BoG Pushes Financial Literacy Drive as Digital Loans Expose Youth to Rising Risks
The Bank of Ghana says strengthening financial literacy has become critical to protecting consumers as digital financial services expand, warning that poor financial knowledge is exposing many Ghanaians to avoidable borrowing risks, dormant accounts and widespread misconceptions about basic banking products.
According to the central bank, building financial capability at an early age will enhance consumer protection and promote responsible use of financial services before young people become active participants in the financial system.
Speaking on the sidelines of a financial literacy programme for selected senior high schools in the Western Region, Godfred Cudjoe of the Bank of Ghana’s Financial Stability Department said the central bank has deliberately shifted part of its education campaign to second-cycle institutions after years of engaging market women, the media and the general public.
“Now we thought of having this also for our second cycle institutions. The idea is to catch them young. We want the same knowledge with the kids,” he said.
He added that the initiative is designed to extend beyond the classroom, with students expected to transfer the knowledge to their households and make informed financial decisions throughout their lives.
“Once they go home, they'll be able to also explain some of the things to their parents, and they themselves will be able to make some sound financial decisions.”
Focus on responsible borrowing
A major component of the programme is responsible borrowing, especially as digital credit products become more accessible. Mr. Cudjoe said students are being educated on the consequences of mobile loan defaults, the responsibilities of loan guarantors and the long-term impact poor repayment behaviour can have on an individual’s financial future.
Clearing misconceptions about banking
The central bank also used the programme to address common misconceptions about banking products — particularly the role of a next of kin.
“The next of kin is merely a point of contact in case the bank is looking for that customer and they can't find,” he clarified.
He stressed that a next of kin does not automatically inherit funds in a bank account, but simply enables financial institutions to reach out when an account becomes inactive or the account holder cannot be contacted.
Clarifying this distinction, he said, is essential to preventing disputes and ensuring dormant accounts are properly managed.
Consumer protection and practical skills
The programme also covered practical consumer protection measures, including:
How to identify Bank of Ghana–licensed financial institutions
How to safeguard banking passwords
How to lodge complaints against regulated institutions
How to recognise security features on genuine Ghana cedi notes
Students were further encouraged to handle the cedi responsibly by avoiding practices that damage banknotes, such as writing on or spraying currency during social events.
The financial literacy initiative is currently being rolled out in selected senior high schools, including Archbishop Porter Girls, Adiembra SHS, and Mpohor SHS, as the Bank of Ghana works to build a financially informed generation capable of making sound financial decisions in an increasingly digital economy.
— CitiNewsRoom