Financial Literacy: Key Lessons from CPA Philip Ogutu

Financial literacy is an essential life skill that empowers you to make informed financial decisions. While it’s a skill you can learn at any age, the earlier you master it, the better.

At our recent training, we hosted CPA Philip Ogutu who gave an insightful presentation on financial literacy to graduates of St. Aloysius.

I’m excited to share the key points from his talk with you so that you can manage your finances better and flourish in other facets of your life. 

So, what is financial literacy?

Financial literacy is all about understanding basic financial skills and concepts. When you’re financially literate, you have the knowledge and confidence to make more rewarding decisions about your money.

This means you can:

  • Responsibly manage your funds/income
  • Make informed decisions on borrowing
  • Allocate funds for savings
  • Plan and invest for your future

Components of financial literacy

Philip highlighted five critical components of financial literacy that you should know:

Income:

Your income constitutes more than just your salary. It includes all the avenues through which you get money.  Know the amount you take home after taxes and other deductions like medical insurance and pension plans. Knowing the source of your cash; salaries, side-hustles, et cetera is key to managing your finances.

CPA Philip Ogutu talking different income sources and how to manage them



Spending:

Spending your money wisely helps you maintain proper financial health. To spend wisely, prioritise your needs over wants. This way, you know what you can spend on and in what order/priority.

“Make conscious spending decisions to avoid unnecessary debt,” Philip advises.

Everybody knows how to spend, but the right way to spend should involve drawing up a budget and following it.

A budget is a plan you write down to help you decide how to spend your money each month. And when you make it a habit, you will easily track your expenses to know where your money goes.

A budget doesn’t necessarily reduce your spending, but it will show you where your money goes so that in case you’re overspending, you know where to adjust. 

The 50/20/30 budget rule

Philip suggests the 50/20/30 budget rule, where 50% of your net income should go to needs, 20% to savings, and 30% to wants.

Understand the difference between needs (like food, education, and shelter) and wants (like entertainment and designer items). Tracking your spending helps you to live within your means. 

Save and invest:

Saving is one of the most essential ways to prepare for your financial future, and you should develop a saving habit early.

As a student, you can start with small investments and seek advice from financial professionals to build a diverse portfolio when the big money begins to pour in. 

Protect (Emergency Fund):

An emergency fund covers unexpected expenses, so you don’t fall into debt during unforeseen circumstances. Insurance is also a major component of protecting your finances, but it shouldn’t replace your emergency fund budget.

Always have an allocation for unforeseen expenses so that you don’t go back to your savings whenever a need you didn’t plan for arises. 

Borrow 

Kenyans are good at borrowing, which explains why mobile lending firms thrive here. However, if you must borrow, do so responsibly. Many people borrow money for the wrong reasons, and it costs them in the end.

Before you take a loan, understand the terms of any loan and ensure you can repay it without jeopardizing your financial stability. Avoid borrowing haphazardly because it can get your name into the wrong books with CRB, and limit your future borrowing chances. 

Philip addresses questions from the audience as Joseph looks on.

How can you earn an income as a student?


As a student, you can earn income through part-time jobs, freelancing, and internships. Part-time jobs fit your schedule and provide work experience. Freelancing lets you offer skills like tutoring, graphic design, or writing for a flexible income. Paid internships are great for income and enhance your resume and professional network.


Being in college requires money, and if you don’t have an alternative way to make money, you’re left to depend on your parents and the little loan you get from HELB. You can do so much as a student to earn, but consider your values, and engage in hustles that build you.

Students do quite a lot to stay afloat. Some buy and resell stuff, others earn commissions from selling other people’s products, while others sell their talents.

Find what works for you, but ensure you have a way to make a little money on the side while studying because you’ll need it. 

How can you spend wisely as a student?


Philip threw the question to the audience and they had wonderful suggestions on how they will be spending wisely in college. From cutting expenses to reducing party budgets, the audience shared wise spending ideas they will employ while in college.


After the suggestions from the audience, Philip shared how important it is to isolate needs from wants so that you spend only on what’s necessary. He also emphasized the need to budget, track expenses, and live with one’s means. 

How can you save and invest wisely as a student?

You can save and invest wisely as a student. Begin by opening a savings account and making regular deposits. This helps you build a habit of saving and provides a secure place for your money. Once you open a savings account, be intentional about saving; however little.

