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Good afternoon,
It is always a pleasure to gather with women of kindred spirit on a day like today, when we celebrate our achievements, our resilience, and our progress. But also, a day when we reflect on the areas where we still need to reap greater success.
The United Nations’ focus for this year’s International Women's Day is on "Rights. Justice. Action. For ALL Women and Girls.". This embodies dismantling structural barriers, ensuring equal justice in legal systems, closing the legal protection gap, and demanding urgent progress for women's rights globally. This includes equal pay for women to receive the same compensation as men for work of equal value, yet a global 20 per cent gender pay gap that persists, with projections suggesting that parity may only be reached in 2069, leads to my key message for this afternoon: the importance of financial literacy to create financial freedom.
It is especially meaningful for me to participate in today’s endeavour with the Girl Guides Association of Barbados, as a movement that has always been about preparing girls and women to lead, to serve, and to grow into confident decision-makers.
As a former Brownie and ‘Sixer’ of the Elves pack at Hindsbury Primary School, and I will not call the year; I can humbly say that I too benefitted for the nurturing of this movement, and it is that same spirit of preparedness, leadership, and self-reliance that we must draw on and extend to our financial lives.
Today, I speak to you as young ladies and women from diverse backgrounds, at different stages of life, but united by one common goal: the desire to improve your lives and shape your own futures. Personal financial management is the most powerful life skill, to help you achieve exactly that and by extension, financial freedom.
Now, when you hear that phrase, financial freedom, what comes to mind?
For some people, financial freedom might mean owning a home, traveling at will, or retiring comfortably. For others, it might mean never worrying about bills. For the remainder, it might mean being able to walk away from a home environment or job that no longer serves them.
For someone younger, it might mean being able to buy the snack you want, the game you want, or the outfit you love, without worrying about whether you or your parents can afford it.
Financial freedom is not just about having money. Financial freedom means being able to make decisions without money constantly blocking you.
To be clear, the opposite of financial freedom is that anxious feeling while waiting for the next payday, that as we would say “Already spend”! Or have you ever looked at your bank account balance and thought, “How did it get this low?’ Or maybe you had to delay an important decision, not because you did not know what to do, but because you were unsure if you could afford to do it?
Financial freedom means being prepared, rather than constantly being reactive with your finances.
As women, many of us juggle multiple roles. We contribute to households, we support extended families, we manage businesses, we care for children and parents. Very often, we are like quiet financial managers behind the scenes. But managing money quietly is not the same as managing it confidently.
Financial freedom means knowing your numbers, understanding your obligations, and having a financial plan.
For me, that freedom comes down to building power with your money by taking control of your money; control over your decisions and thereby control of your future.
While we all get to decide what our financial freedom looks like, the journey towards that freedom usually involves understanding four simple principles:
Let’s start with setting your financial goals and budget. In today’s world, we all well appreciate that our wants are likely to grow. Sometimes due to general price increases or we want the newly released iPhone, or a house and then there is lifestyle inflation; our income increases, so we spend more just as quickly. That new salary goes towards that new car, the upgraded lifestyle.
But wealth is built in the gap between what you earn and what you spend. If your income grows and your lifestyle remains steady, that difference can transform your future.
How do we manage this? By first setting financial goals! This is more than just creating a wish list; it’s about defining your aspirations clearly and laying out a practical roadmap to achieve them. That means figuring out how much the goal will cost, how long it will take to achieve it, and what steps or tools you’ll need to achieve it.
Now if I were to ask you right now, could you tell me off the top, exactly how much money comes into your household each month? And could you also tell me exactly how much goes out? And exactly where it goes?
Some of you may be able to, while others are already hesitating mentally. Some of you may have missed the last two questions while trying to answer the first one… That’s ok!
But ladies, understand that this hesitation can breed financial stress.
Here’s what I want you to do…Start simple. Income on one side. Expenses on the other. No judgement, just information.
Then think about “How do I reduce any unnecessary expenses?” or is there everything that I truly don’t ‘Need’. Do this while remembering that Money has an emotional component. When we are sad, excited, bored, or stressed, we often spend without thinking.
It is important to recognise that reducing expenses helps us to focus on our bigger goals. It is not about punishment, but a means to create Priority Spending.
This may mean for a teenage who immediately wants the latest sneakers or a new Spray Ground bag (according to my daughter), saves and plans to contribute to buying something more meaningful that add to his/her development, like an iPad.
An adult might similarly choose to delay certain purchases in order to prioritise home repairs, start a new side-hustle business, or build long-term security for retirement.
It is about being disciplined to choose your future, over impulse buying, that is paramount.
A dear friend of mine who is here today, believes in an interesting financial rule, “If you can’t afford two, you can’t afford one.” Meaning that if you cannot afford to buy something that is discretionary and be able to replace it when it breaks, you are not really buying from a position of strength, hopefully it is not your expensive cell phone that you dropped. This rule behoves us to avoid impulsive spending because if a purchase that is just a want, is likely to severely impact your finances, then it is not truly affordable right now. It is better instead, to save and plan for it.
At times proper financial planning may also require that you expand your earning power; a part-time job, a micro business or a side-hustle such as baking, or being a nail or hair tech, event coordinator or even selling customised or hand-made goods. For our young ones, it may mean doing extra chores, to save towards something or an event that we as parents have told them that we cannot afford right now.
Because financial freedom begins the moment you decide to take control of your money instead of letting your money control you, it means that we must consciously decide how best to divide our income or allowance. Part of this is determining how much of the pie will be spent, how much to save, and how to allocate for debt service and investing.
