Financial Literacy Month Highlight and Competition Winners Introduction Competitions Highlights and Competition Winners

SCHOOLS PUBLIC SPEAKING CONTEST 2004/2005

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Miss Tivanna Wharton receives 1st place winning cheque for the 2004/2005 Public Speaking Contest. L-R: Miss Diana Williams, ECCB representative, Mrs Constance Richardson, Education Coordinator BHS, Miss Tivanna Wharton, contest winner, Mr Wayland Vaughan, Principal, Basseterre High School.   “Understand Your Spending Habits”

By Miss Tivanna Wharton, 1st Place Winner,
Basseterre Senior High School
St Kitts and Nevis

A fool may make money but it takes a wise man to spend it. Wisdom connotes understanding thus, it behooves every individual to be in tune with his financial habits or else face financial ruin.

Mr Moderator, esteemed judges, teachers, fellow students, learned audience, good evening.

This evening the task is mine to discuss the topic “Understand Your Spending Habits” therefore, permit me to clearly define the key terms. According to The Oxford Dictionary, ‘understand’ means to grasp or perceive the meaning of; ‘spending’ means paying out money for a purchase; and ‘habit’ means settled tendency or practice. Therefore, the topic when critically examined now reads, “To grasp the meaning of the practice (or tendency) you have developed in paying out money.”

Mr Moderator, why is it necessary to understand our spending habits? I will tell you. We have goals…we have needs…we have desires…and in most if not all of these instances, money is needed to help us attain them, but the amount of money we have will never be able to satisfy all of them. It means therefore, that in our quest to satisfy these goals, needs and desires we first must order our priorities and understand and differentiate between the habits we have which will help or else prevent us from achieving them.

Learned audience, do you know that if you continue to spend more than you earn, you will end up in trouble, be it – debtors court, stress or embarrassing situations? Such irresponsible behaviour though, has a damaging cyclical effect because, if the individual is affected then the nation would be affected and this in turn impacts the spending power of the average citizen. But Mr Moderator, this ought not to be and would not be if we would heed the wise words penned by the late Thomas Jefferson, “never spend your money before you have it.”

Do not get me wrong, Mr Moderator, some credit is good and is deemed necessary if we are to acquire certain basic needs to improve our standard of living; for instance, purchasing a house. However, what I am submitting is that negative credit practices could be devastating to one’s financial security. It is imperative that we are clear on our values, because, the handling of our money should not conflict with our personal values. As David Bach advises, “put your money where your values are.”

Ladies and gentlemen, we cannot book a flight to somewhere without knowing from where we are taking off. That is why we need to budget! Budgeting will help us to figure out where we stand financially and where we want to go. It will enable us to realise cherished desires by defending them from casual wishes.

You see, there are those who disregard budgeting because of the misguided belief that an increase in earnings would automatically eliminate the restrictions of living paycheck to paycheck. This is a misconception! If we look at the news, nearly everyday someone famous…a huge money earner, declares bankruptcy. Why? Because making money does not necessarily make you a better saver or investor. There is an unwritten rule that states, “expenses will always expand to consume all available income” so that people of varying income brackets could succumb to the same financial pitfalls if their spending habits are similar. Crucial to this stage therefore, is not to focus on what is coming in but rather on what is being paid out. Once we are aware of certain habits, we can become more and more alert to our habitual and sporadic spending patterns and this would empower us to make prudent financial choices.

Mr Moderator, when we holistically appreciate the importance of understanding our spending habits, savings will form an integral part of our budget. Economist Dave Ramsingh purports, “money makes savings possible [and] savings is necessary if investment is to take place.” Learned audience, gathering interest on monies, having bargaining powers with financial institutions, having a sense of security are all derivative benefits from a practical consistent savings scheme. The wise old adage advises that ‘a penny saved is a penny earned’ but today, a penny saved is much more than a penny earned, if it is well invested.

In closing, when we understand the importance of controlling our spending patterns, an overall improved standard of living is expected. Understanding our spending habits gives us greater economic power, and equips us with skills of detection to reduce possible recurring practices, that seek to hinder economic growth and stability. Therefore, let us not only strive for an understanding of our spending habits but also, how to implement tested and tried principles that will work for our long-term prosperity.

I thank you!

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