things you have not covered. Maybe we will find time again and talk about this. Because we have books. Do books play a role when it comes to financial literacy? Reading books. Listening to podcasts on finances and videos on social media. Do they also play a role? Do they visit a financial coach or professionals who play a role? They do. They play a role. Yeah, they play a role. Especially depending on the type that you are watching. How can someone reach out to you if they want to get a hold of you? They can reach out to me on my number. 0733 588206 0733 588206 0725 528412 0733 588206 0725 528412 0733 588206 0733 588206 0733 588206 I can reach anytime and I will be available to offer the requisite advice. But only for available on social media. I am available on the social media. You can find me on LinkedIn. My name is Kilio Namolo. You can find me on Instagram. You can find me on Facebook. I don't use those funny names. Thank you so much for coming. You are most welcome. I appreciate your presence. You need to learn this financial literacy. Thank you. You need to learn this. Very, very important. Thank you. Even as they grow for couples and I'm glad that you've managed to shed light on all these things. A big thanks to Kilio Namolo. He is a lecturer and a financial consultant. He is at KCA University. I'm sure your students must be proud today. Oh sure. Thank you. Mugengi ma kofi. I don't know where they are from. Wherever they are. Well, that is the end of this discussion on why in the morning. My name is Ram Maguko. It has been a pleasure being with you today. We are taking a short break but we'll be back with more right here on why in the morning. Thank you.