Money Month Reaches 700,991 As Financial Literacy Gaps Persist

RETHABILE MOHONO

MASERU-The Money Month Lesotho campaign reached 700,991 people this year, but organisers say significant gaps in financial literacy remain, particularly in investment, insurance, credit, retirement planning and digital finance.

The campaign, held under the theme “Smart Money Talks”, was launched on April 9 in Mafeteng and officially wrapped up at Lehakoe on Tuesday.

Presenting a comprehensive report on the campaign, Ephraim Moremoholo of the Central Bank of Lesotho (CBL) described Money Month as a cooperative initiative involving various organisations within the financial sector.

He said financial literacy should not be treated as a once-off activity, but as a continuous journey covering financial education, capability, inclusion, stability and well-being.

“Financial literacy is a journey, not a once-off event,” he said.

Moremoholo said there was also a need to start financial conversations with children, arguing that young people should understand basic financial responsibilities, including household bills, income and budgeting.

“There is a need to talk about money,”he said.

The campaign involved educating students and members of the public about financial services, budgeting and responsible money management, while also helping them understand how to identify fraud, money laundering and cybersecurity risks.

The campaign reached 3,642 members of the general public, 2,205 employees, 2,050 students and 730 out-of-school youth.

19 schools participated, comprising 51% high schools and 49% primary schools. Of the 730 out-of-school youth reached, 350 were engaged through soccer activities.

The campaign used print media, broadcasting, digital platforms and physical outreach to reach its audiences.

Digital platforms accounted for 677,517 people reached, while Facebook reached 14,847 people. Video interviews reached 239,876 people, while photo content reached 126,628 people.

The strongest audience age group was between 25 and 34 years, while women accounted for 60% of the dominant gender segment.

However, the campaign’s findings showed that reaching people with information does not necessarily mean that they fully understand financial products and services.

In investment, Moremoholo said many people wanted to invest but did not know where to invest or understand the difference between an investment and a financial scheme.

Insurance was another area where knowledge gaps were identified.

The public was found to have greater familiarity with funeral cover than other insurance products, while there was also appreciation for agricultural financial products.

In microfinance, the campaign identified limited understanding of licensing requirements, microfinance products and contracts.

There was also a lack of understanding of the rights and responsibilities of financial consumers.

On credit, the campaign found that people had limited knowledge of how their credit card profiles could affect their credit scores.

Financial planning was also identified as a challenge, with some consumers reluctant to disclose information about their existing debt.

The report further highlighted over-indebtedness and a lack of emergency funds among consumers.

Insurance knowledge remained limited, particularly regarding different insurance products and policy conditions.

Retirement planning was another area of concern, with limited knowledge about pensions and retirement planning.

The banking sector also faced an information gap, with consumers having limited awareness of the range of banking and investment products available to them.

Digital finance was identified as another area requiring greater attention, with the campaign highlighting the need for increased confidence and training in the use of digital financial platforms.

Some consumers also expressed the view that mobile money fees were expensive.

The findings suggest that while financial education campaigns can reach large numbers of people, continued education is needed to help consumers understand and confidently use financial products and services in their daily lives.

On behalf of the financial sector, the Governor of the Central Bank of Lesotho, Dr Maluke Letete, highlighted the importance of open financial communication between spouses.

He encouraged couples to disclose loan commitments to each other to avoid misunderstandings and frustrations at home when it comes to money matters.

The Governor also reminded the public that it is important to involve children in discussions about family finances.

Speaking on behalf of the Mafeteng District Administrator; Rorisang Manka said money management brings peace to families, communities and ultimately the country.

He emphasised that a well-managed household is more likely to experience financial stability and peace.