Young people in Ghana today are caught between an incredible world of opportunity and significant uncertainty. The young people everywhere, from the bustling streets of Accra to the classrooms of Cape Coast, from the lively marketplaces of Kumasi to the mining communities of Tarkwa, are full of aspirations for prosperity, security, and financial autonomy. Still, many people wonder how to ensure a brighter future in a world that is changing so quickly. The concept of investing – making your money work for you – is not new to us.
Ghanaians already practised their own form of investment through family and community-based networks even before official banks and online investment platforms emerged. Many young people used to take part in “susu” groups, a long-standing savings custom in which people made modest daily or weekly contributions to a communal pot that was overseen by a reliable collector.
Each member received their lump sum at the end of the cycle. It was an investment driven by the community, discipline, and trust, not merely a means of saving money. Others put their money into livestock, such as lambs, chickens, or goats, which were small but valuable commodities that could be sold when they needed money and that grew in value over time.
Young farmers in rural areas frequently used their harvest income to purchase additional land, farming equipment, or cocoa seedlings. That was how they defined "portfolio growth." Although there were no apps or stock exchanges, the guiding idea remained the same: give up today in order to enjoy tomorrow. However, as the economy changed and technology impacted the way we live and work, the perspective of many young on finances have also changed.
Peer pressure, social media culture, and the increase of consumerism have made saving money more difficult and spending easier. And yet, the earlier you start saving, investing, and planning, the more influence you have over your financial future. The opportunity to accumulate wealth is available to everyone, whether they are students receiving a modest stipend, fresh graduates.
The Ghanaian Youth and the Money Mindset
Today's young people in Ghana are clever, imaginative, and ambitious. Young people are working hard to make ends meet, whether it is through online enterprises or "side hustles." Nonetheless, many people continue to live pay cheque to pay cheque or engage in impulsive spending. Social media doesn't make things simpler. The culture of quick gratification fostered by platforms such as Instagram and TikTok frequently encourages people to "show" achievement before achieving it.
Despite their inability to pay, young people feel pressured to host extravagant birthday parties, use the latest iPhone, or wear luxury clothing. Although you can make an impression on others now, safeguarding your future is what really matters. Your investment path could be built on the GHS 500 you spend each weekend on fast food and data packages.
Excluding interest or potential profits, a five-year investment of GHS 500 each month would equal GHS 30,000. The financial tools available to our age are significantly more extensive, including digital banks, mutual funds, investment apps, and mobile money. There has never been a more accessible opportunity to invest.
Why You Should Start Investing Early
One of the most potent factors in investing is time, which is why you should begin investing early. Since compound interest works by making your money earn more money, the earlier you start, the more your money grows. For example, if Ama invests GHS 200 a month at age 20 and receives an average return of 10% per year, she would have invested GHS 48,000 by age 40, but her total investment could reach GHS 150,000 or more.
However, if Kojo waits until he is thirty years old to invest the same amount, he will have invested GHS 24,000 by the time he is forty, but his total may only reach about GHS 38,000. Ama simply began sooner; she didn't make any additional investments. Time has that kind of power. You can also take more measured risks if you start early. Younger people have more time to bounce back from market downturns and financial errors. Additionally, it helps you develop a lifelong habit of financial discipline.
In part two of this series, I will discuss the critical matter of investment opportunities in Ghana and how to build an investment habit.
Source: William Adjei Opare, Sales & Support Executive, Stanbic Investment Management Services (SIMS)
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