Money Matter

E Dey Pain You…?Talk.

FOREWORD BY: Kathleen Omamode Erhimu, aka Personal
Money Matter Guru
Hi There!,

I’m super excited you’ve made one of the best decisions of your life by
building your knowledge on Basic Financial Education.

Having spent over 27 years as a Banker and finance specialist, I am aware that
the earlier you learn the basic rules of how money works, the more confident
and financially successful you will be now and in the future.

The first step into the world of achieving self-actualization starts with
understanding Self and Basic Financial Education.

This manual aims to make it easier for you to achieve self-actualization

I hope you love it.

Founder/ GMD Kudimata Nig Ltd


Published by Kudimata Nig Ltd
14 Ibiyinka Salvador Street,
Off African Lane, Lekki Phase 1
Lagos, Nigeria.
© August 2023, 2023
Kudimata Nig Ltd
All rights reserved.
This book or any portion thereof may
not be reproduced or used in any
manner whatsoever without the express
written permission of the Publisher.
Acknowledgments:
Kudimata would like to take this
opportunity to thank Kathleen
Omamode Erhimu Founder of
Kudimata Nig Ltd for her passion in
promoting Basic Financial Education.
Kudimata Nig Ltd would also like to
thank the teachers and consultants
who guided the development of
Basic Financial Literacy and the
Chartered Institute of Bankers (CIBN),
National Institute of Training and
Development (NITAD) for their help and
guidance in the development of this
manual.
In addition, special
thanks to:
Evelyn Oputu, Olugbenga Oyebode,
Olaniran Olayinka, Dr. Oluwole
Ogundipe, and Lennox Emmanuel.
Design By:
Wawu Technology Ltd
Quality Mark By:
Kudimata Nig Ltd
®
How to Use
This Manual
Welcome to Basic Financial Literacy by Kudimata. This book will help you make informed choices
about managing your money, now and in the future.

There are six chapters on topics that are relevant to you. Each starts with a question, which the
information included in the chapter will help you answer.

In each chapter, you will find:

INFORMATION
The information icon highlights key and
useful information on the chapter topic.

DID YOU KNOW?

Look out for these icons, which will give
interesting facts on the subject area.

ACTIVITY
The pencil icon indicates there is an
activity for you to complete to help build
your knowledge and understanding of
the information you have read.

DISCUSSION
The discussions provide an opportunity
for to you to have a discussion about
the topic areas and give your opinions
on key information within the chapter.

CASE STUDY
The case studies let you examine real-
life situations in more detail and
decide what you think the best course
of action is.

QUESTIONS
You will find questions at the end of
each section. The questions are an
opportunity for you to apply the
knowledge you have gained through
reading the information and check
your understanding.
Graduating College: A
Whole New World
Congratulations! It is here finally after years of self-discovery,
sporadic sleeping patterns, and the pursuit of anything and everything that
interests you.
You have graduated. What next? Armed with a college degree and a blank
slate, your future awaits.
You are about to embark on a journey of infinite possibilities for exciting new
adventures (and challenges) like figuring out Where To Live, Why Money
Matters, How to Achieve My Goals and Dreams, (note: “calling Mom, Dad or
the Favourite Uncle” is no longer the answer) To help ensure you are prepared
for what’s ahead.

It is important to understand how your financial decisions today can impact

your opportunities today, tomorrow and the Future.

A Bright Future Awaits—Go Forth And Prosper

®
 SELF-AWARENESS

Let’s Review:
Where Exactly Are
You Starting From?
When standing at a crossroad of open-ended
possibilities, figuring out your next move can feel
overwhelming.

Self-awareness
Who Are You?
This chapter will help you explore and deepen your
understanding and appreciation of who you are as
a person.

You will explore how you see yourself through the lenses of personal
identity, your skills and talents, roles, values, personal core, and how
you meet your psychological needs. You will also examine how you
respond to the pressures of changes and transitions in your life.

By the end of the chapter, you will know and have an opportunity to
examine how your personal identity has been shaped by a variety of
people and experiences. You will also have the opportunities to think
about and discuss your values, interests, hopes for the future, as well
as, your strengths and challenges.

DID YOU KNOW?