What do you presently pay yourself? Every time you receive money, whether it is an allowance, a salary, or payment for a small job; How much of that money do you keep for yourself?
And if the answer is none, then I want to ask another question. Are you being fair to yourself, since Saving is the first step towards financial freedom?
Remember I mentioned dividing your income or allowance. The first percentage should always be your savings. Ideally, you should save about 30 per cent of your income. If that is too much right now, start with 10 per cent.
For the young ones, this might mean saving $5 of your $50 allowance. Remember that while your allowance is limited now, so are your expenses. Don’t wait to build this habit when you have a mortgage, land tax, car payments, insurance, bills, and all the other joys of adulthood to juggle. Trust me on this; take advantage of this time when you have limited obligations to start setting money aside.
Once you have this clarity, you can adequately build your safety net. In the same way that you would prepare for a camp, a hike, or a service project, you must prepare for life’s financial uncertainties.
Ideally, you should aim for:
And then you can do any additional savings or investment beyond that.
Now, before anyone feels overwhelmed, let me remind you: start small. Whether its $20 or $50 per week, this is still progress and be consistent. This consistency is the advantage of a Meeting Turn (Sou Sou) that many persons still use.
This approach also prepares us for big or unexpected purchases. And gives you choices in the future – financial freedom!
But the principle stays the same; pay yourself first. And ideally, may sure that your savings account is earning a bit of interest, as you set aside funds.
Later, instead of borrowing when various life events happen, you be better prepared. This is how some people stay out of debt or limit their use of it.
Now, let’s move to something that affects many households: Debt. And let’s tie that into smart spending.
Ladies, it is important to note that not all debt is bad. A mortgage that builds equity is different from high-interest credit card debt. Good debt is often used to improve your future, such as education or training that increases your earning potential. In contrast, bad debt often comes from buying things that lose value quickly.
But let me ask you this: Do you know the interest rate on every loan you carry? It is also important to know how much fees you are expected to pay, beyond the repayment of the initial amount borrowed.
Also, through saving, you can reduce how much debt you take on and have to “payback”– as we call it – reduce the debt burden.
For instance, if you are paying 12 percent on a loan while your savings account earns 1.5 percent, your money is not working for you. It is working against you.
Credit card minimum payments are especially deceptive simply because they are designed to keep you paying for years, sometimes decades.
When it comes to clearing debt, there are two main methods that I want you to be mindful of:
I hope you’re still with me. Now let’s briefly discuss investments.
For some of us, this may mean setting aside as little as $50 to purchase some Government securities. If you are new to investing, instruments like this can be a useful starting point. They offer an opportunity to move beyond simply saving money.
The Central Bank issues BOSS+ bonds on behalf of Government, which I am sure many of you have heard about. This five-year bond offers 4.5 percent interest per year, which is significantly higher than the interest that you earn on savings accounts.
Many people think investing only means buying bonds or stocks in a company, but for the more seasoned this may mean investing with a growing small business or in real estate. Ultimately, when it comes to riskier investments, don’t invest what you’re not willing to lose. This is the same rule that my mother instilled, don’t lend to persons what you can’t walk away from.
To summarise and reiterate the four key principles to build your financial freedom:
I encourage you to visit the Central Bank’s website for more on our digital financial literacy programme, MoneySmart, where you'll find information about these said elements to make informed financial decisions, including on planning for retirement, and protecting yourself from falling victim to scams and financial fraud.
Lastly, I want to touch on building your financial confidence.
Confidence with money is not something we are born with. It is a life skill that we have to nurture. Many young women are not encouraged to speak about investing or financial planning. Some are even told those decisions are for the professionals or would be handled by a parent, husband or someone else.
Today, I urge you to shift that mindset. I urge you to learn about interest rates. Learn about investment options - understand the risks, reward and how it works! Be willing to explain it clearly to someone else and share ideas, while remembering that if something sounds too good to be true, then pause.
In listening to the Thanksgiving tributes for the late Reverend Jesse Jackson, I was reminded of the importance of us all making “intentional and consistent decisions and actions to create change” and as women that applies to our financial freedom as well.
Financial confidence means investing in yourself:
Your education.
Your skills.
Your earning capacity.
To help guide that process, I want to offer you a simple acronym inspired by this year’s theme for International Women's Day, “Give to Gain” …a phrase that reflects how we can give ourselves the tools to gain financial peace and independence.
4 letters…G.I.V.E.
G – Grow your knowledge
Start with understanding: your income, your expenses, your interest rates, your opportunities. Knowledge is the foundation of financial strength.
I – Invest in yourself
Your skills, your education, your earning power, your financial habits because these are investments that compound over time.
V – Value your journey
Financial progress looks different for every woman. Do not compare your chapter one to someone else’s chapter. Value where you are and commit to where you are going.
E – Empower others
As you grow more confident, share what you know. When one woman learns, she lifts another.
And if you take away anything, take this… Empowered women, truly empower women.
Finally, I hope you understand by now that financial literacy is not about complicated formulas. It is about understanding the choices available to you and feeling confident enough to ask the right questions before making financial decisions.
And every woman here today has the capacity to grow. Whether you are just starting out, rebuilding, or refining your approach to your finances, improvement is always possible.
Ladies, in closing,
On this International Women’s Day, I encourage you to learn to manage your money wisely, to change not only your own lives; but to improve the livelihood of our families, communities, and entire economy.
We can build financial freedom which gives you the power to shape your own life through:
One informed financial decision at a time.
One disciplined habit at a time.
One intentional choice at a time.
Thank you, and I look forward to your questions.