The importance of financial literacy cannot be overstated as it plays a pivotal role in empowering people to make informed financial decisions.
It supports the effective management of personal resources and enables the pursuit of life goals such as home ownership, education funding and retirement planning.
Furthermore, financial literacy contributes to economic stability by promoting responsible financial behaviour, reducing vulnerability to fraud and deepening overall economic understanding.
Ultimately, it serves as a catalyst for both personal and broader economic well-being.
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Financial literacy for blue-collar workers
The UAE has 2.2 million blue-collar workers, who constitute about 52 per cent of the nation’s workforce.
Financial literacy is critical for blue-collar workers as this demographic often faces unique challenges, including limited access to financial education and resources.
Enhancing their financial literacy can lead to better management of earnings, savings and investments, and reduce vulnerability to financial risks.
It empowers them to plan for future goals such as education for children or retirement, and contributes to overall financial well-being and security.
Financial literacy bolsters economic resilience, aiding workers in navigating uncertainties and prioritising expenses.
It also opens doors for career growth and entrepreneurial opportunities, as financial responsibility is often linked with capability.
Additionally, the benefits of financial literacy extend to workers’ families and communities, amplifying its positive impact.
There are several programmes available in the market to raise awareness and spread more understanding on the topic, such as the Financial Freedom for All campaign launched by financial services provider Century Financial in association with the University of Dubai, PRME Middle East and the PRME Anti-Poverty Working Group.
The long-term initiative, which included the launch of a book in the first phase, introduces the fundamentals of saving and investing, even with minimal means.
Financial pitfalls
Blue-collar workers often face financial literacy challenges, such as inadequate budgeting, insufficient savings, misunderstanding credit usage and vulnerability to financial fraud.
Educating them in financial literacy is crucial as it empowers them to manage their finances effectively, plan for long-term goals and protect themselves from financial exploitation.
This education can lead to improved financial stability and security, which is crucial for their overall well-being and economic progress.
Smart money management
Blue-collar workers must be taught effective management of finances, the importance of understanding how to save for emergencies and future goals, responsible use of credit to avoid burdensome debt and the need for long-term financial planning, including retirement and insurance.
Additionally, raising awareness about financial fraud is crucial to protect them from potential swindlers.
Focusing on these aspects can guide blue-collar workers towards making informed and beneficial financial decisions.
Guide for trainers
The Train the Trainers manual in the book is tailored for trainers educating blue-collar workers in the UAE on personal finance.
It begins with basic finance concepts, advancing through budgeting, saving strategies, debt management and income maximisation. Additionally, it covers tax, legal aspects, banking services and insurance.
The manual also delves into retirement planning, investment basics and financial security, concluding with a chapter on educational resources.
This holistic approach aims to empower workers with essential financial management skills, enhancing their personal and professional growth.
Rollout plan
The Financial Freedom for All initiative, will, in a later phase, introduce focus group meetings to bring together stakeholders to chart a course of action with a defined timetable in addition to structured and measurable implementation.
More than 15 educational institutions and 25 corporates have joined hands at the initial stage, which will blend academic insights with practical industry perspectives.
Following the introduction in Dubai, the initiative will expand to Abu Dhabi, and eventually, to the rest of the GCC countries.
This phased approach not only supports effective resource allocation but also allows for the tailoring of the programme to address specific regional needs and challenges.
For the UAE, the initiative promises to yield substantial dividends.
A financially literate workforce is more stable, productive and less prone to economic vulnerabilities.
This stability translates into broader economic benefits, including reduced financial strain on social systems and a more robust, resilient economy.
Ultimately, this initiative contributes to the UAE’s vision of fostering an inclusive, sustainable and prosperous society for all its residents.
Sameera Fernandes is the director of corporate affairs and sustainability at Century Financial and also a global educationist