There is no straight path from your seat today to where
you are going. Your career and your life will have starts
and stops and zigs and zags.
Don’t stress out about the white space—the path
you can’t draw—because therein lies both the surprises
and the opportunities.”
 SELF-AWARENESS

What Words
Describes Me?
Let’s make a Portrait of Yourself

➢ The best thing(s) I ever did was (were)

➢ I wish I could lose my fear of

➢ I know I have the talent to

➢ I enjoy people who

➢ I admire

➢ I feel most productive when

➢ I am motivated by

➢ I almost never

➢ My idea of fun is

➢ Work is exciting when

➢ The best advice I ever got was

➢ The thing I value most is

➢ If money were no object, I would

Reflect on your ANSWERS and how they impact your life

and relationships. This self-awareness lays the foundation
for personal growth.
 SELF-AWARENESS

What Forms Who

You Are?
Reflect on Possibilities

Master of Your
Own Destiny:
Where to
Personal Core
How would you
Learning
What have you
learned and
Drop Your
Next Pin?
describe
yourself in one what are you
sentence? hoping to learn?
Check the variables that
formed you.

Roles
Where have you
taken on
responsibilities in your
life?

Family History Values

Where have you What is really
come from? important to you?

Check the
variables Strengths Hopes for the Future
Where do you hope to
that
What skills and
talents do you be in 5-10 years?
have?

formed Interests

you.
What are you most interested in?
 SELF-AWARENESS

Setting Priorities About

Values
Values are beliefs, feelings, and principles that guide a person’s actions and
give those actions meaning.
Values
1. Money

2. Peace Of Mind

3. Happiness

4. Success

5. Nature

6. Spiritual Life

7. Friends

8. Taking On Challenges

9. Satisfaction With Work

10. Learning

11. Balancing Your Life (Work And Play)

12. Physical Health

Prepare a TWO-MINUTE SPEECH about yourself describing the essence of your personal
identity, “Who are you?”
You can choose to share a personal story or an interesting experience with your family
career, your goals and dreams.

QUESTIONS
➢ What was your experience reading through the
module?

➢ Was this difficult for you?

➢ What were your thoughts (self-talk) before and

during the module?

➢ What is your understanding of who you are?

➢ Do you have an idea of areas you need to
improve on?
 MOVING ON FROM SCHOOL TO THE WORLD OF WORK

Moving On From School

– The World Of Work
What Are The Big Financial Decisions I’ll
Need To Make?
In this chapter you’ll explore some of the financial matters and decisions
that you might face as you move on from full-time education.
These include understanding the ways that people get paid for work, the National Minimum Wage,
Youth entrepreneurship, financial implications and making plans in your journey to self-actualization.

NEXT STEPS AFTER SCHOOL

Three (3) major options available to you: DID YOU KNOW?
Learning a skill and developing an
entrepreneurial spirit is the new white collar job.
YOUTH APPRENTICESHIP
An apprenticeship combines practical training in a job
with study. As an apprentice you will:
▪ Work alongside experienced staff.

▪ Gain job-specific skills.

▪ Earn a wage and get holiday

pay.

▪ Get time for study related to your role

(usually on day a week).

Apprenticeships can take between 1

to 5 years to complete, depending
on their level (there are intermediate,
advanced, higher and degree level
apprenticeships).
 MOVING ON FROM SCHOOL TO THE WORLD OF WORK
ENTREPRENUERSHIP
Transforming an idea into a product or
service that has value to customers.
Each step in the process from creating the
business plan, implementing to achieving
it.
EMPLOYMENT
There is a wide range of work available for school
and University leavers. For those going straight
into work from school or college there is also a
National Minimum Wage.
Ways you can be paid
There are a number of ways people are
paid for the work that they do:
• Salary – A set amount of money paid
once a month. This is based upon an
agreed amount you would earn in one
year.
• Hourly rate – You are paid a set amount
for every hour you work. The more hours
you do, the more you are paid. This is
usually paid to you weekly or monthly.
• Commission – Often linked to a salary in sales
related jobs. For example, you may receive a
share of the sales you make. This is paid in
addition to a monthly salary.
QUESTIONS
1. Which types of employment
contracts provide the best
protection for Nigerian workers?
2. In your opinion, what are the benefits
and implications of working in the gig
economy?
The National Minimum Wage is exactly that – it’s
the minimum an employer can pay. Employers
can choose to pay more than this but must pay
at least the National Minimum Wage for the
age of person they employ. The amount paid
by employers is determined by a number of
factors, including:
• The level of responsibility within the
role.
• The skills required to do the role.
• The level of experience they are
looking for.
If you choose to work for yourself (be self-
employed) then the minimum wage does not
apply.
Different types of Employment Contracts
There are a number of different ways that you
can be employed in Nigeria. The most common
ones include:
▪ Full time – Usually provided with a contract of
employment and receive benefits such as
holiday pay, sick pay and pension
opportunities.
• Part time – Usually works fewer hours than a
full- time worker but receives the same
treatment and benefits (though these may
be proportionate to the number of hours
worked per week).
▪ Short term contract – This can be on a full or
part-time basis but is only for a fixed period of
time.
 SAVING

Saving
Is It Important For Me
To Save My Money?
In this chapter you will explore the reasons that people save money,
and how to compare the range of saving options available.

