Poor financial habits influenced by African culture
Insights from the Smart Money Woman series
In 2022, around 431 million people in Africa lived in extreme poverty. Poverty is not a new phenomenon if you were born in Africa. Efosa Ojomo, an alumnus of the prestigious Forum for Growth and Innovation Center at the Harvard Business School (HBS), In his Ted Talk ‘The Poverty Paradox: Why Most Poverty Programs Fail And How To Fix Them’ stated facts about poverty that made me realise it is more of a mindset problem than a resource problem. Imagine all the projects and funds directed at eliminating poverty for years yet some of the countries are more poor now than they were in the 90s. In his talk, He suggests a different way to solve the global poverty problem. Through innovation, through thinking.
The “Smart Money Woman” series, authored by Arese Ugwu, offers a wealth of insights and practical advice on financial management, especially for women. It narrows down our financial habits which somehow have been sabotaging us for decades. Here are my key takeaways from the series:
What will people say if I don’t contribute?
There is this obligation to contribute money to attend a wedding or a funeral even if it means taking a loan. The worst part of this is we contribute money to people who are not close to us, and sometimes even to people we don’t know. It’s common to receive cards from your classmates in primary school or university requesting contributions for their wedding. Most people feel guilty about saying no, even if they don’t have the money. Weddings are expensive today, you’d be required to wear them according to the wedding theme, which will cost you money, imagine if you have 2 or 3 weddings in a month! The hard part is that most people getting married feel entitled to receive contributions in such a way they decide how much you should give regardless of your income situation. I am not advising you to stop contributing to weddings at all, but only do so if you are financially able and don’t do it because you fear being misunderstood or disliked. It is better to be misunderstood than to suffer bad debts. Also, it is not wise to contribute to everyone’s wedding! Their wedding is not your obligation, your contribution is an act of love and should be something you do voluntarily and not because of pressure.
The pressure during funerals
When it comes to funerals, I was more surprised when I visited Ghana in April 2024. The funeral here can even take three months, this is because the family of the deceased take time to plan the funeral, after the burial there is a reception party, where most show off , meaning dress or give beyond their means.
from the series there was a family that had a good reputation, the family was known to be the wealthiest in town. However the family was facing bankruptcy at the time of the funeral, but still they wanted to hold a prestigious funeral, we do this at weddings, parties etc. Always ask yourself why you are doing it. And are you capable of doing so? I know this can be a tough choice for an individual to make because issues like these involve family decisions.
The First Born syndrome
My friend introduced this word to me. There is a common saying that firstborns are deputy parents in most African families. Recently I was having a conversation with my friend who is also a firstborn like me. She shared how overwhelmed she felt after taking a lead role in taking care of her parents, building their house, and meeting their daily needs. She also had two relatives she was paying for their college education and feeding. She is a mother and has a husband. When the responsibilities are overwhelming to the point you neglect your own needs, it becomes unhealthy. My friend was complaining of being tired, angry and resentful.
Respecting your parents does not mean doing everything they say you should do. Your parents should understand that you are an adult and you have the right to make your choices and decisions. Don’t allow yourself to be treated like a child.
Set clear boundaries and be realistic in what you can offer. Your parents may demand something from you, but if it’s beyond your ability, don’t feel guilty. It’s not your fault that they are in need. Explain clearly what you can offer and what you cannot.
I’m going to share other common habits in the next post, tell me what other habits affecting our finances you have experienced as an influence from culture. Let me know in the comments about other habits affecting your financial well-being.