It’s more important to create and observe a saving habit.

On investments, start small and seek advice from financial professionals to help you build a diverse portfolio. 

Mr. Osimbo, an alumnus of St.Als gives a vote of thanks before praying to signal the end of the session.

Importance of financial literacy for you as a college student

Financial literacy is essential for college students today as they face financial burdens that previous generations didn’t like rising education costs and decreasing incomes. Thus, money management is a much-needed skill for survival in college and beyond.

Understanding basic financial skills and concepts prepares you for a successful financial future. Everything you do as an adult—earning money, budgeting, paying off debt, saving—relies on financial literacy.

Being financially literate makes it easier for you to live a more fulfilling life with the money you get. 

Conclusion

Financial literacy is essential for you. You don’t have to take a professional course to master it enough to manage your finances well. Start by downloading financial management apps and get in the habit of saving, investing, and managing your finances well.

These 3 Platforms Offer Remote Work Opportunities for Kenyans

Remote work has become increasingly popular after COVID-19. The pandemic forced companies to create alternative ways to keep the work going during the lockdowns. Looking back, remote work is the silver lining in the dark clouds of that period.

Today, many professionals prefer the flexibility of remote work to working from the office. With remote work, you get the job done from anywhere, spend time with your loved ones, and enjoy the mental reprieve of avoiding commuting every morning.  If you are interested in remote work opportunities in Kenya, explore these three sites.

Oh, and when I say, remote work in Kenya, I mean the platforms available to Kenyans, not necessarily owned by Kenyans.

1. We Work Remotely

I have this as no.1 for a reason. We Work Remotely vets the employers on this site thoroughly to ensure the jobs are legit and worth your time. To weed out scams, employers must pay $299 to list their jobs on the site. 

Employers pay handsomely to post remote jobs on this platform.

From coders, creative designers, and customer service champs to marketing managers, there’s something for everyone. Their range is broad! 

Navigating the site is a breeze too, you can sift through listings by category and by using specific keywords in the search bar to narrow down your search specifics real quick!

2. Workingnomads.com 

This platform simplifies your job search. It offers a range of remote opportunities in various industries—from software development to graphic design, marketing, and customer support.

They’ve streamlined the process, ensuring that each job listing is genuine and of high quality. Plus, they provide multiple payment methods like direct bank transfers and paypal.

3. Remote.co

Remote. co is also a great platform to find remote work.  The interface is clean and easy to navigate. You can look for any role; be it design, social media management, data entry, and even healthcare roles. This platform will connect you with reputable companies that offer flexible work. 

I love their clean interface.

What sets Remote.co apart is its commitment to authenticity and quality. Each job listing undergoes a rigorous vetting process to ensure you’re only presented with legitimate remote jobs from trusted employers.

Tips for optimising your remote job search

Searching for remote job opportunities can be tough when you don’t know how to do the search right. Here are tips to help you optimize your remote job search:

  1. Identify your niche: Find your unique skill set and focus on positions that align with your expertise. This will help you stand out from the competition and increase your chances of finding remote work that matches your skills and interests.
  1. Polish your online presence: Update your online profiles and showcase your skills and experience. Employers often search for candidates online, so having a strong online presence can make a positive impression.
  2. Customize your applications: Tailor your resume and cover letter to each job application. Highlight relevant skills and experiences that make you a strong candidate for the specific remote job position you’re applying for. Don’t send generic CVs.

Remote work vs. freelance work sites

Most people looking for remote work get surprised when they get the jobs and it feels like it takes more of their time that they apportioned, and it comes as a surprise. They think remote jobs are freelance-like; comes with freedom and few touchpoints.

This’s true to some degree, but a freelancer’s more independent. Most companies offering remote work treat you as their employee. You don’t get the autonomy of a freelancer. You’ll be working according to company hours, and this’s essential for their goals as it improves collaborations. On the light side, you get employee benefits, like health insurance, on-job training, and equipment support. 


While as a freelancer you’re trading your craft as a business, remote work isn’t your business, and so your work is strictly informed by company timelines.

Get the difference? I thought you should know.

This’s why I haven’t listed popular freelance sites like Fiverr or Upwork here. 

In conclusion, remote work offer you flexibility and convenience. And Kenyans are reaping huge on these platforms, and you too can! Set yourself up; your payment details, your social profiles, and spruce up your CV. There are opportunities for you beyond the borders.