You’ll see how saving is an important way of reaching future financial goals,
and how individual choice is important in making those decisions.

By the end of the chapter, you will know what your main options are for saving your
money and be able to make comparisons between them.

You’ll be aware of some of the main features and perks that can come with savings
options, and how to take these into account in your decision making.

DID YOU KNOW?

There are 21 commercial banks, 860 microfinance
banks, 5 discount houses, 64 finance companies, and 5
development finance banks.

DISCUSSION
Think about the different reasons people
might have for saving money. Come up with
two examples for each of the reasons
above.

1. IDENTIFY WHAT YOU
ARE SAVING FOR
No one starts a long road trip
without a map of how they
are planning to get to their
destination. Saving is the same;
you need to have a clear
objective of what you are
saving for. When committing
to your savings plan you need
to write down each goal/
objective you have and the
amount you want to save as
well as a target date for
reaching your goal. You must
make these realistic so that
you can ensure your success.
Finance Write down Stay
journey goals focused
2. DETERMINE HOW MUCH YOU
CAN SAVE
You need to know what you earn, how
much you spend and what you are saving
so that you can determine how much you
can save. You might need to rein in
spending in order to save the required
amount.
Know your Know your Calculate Save
income expenses savings more
SAVING
3. CHOOSE THE APPROPRIATE
SOLUTIONS
There are many ways to save, you
need to research and find the
right one for you.
A financial advisor can help you
decide on which products or services
you should use. For short-term goals
you should focus on safety and
liquidity rather than growth. For
medium term goals you need to find
the right balance between growth
and liquidity. Long-term investments
are more risky but here you need to
focus on growth and leave your
money in your investment for many
years.
Long-term Medium-term Short-term Financial
goal: invest goal: growth goal: advisor
safety & liquidity & savings
plan
4. MAKE IT AUTOMATIC
As we have discussed, you need to make
savings automatic. If you get used to the
money not being in your account you won’t
miss it. So feed yourself first and take the
savings amount out of your account straight
away.
Automate Feed yourself Move money
savings first to savings
5. MONITOR YOUR PROGRESS
Take time out every month to review your
savings and see if you are meeting your goals.
If you aren’t you will need to review your
choices and maybe change your investment
options. If you are meeting them or exceeding
them then it will motivate you to continue.
30
Every Review Change Meeting goals
month savings investment will motivate
options if you
needed
3
 The id is the aspect of personality present at birth.
ACTIVITY
1. Olamide currently spends all of his
N5,000.00 pocket money every
week on a music streaming
subscription. There is currently an
offer to make a one-off payment of
N50,000.00 for a whole year of
streaming.
▪ How many weeks will it take
Olamide to save up the money
for the one-off payment?
▪ How much would Olamide save
over the year?
▪ Do you think it is worth the wait to
save up for the one-off payment?
▪ What might the disadvantages
be?
2. Nosa has saved up for a new
hair to buy on her birthday
although Christmas is in 5months.
She can buy it online now for
N25,000.00, plus N3,000.00
delivery and packaging, or she
can wait 3 months, save a bit
more and buy the Christmas
discounted price.
She can only spend the money
that She’s saved up once, so
needs to decide what to do.
▪ Identify the benefits and
implications of each option.
▪ In your opinion, should Nosa
delay buying the hair? What
would you do?
SAVING
WAYS TO SAVE
The simplest way to save is to put away at least
25% of your income where access may be
limited.
Income in your pocket, wallet, bag or table at
home is at risk of being spent, stolen or lost, and
it can be difficult to keep track of your spending.
That’s why many people choose to keep their
money in a safer place such as a bank or credit
union.
Having a Savings Plan can help you make
progress toward achieving your goals and
better handle
unexpected expenses when they come up.
Reasons for a Savings Plan
✓ Unexpected expenses and emergencies
✓ A bill you know will be due every few months.
✓ Annual expenses like rent, school fees &
supplies.
✓ Dreams of having a new Phone, car, house,
etc
DID YOU KNOW?
The lion eats first - ahead of the pack. You too
should ‘eat first’ by arranging an automatic
deduction from your income at the very start of the
month, before you spend anything.
QUESTIONS
1. What is the difference between
‘saving’ and ‘savings’?
2. List three benefits of having savings.
3. What might be the consequences
of not having a savings?
4. Give an example of delayed gratification.
 The id is the aspect of personality present at birth. SAVING

