Minimum Wage Earners
Poverty has become a growing concern in Namibia and although the country has been classified as a middle-income country, huge income disparities still exist. A big majority of Namibians earn minimum wages and struggle on an every day basis to make ends meet, especially as life is increasingly becoming more expensive. Minimum wage earners find themselves in a financially difficult position, often trapped in debt and poverty.
Financial literacy is not only crucial in providing consumers with skills in budgeting, investing and better spending, but it also plays an important role in poverty reduction. Minimum wage earners are constantly challenged with identifying affordable financial products, understanding how they work, and to decode complicated financial terminologies. They are also more at risk to losing their money to fraudulent activities.
The road to financial freedom and out of poverty requires the development of good financial habits, practice and discipline. Financial literacy is also about being able to say no, and about learning to live within your means. This is not easy, and it doesn’t happen overnight.
With this in mind, FLI is partnering with organisations working with minimum wage earners to join forces in effectively delivering financial education programs.