Will Online Technology help Loan Education?

Mar 07, 2016
Author: Ean Barnard

Finance has been an integral part of human society since the dawn of civilisation, in one way or another. It is a cornerstone of prosperity and security that builds confidence and knowledge in the lives of individuals and countries like South Africa as a whole. Financial literacy has taken huge leaps in the online technology space and helps thousands with topics like loan education.

Financial literacy, for some, is a serious barrier to financial and economic participation. Many have a great lack of knowledge regarding financial products, and are not able to access banking and financial services.

Financial literacy is thus the ability to understand how money works, how people earn it, and how to effectively manage and invest it.

Being educated in basic financial principles is key to people’s financial and economic well-being, and therefore also the overall health of a country’s economy. When we are able to make informed financial choices regarding saving, housing, education, and budgeting, we become more able to realise the good utilisation of our resources.

Lots of people in South Africa, when asked if they really grasp the effect of inflation or compound interest on loans, would answer with a vague understanding. How much more vagueness can there be on less everyday topics like loan education then? There a is a gross amount of inequalities in South African’s’ financial literacy, and millions live without a proper budget as a result of paycheque-to-paycheque living.

Regarding financial literacy, the most important gaps that exist are involved in savings, budgets, and insurance products.

The internet can be a mobility-enhancing tool. More and more people are starting to use the internet for jobs, education, social engagement, health and newsgathering. Though, for some, it’s still just a tool for entertainment and recreation, not yet fully realising its potential. For many, it should become a tool for loan education.

So, will the online world help loan education? Absolutely.

Now, more than ever, we need to educate ourselves in money and finance and for many South African, loans. Luckily, the online world is quickly becoming more accessible for most and hosts an array of educational tools. There are so many websites and products that can help people manage their money, invest in loan education, and initiatives that support financial education in an increasingly digital world.

An investment in knowledge always pays the best interest – Benjamin Franklin

If you’d like to freshen up on your financial knowledge via the online world, here’s 2 cool places you can go or tools you can use:

Old Mutual's’ On The Money Programme

By using the South African Big 5 and their characteristics as reference points, you can learn how to commit to a savings plan, identify expenses and learn good budgeting skills. Perhaps the most important is the debt management facility that is provided, here at Fincheck we highly recommend this tool!

Khan Academy

This is a great online tool that you can learn anything on, and more specifically, the ins-and-outs of finance. Here you can learn about interest, debt, housing, inflation, taxes, basic accounting and financial statements and loads more.

Among these, there’s an ocean full of tools you can use, just make a few clicks here and there and you’ll find something great. You can also expand your knowledge on loans and other financial products at the Fincheck Top Tips page.

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