The Leopard Never Lets Its Prey

Out of Its Sight, Patiently
Planning and Moving Towards
Its Goal, Never Backing Off,
and Staying Focused.
‘Of course I have a goal for my future – I want a better life’

Does this sound like you? To succeed, you need more concrete goals
than this, and you need to back your goals with good plans.

What is your vision of your financial future?

Assignment:

Write down the goal you have to achieving your financial future.
Make sure your goals are S M A R T

▪ Make your financial goals vivid, inspiring, but also concrete and
achievable.
▪ Develop a plan to achieve your goals.
▪ Get the support you need from others to achieve your goals. Research
shows that you are much more likely to succeed if you can ask
someone to check in with you and encourage you from time to time.
▪ Do each of these steps, and you will be well on your way to achieving
your goals.
 SAVING

TYPES OF ACCOUNT
There are two main types of accounts which
can be opened at any bank.

• Current accounts. A current account is one

that allows unlimited inflows and outflows.
It’s flexible and can be accessed via
cheques, ATM cards, bank apps, and any
other method an account can be accessed.

The main thing that differentiates a current

account from a savings account is that for
current accounts, you pay the bank
TYPES OF BANKS
commission to operate the account. Whilst for
Savings accounts, the bank pays you Commercial Banks
interest as long as meet the withdrawal terms ▪ Provide loans to individuals,
and conditions businesses and government
organisations
▪ Accept deposits and money
Current accounts can be business accounts,
transfers from customers
individual accounts, joint accounts. What ▪ Transfer Funds
differentiates these accounts is how the entity ▪ Help in foreign exchange
that opens it decides to operate it and the transactions
peculiarities regarding who can access it, w ▪ Manage assets and liabilities
withdrawal limits, etc. ▪ Safekeeping of valuables, etc.

• Savings accounts. A savings account is one Microfinance Banks

that allows you to save money usually to be
used in the medium term. A savings account ▪ Provide loans to individuals,
businesses (SME’s )
gives modest interest rates on savings and can
▪ Accept deposits and money
be used to save for things like house rent, transfers from customers
school fees, building an emergency fund, etc. ▪ Transfer Funds
For most Nigerian banks, to earn the interest Mortgage Banks
rate promised on your savings account, you
need to limit withdrawals on that account ▪ Provide Housing loans
to about 2-3 times a month. This makes sense, ▪ Businesses (SME’s )
▪ Accept deposits and money
considering that the aim of the account is to
transfers from customers
help you save money towards a goal. ▪ Transfer Funds
Merchant Banks
▪ Corporate Counselling
▪ Project Counselling
▪ Capital Restructuring
Services
▪ Portfolio Management
▪ Issue Management
Do Not Trust a Financial Institution not
▪ Lease Finance
Licenced By Central Bank of Nigeria
▪ Venture Capital
(CBN)
 INVESTING

Investing:
Cut the Bull- the Bear
Basics of Investing?
If you thought investing was only for the super-wealthy, think again.

There are lots of ways that people at every asset level can start investing—as long
as they have sought out appropriate advice and understand the risks involved.
Remember, saving is a prerequisite to investing; make sure you have sufficient
savings to cover monthly living expenses as well as cash reserves available in
case of emergencies before you begin investing money in the markets.

DID YOU KNOW?

“Life is about balance.
The good and the bad.
The highs and the lows.
The piña and the colada.”.

DISCUSSION
Think about the different reasons people
might have for Investing. Come up with four
examples for each of the reasons above.
 INVESTING

Investing
On the surface, investing can be
intimidating According to a survey,
more than 62% of Millennials report
not learning about investing until
after college, and 25% waited until
after turning 30.

On top of that, investing can involve

an endless number of financial
buzzwords that tend to trigger the
snooze button before you can fully
comprehend what they mean Let’s
break down some of the
most important terms.

Saving
The act of putting money away in an account with
a relatively low interest rate; for example, a bank
account.

