Akweley Laryea
Numerous Ghanaian households find themselves just one crisis short of economic difficulty. Despite this reality, many individuals lack funds set aside for unexpected expenses. Without an emergency fund, families frequently resort to unanticipated loans merely to manage daily needs, ultimately facing steep interest rates that reduce their long-term earnings.
The head of retail banking at First National Bank, Akweley Laryea, claims that numerous households might prevent such circumstances through greater openness regarding financial matters.
“It goes beyond simply managing expenses; it involves building a common comprehension and strategy for your family’s financial matters. It begins with open discussions regarding each individual’s income, outstanding obligations, concerns, and future goals,” she explains.
However, such discussions aren’t always straightforward. Some individuals are raised in environments where financial matters were never talked about, while others may have anxieties related to borrowing money. “It’s quite typical for one partner to take on most of the responsibility while the other completely steers clear of the subject,” explains Akwelely. “This lack of communication frequently causes misunderstandings or suspicion, particularly during emergencies when there isn’t an established agreement between both parties.”
She suggests reserving consistent time, even as infrequent as once a month, for a financial review to establish a family budget and collectively determine how you will manage savings, expenses, and unexpected situations.
Akweley added that these types of crises often cause numerous families difficulty. “Many individuals have fewer than six months’ worth of funds set aside for unexpected situations, and some have completely none saved up. This makes you very exposed when dealing with an unforeseen expense and lacking financial reserves.”
She highlights that establishing an emergency fund is the top priority when developing financial stability. “Saving as little as GHS200 or GHS500 each month regularly can have a significant impact. In the long run, strive to accumulate enough to cover at least three months’ worth of necessary costs and continue increasing from there.” The key is forming a consistent saving routine, so begin with any sum that you find easy to set aside every month without interruption.
She also suggests maintaining an emergency fund in a distinct account that is easily accessible yet separated from daily expenses. “For instance, First National Bank’s Savings Pocket connected to your checking account is an effective method for saving during emergencies since it prevents impulsive buying.”
After establishing an emergency fund, couples can begin focusing more earnestly on other financial objectives, such as setting aside funds for education expenses, a vehicle down payment, or retirement. It’s important here to grasp various time frames. “The key is matching the right product to your specific goal,” explains Akweley. “For instance, a family planning for holiday expenses in December shouldn’t lock that money into a five-year investment; instead, they could use a shorter-to-midterm investment option with flexibility, like a Flexi-Fixed account or a 32-day Interest Plus plan. For longer-term plans, taking on slightly higher risk through one of First National Bank’s Fixed Deposit accounts may lead to greater returns. However, many individuals confuse these approaches, resulting in either insufficient savings or premature withdrawal from long-term investments, often leading to extra penalties.”
“This goes beyond safeguarding your finances; it involves eliminating a significant cause of disagreement within your relationship. Crises are challenging enough without adding concerns about covering their costs—thus, some preparation and a solid financial teamwork can make a big difference,” summarizes Akwelely.
Source: First National Bank
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Financial Talks with Your Partner: Build Savings and Steer Clear of Debt
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