Financial Education Module
Financial education has never been more important in today's environment. Participating effectively in the financial system can improve the economic wellbeing of individuals and businesses. Financial education is therefore key so that members of our society will benefit from the financial system and from the new technologies that are transforming our financial landscape. It will help consumers to better understand the risks involved in managing their finances and will facilitate better financial decision making. Building a generation with financial competence therefore needs to start from an early age. This has been the motivation of Bank Negara Malaysia in the development of AKPK to be the agency in providing financial education to adult consumers.
As part of the efforts to promote financial literacy and sound financial management by members of the public, AKPK has specially designed programmes targeted to all life stages starting from the young adults in tertiary education right up to the senior citizens in their retirement with the aim of empowering these groups to effectively manage their finances. This will in turn contribute towards promoting better protection for financial consumers and a more resilient household sector.
Youngsters are growing up in an increasingly complex world where they will eventually need to take charge of their own financial future. Financial education for the tertiary is for those between the ages 18 to 25 years old who are currently pursuing post-secondary education.
We nurture right skills while they are young to strengthen their base for their future financial management. This module will be focusing on cash flow management, the importance of budgeting and savings, internet banking and other suitable topics for students whilst in their tertiary education.
The Entering Workforce comprises of those between the ages of 20 to 30 years old, mainly those who have just started working. Financial Education is very important and critical to those in this age group as they are in the transition from dependent to independent roles in financial management. They would want to buy a car as soon as they start working and view this more of a want rather than a need.
Our Entering workforce module for them would be more to deliberate on fundamental terminology and importance of productive borrowings to enhance future net worth. Financial education is also to expose and cultivate the culture of managing the debts wisely. The module would also introduce the fundamentals of investment and the importance of insuring for protection.
The next life event module is for those who are in the midst of starting and raising a family. People in this category are approaching that time in their life where they will undergo many life milestones: marriage, children and a new home. This module is designed for those aged 30 to 40 years of age.
The focus would be on the action plans in settling loans taken and reducing debt commitments in order to prepare for retirement and, to accentuate again the importance of planning for uncertainties for self and family, to introduce the types of protection available and to understand the right kind of policies for family according to affordability. Emphasis is also given on accumulating suitable investments to provide passive income upon retirement.
The transition from a full-time work to complete retirement involves many difficult decisions regarding income needs in retirement, the management of retirement wealth, employer pensions, national retirement programs and whether ones plans to phase into retirement or abruptly exit the labour force. Several of these decisions are irreversible and have long term implications for economic well-being in retirement. In order to make the best choices, individuals need sufficient level of financial education and a detailed understanding of the characteristics of their retirement plans.
Therefore our pre-retirement module guides them to financially prepare for retirement by settling debts to increase savings for retirements, understand on planning the usage of the investments and maintain the policies and reviewing insurance portfolio.