Cash and Cash Equivalents

Investing
The money you have saved in your checking
The act of putting money to work by committing
and savings accounts, as well as short-term,
financial capital (e.g., money) to an entity or a
low-risk investments like money market
financial product (i.e., a stock or bond) in order to
funds and certificates of deposit.
generate a potential profit.

Stock
Securities
A share of the value of a company that can be
Forms of ownership, such as stocks, that can be
bought, sold, or traded as an investment; this
traded on a market (meaning there are buyers and
ownership is also referred to as equity
sellers) and have a measurable monetary value.

Bond
Exchange
Essentially an IOU from the issuer to pay the
A central location where buyers and sellers can
bondholder a specific sum of money at specific
trade securities
intervals and to repay the principal amount of
the loan at maturity.
Investment Index.
A bond is also referred to as fixed income
A snapshot of the performance and value of a
certain selection of stocks It is usually computed
based on a weighted average of the individual
stock prices Investors use indices as a benchmark
to compare performance across categories and
industries
 INVESTING

Investing

Cash and cash equivalents

Low Risk
Generally, the money you hold in cash and cash equivalents
is meant to be the liquid part of your total assets (meaning if
you needed to access that money to pay for something
tomorrow, you could)

Bonds
Essentially an IOU, a
bond allows
investors to lend
money to
companies or
governments
(called “issuers”)
for a certain
amount of time in
exchange for
interest
payments until the
money is repaid Stocks
When you buy a stock, you are buying
a piece of a company (also known as
a “share”) The value of the company
(and your ownership stake) on any

Mid Risk
given day is determined by the forces
of supply and demand.
When a company is growing and
making money, there can be more
demand for its stock and the value of
your share can increase as a result
vice-versa.

Bonds
Bonds are also known as
High Risk
notes, fixed income
securities, debt securities, or
debt obligations.
When you buy or invest in a
bond, the entity issuing that
bond promises to pay you
interest for lending your
money to them. These
interest payments, usually
paid semi-annually, are
based on the interest rate,
also known as a “coupon”
The coupon is one of the
factors that determine the
price of the bond.

9
 The id is the aspect of personality present at birth. BUDGETING

Budgeting for the

Real World
Ready to tackle real-world realities? Here is a step-by-step guide
for creating and leaving on a budget.

You’ll see how creating and living on a budget is an important way of

reaching future financial goals.
By the end of the chapter, you will know how to create and live on a budget.

Like dieting, however, budgeting can have the opposite effect if you’re too
restrictive (Cutting out sweets altogether is more likely to lead to a midnight
dizziness, after all) Your goal is to find a balance between living for today and
saving for tomorrow.

DID YOU KNOW?

There is a misconception among Millennials that they
are too young or dealing with too many uncertainties to
have a financial plan. The truth is, the more flexibility you
want to build into your life, the more important a plan
becomes.”.

COMMITTED DISCRETIONARY
SPENDING SPENDING
Mortgage or rent Digital TV/internet
packages
Utilities
Gym membership
(e.g. gas, electricity,
water)
Food Subscriptions

Car running Entertainment (e.g.

costs (e.g. petrol) cinema, theatre, going
out to eat)
Insurance
(e.g. car, home, life) Days out

TV licence Holidays
 BUDGETING

How to Create A Budget

1Understand what you’re working with.
Figure out how much money you have in your various
savings and checking accounts (include any investment
accounts, if applicable).

These are known as your “assets” or what you own Then tally
up any debt or outstanding loans you may currently have
(student loans, credit card debt, etc )
These are known as your “liabilities” or what you owe Finally,
calculate how much income will be coming in from your
new job, internship, and side project(s) each month Make
sure you calculate total income after taxes

2 Estimate your fixed expenses.

Fixed expenses are the expenditures that won’t change
much from month to month and can be seen as “essentials”
for sustaining your lifestyle

3 Create a savings goal and treat your savings like

an expense.
We recommend you try saving at least 10% of your income
after taxes This might seem like a lot, but if you automate
your monthly deposits, you will soon forget that the money
was there in the first place

4 Estimate your variable expenses.

This refers to the “extras” or non-essentials that you can cut
back on, if necessary, to increase your savings Expenses
that belong in this category include entertainment (think
movie tickets, sports events), eating out, subscriptions,
clothing, and travel It is always a good idea to account for
“miscellaneous” expenses here as well, like birthday gifts
and other unexpected expenses.

5 Track your spending and try to stick to your goals.

Life happens Don’t be too hard on yourself if you exceed
your budget limits every once in awhile Remember, it’s all
about finding the balance that works for you.

6 Use an online tool to create a budget.

There are several great budgeting tools that can help you
track your spending habits by syncing with your accounts
and payment cards Many of these tools will also allow you
to set budget goals for each spending category and
receive alerts whenever you are at risk of exceeding your
budget
 BUDGETING

Coming Out of Debt

1. FACE THE PROBLEM KNOW &

RESEARCH YOUR DEBT

The type of debt you have, the cost of debt, what you
owe, your repayment each month, when you will have
repaid the full amount, which debt has the highest interest
rate.

2.
SHARE YOUR PROBLEM
DEVELOP A SUPPORT
SYSTEM

This will help keep you focused

on your goal of being debt
free.

3.
ADJUST YOUR
BUDGET REVISE
CREATE
YOUR SPENDING

4. STRATEGIES
DEAL WITH
YOUR DEBT
Enabling you to repay
your debt quicker.

WHAT IT MEANS
PERCENTAGE OF
▪ Which debts pose the biggest
threat? INCOME USED FOR
▪ How do you deal with your MONTHLY DEBT
creditors? REPAYMENTS
▪ What are your options?
▪ Will you be blacklisted? 0 - 30%
▪ Is there a sensible level of debt? This indicates you are mostly
▪ What is the sensible level of debt for responsible about money. Debt
you? is under control and you plan
for the future.

30 - 36%
CALCULATE YOUR DEBT RATIO Heading towards danger 36%
is the ‘magic number’ in
▪ Work out your total this ratio – go further than this
monthly debt and there could be in trouble.
repayments

5.
▪ Work out your total 37 - 50%
monthly income NO NEW DEBT Danger
STOP YOURSELF Potential to be out of control.
Reduce debt fast and do not
▪ Work out the relationship Stop yourself from buying
take on new debt.
between your total anything else on credit.
monthly income and your
total monthly debt + 50%
repayments Requires Immediate Action
Debt is out of control and
(Debt/Income)
causing serious financial
x 100% difficulty.

x %
 LOANS/BORROWING
The id is the aspect of personality present at birth.

BORROWING
HOW DO I MAKE
BORROWING CHOICES?
Borrowing is receiving money from someone else with the agreement that
you will pay it back at a later date. You might borrow informally from
friends and family or take out a formal loan with a written agreement
from a bank. If interest charges are added to money that is borrowed,
you will pay more back than the initial amount borrowed.

Loans and borrowing are now a part of modern life; they have become
almost unavoidable in one form or another. You have to be at least 18
Years Old To Borrow From Banks but there are a lot of different forms of
borrowing to choose from.

▪ Using hire purchase to buy a car.

▪ Taking out a personal loan to fund a one-off payment.
▪ Borrowing via a student loan to help fund yourself through higher
education.
▪ Arranging a mortgage to buy a property.
▪ Using a credit card to pay when shopping online.

DID YOU KNOW?

Loan is essentially borrowing against your future
income. You are choosing to have money now that
you will then repay out of your future income, but you
will also pay an extra cost because you’re borrowing it.

The reasons for taking on debt can be

described as “good” or “bad”, depending on
what you borrow the money for:

▪ Good debt will provide an ongoing

benefit to the borrower or will result in
some kind of financial return.

▪ Bad debt does not provide ongoing

benefit or a financial return to the
borrower.
 LOANS/BORROWING
.

LOAN SHARKS DID YOU KNOW?

All of the borrowing we have discussed so far in
this chapter is regulated by the Central Bank Of
Some loan sharks have attempted to charge
Nigeria (CBN). It is an organisation that is set by
interest rates as high than regulatory percents.
law to protect consumers, regulate companies
You
and can fine them, or close them down, if they
might also be pressured into borrowing more
do not abide by the law.
money to repay one loan with another and end
It works to make sure that financial markets are up in a spiral of debt that you can never repay.
honest, fair and effective so that consumers get a
fair deal.
If you felt you were not treated fairly you could
always turn to the CBN as a last resort to help.
QUESTIONS
There are circumstances where individuals set
themselves up as money lenders. These 1. Give one example of a manageable debt
individuals are not regulated by the Central Bank and one example of an unmanageable debt.
Of Nigeria (CBN), and their practice is illegal.
2. Name two consequences of unmanageable
As they are not regulated there is no limit to the
debt.
interest rate they charge or the penalties they
3. What is probably the worst thing you can
can apply.
do if you get into debt?
Loan sharks tend to prey on the most vulnerable 4. Explain what you understand by the term
individuals, and those who struggle to be “duty of care”.
accepted for other forms of borrowing.

MANAGEABLE AND UNMANAGEABLE DEBT

Personal circumstances can change without

warning. A borrower might suddenly find You spend more
themselves unemployed and therefore not than you earn
You borrow to
earning enough income to cover their debts fill the gap
and repayments.
More of your
An unexpected family crisis may mean money
income goes to
intended for repaying debt has to be diverted
repaying debts
elsewhere.
You keep borrowing
If debt is allowed to grow then it may start to to maintain
become unmanageable; if action is not taken it your lifestyle
can have serious financial consequences. In the
same way, rushing into a substantial (or even
The end result:
unnecessary) purchase without proper thought,
planning, budgeting or the means to repay, ALL YOUR INCOME GOES TOWARDS
might also be seen as taking on unmanageable REPAYING DEBT
debt.
YOU’VE NOTHING LEFT!
 LOANS/BORROWING

ACTIVITY A budget tells you what you

Look at the list below and identify those that can't afford, but it doesn't
would be classed as “good” debt and those
classed as “bad” debt.
keep you from buying it.”
“A budget is more than just
Borrowing to:
a series of numbers on a
• Go on an exotic holiday
page; it is an embodiment
• Buy a car to travel to work each day
of your values.”
• Buy a house to live
in
• Get a wardrobe full of new clothes
GOOD OR BAD
• Fund higher education – MAKE SURE
• Get festival tickets IT’S MANAGEABLE
Whether the reason for the debt is deemed to
be good or bad, the borrower must make sure
that they can afford to pay it back.

This usually means the borrower has budgeted

QUESTIONS for the repayment of the debt and has sufficient
regular income to cover the cost. In this case,
1. Name three different forms of
the debt would be called manageable debt.
borrowing.
If a debt is taken on with no means to repay it,
2. What is meant by good and bad
then this is called unmanageable debt.
debt?
3. How is good and bad debt different
to manageable and unmanageable The difference between manageable and
debt? unmanageable debt is not always
straightforward as people’s situations can
change.
Imagine someone who took out a debt they
could manage and afford then loses their job.
REPAYING THE DEBT Very quickly, the once manageable debt can
become unmanageable.
When money is borrowed it has to be repaid. In fact, there are three things which have to be
repaid:
▪ The original sum borrowed (known as the principal).
▪ Interest which is added to the principal.
• Any charges or fees connected to the loan of the principal.

When you borrow money from a bank they will add interest onto the amount you have
borrowed. This is the bank’s reward for lending you the money.
 MAKING THE MOST OF YOUR MONEY
The id is the aspect of personality present at birth.

MAKING THE MOST

OF YOUR MONEY
HOW DO I MAKE SURE I GET THE
MOST FROM MY MONEY?
We all make choices with money nearly every day – whether to spend it or
not, what to spend it on, and searching for the best deals.
This chapter looks at some of the things that can influence these choices, how we can manage
those choices more effectively and what our consumer rights are for the things we do spend
money on.

DID YOU KNOW?

You can actually live within your means.

Sew your cloths according to your
material
 MAKING THE MOST OF YOUR MONEY
The id is the aspect of personality present at birth.

Spending
NEEDS AND WANTS
We all spend money, but what we spend it on varies from one person to another.
Spending can be split into needs and wants:

• Needs – These are the absolute necessities;

the things you really cannot do without. Some
of these are obvious, such as Water, Food Or DISCUSSION
Housing, although you may still need to make
Would you rate a smartphone as a need or
choices about them, such as which brands to
a want? Discuss with others and share your
buy, which will impact on the price. views. Does your view change depending
on:
• Wants – These are the items, services or
experiences you would like to buy if you have • The age of the individual?
the money to do so. This is where personal
choice and preferences really come into • Where in the world they live?
focus. It is all a matter of the Priority Placed on
• The amount of money they have?
each of these by each individual.

INFLUENCES O N SPENDING
It’s not always just our own needs and wants
that determine how we spend our money.
We can be influenced in a whole range of
ways:
▪ Family – We often learn our money habits
from Our Parents, Older Siblings And
Other Family Members. What they buy
tends to influence what
we buy, and how they use their money tends
to affect the way we use it as well.
▪ Peers – Most of us want to be accepted by
our friends and so we buy what they buy to
be a part of the group. Social Media has
had a huge role to play in this in recent
years. For example, following celebrities on
social media platforms can influence
how we spend our money.
▪ Culture – Our cultural, religious background
and events means we may develop a
particular view of money and how it is
spent.
Do your research
Making sure you are aware of the choices you
have is also really important when it comes to
making spending decisions.
Conducting a research can make a big
difference. It can help with:
➢ Identifying exactly what it is you
need.
➢ The range of prices that exist for the same
product – the same product can be priced
differently from one supplier or retailer to
another.
➢ Finding out what others thought of the
product and whether it was value for
money.
➢ Whether there will be any newer versions of
the product coming soon – technology
products, such as mobile phones, can
change very quickly.
 MAKING THE MOST OF YOUR MONEY
The id is the aspect of personality present at birth.
How To Protect Yourself
Against Financial Risk
There are steps you can take to reduce the level of risk you take with
your money.
UNDERSTANDING YOUR
ATTITUDE TO RISK
If you are planning to take a financial risk, it is
important to think about your own attitude to
risk. Are you the sort of person who likes to take
a risk and would not worry if things started to
go wrong? Or are you the type of person who
would worry and be stressed about losing
money, so may want to take lower risk
options? You will also need to look at your
budget and consider how much money you
can afford to put at risk.
BUDGETING
AND PLANNING
A budget looks at what you are earning as
income and compares that to what you are
spending. This provides a snapshot of whether
you have any money left at the end of the
month. If not, you may be able to reduce your
spending or increase your income. If you do
have money left over you can begin considering
whether this should be saved or invested. Having
a budget allows you to see all of your day-to-day
finances in one place, so you can make more
informed choices around saving and investing
depending upon your financial circumstances.
PREPARATION
AND RESEARCH
When deciding whether to make an investment
you can reduce some of the risk by making sure
you have talked to experts, such as a financial
adviser or your bank. They can advise you of
the risks involved in any investment and should
discuss your attitude to risk as
well. You should do research yourself and seek
different opinions before consulting an adviser.
SPREAD THE RISKS
If you do get advice they will almost certainly
advise you to “spread your risks”. This means do
not rely on just one type of financial investment.
If possible, have your money invested in a
range of assets, so that if something goes wrong
with one of them you still have the others to fall
back on.
INSURANCE
Insurance is a way to protect yourself against
the financial loss of something going wrong, for
example, losing your income because you
have fallen ill, breaking your mobile phone or
having an accident in your car. We can’t stop
events like these occurring, but insurance is a
way to protect yourself from financial losses if
they do occur.
 MAKING THE MOST OF YOUR MONEY
The id is the aspect of personality present at birth.

Other Forms Of Protection

Against Financial Risk
INDUSTRY PLAYERS

OTHER FINANCIAL
INSTITUTIONS
▪ Discount houses
▪ Pension Fund Administrators
▪ Development finance
institutions
▪ BOA, BOI, NEXIM, FMBN)
TECHNOLOGY/
TELECOMMUNICATIONS
FIRMS
▪ Settlement providers
▪ ATM service providers
▪ Mobile service
providers
▪ E-payment/e-
channel operators
▪ Other Fintecs
BANKING
▪ Deposit Money Banks
▪ PSB
▪ Primary mortgage
institutions
▪ Microfinance banks INSURANCE
▪ Insurance
companies
▪ Loss adjusters
▪ Insurance agents
REGULATORS
CBN, NDIC, NAICOM,
PenCom, NIMC, NCC,
Self Regulatory
DEVELOPMENT PARTNERS &
Organizations
EXPERTS
▪ International
finance agencies
▪ Donor institutions
PUBLIC INSTITUTIONS ▪ Consulting
companies, advisors
▪ Federal ministries
▪ Government agencies
and programmes
▪ Nigerian Postal Services

Look Closely
& Pay
Attention
KUDIMATA NIG LTD, is a fun Educational Financial
Community (FINCOM) driven towards providing Basic
Financial Education, Advisory, Business Support, Internship,
Mentorship, Empowerment, Training & Development to
individuals and small scale businesses in the interest of
economic growth and long-term viability.
We provide an interactive platform where all money &
business questions, issues, and concerns are discussed and
resolved.

We are a licenced, trusted and valued provider of

knowledge, resources and training to anyone teaching
children and young people how to manage money.

We offer schools free resources and support to make

teaching financial education easy. We know that every
individual and institution is unique and needs to find its
own solution to meeting the needs of its learners.
We believe that Please visit us at www.Kudimata.app to
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CONTACT
Kudimata Nig Ltd
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T. (+234)803-307-5090, (+234)808-992-5524, (+234)916-334-4444
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