Financial Opportunities for the 21st Century Youth: A Panel session.
Here was Panel Session on LTBreviews book hub, 5th June 2021, anchored by Ms. Omontese Brimoh and featured:
- Mr. Oloruntobi David, an Agripreneur, Business/Strategy Developer, and CEO – D’TOTAL FARMS, an AgriTech startup creating profitable possibilities for youths and women who want to profit from the African Agribusiness Industry.
- Dr. Ayus Mohammed, Author of The Questions: A reflection on your financial status and How to start a business with little or no capital.
The conversation spanning around questions and answers between the anchor, panelists, and audience are detailed as follows :
Question 1: How can I cultivate the habit of saving?
Panelist 2: First, you need to be organized with respect to your finances
- Know what it cost to be you in a month and be realistic or else you will keep taking from the savings.
- If possible open separate accounts. One for your usual spending and the other for your savings.
- You could limit access to the savings account: perhaps do not have a direct access bank app or an atm card to curtail your spending. Then, every season before your next wage or pocket money is collected, pre-allocate an amount you intend to save i.e. on your budget list have a specific amount you intend to save…
Interjection: Why is it better to do this before the money comes?
Panelist 2: So you can recondition your mind to the amount to save.
Panelist 1: In contribution, when you make your budget, reorganize to prioritize the important ones including tithe and savings. If you do not do this, you will spend on the little things leaving the critical ones.
Since you have this savings amount set, as soon as you can transfer it to the account that you opened for savings.
Question 2:What investment platforms are recommended for students?
Panelist 1: First, invest in yourself; increase your earning capacity and potential. Then save and invest. Start with low-risk insured platforms as a beginner e.g. government shares, low-yielding mutual funds, or investment platforms. Study the outcome and know how to proceed.
Invest based on your risk appetite and financial capacity. Never risk more than you can lose. Every Investment is risky. So, the lower (or the mitigated) the risks, the lower the returns. Consequently, the higher the returns, the higher the risk involved.
- Some FinTech platforms help you invest in low-yield funds with as low as ₦100 – ₦1000. You can use that to whet your appetite, while you understand how to gun for the ones with higher yield.
Panelist 2: In contribution, finances for investment should not be money from your survival cost. When thinking of savings there are 3 portfolios:
- Emergency funds
- Resource funds
- Investment funds
To avoid great losses build your investment funds as you go. Even before you find a suitable platform.
Please do things at your pace. You can say, “During my 4 years in school, I will build savings” using what I call ‘Theory of a 1000’.
- Theory: 1000 per day = 365,000 saved in a year.
1000 per week = 52,000 a year which is more than 200,000 at the end of your university duration.
You can then take this money and split it into different portfolios after university.
Panelist 1: Yes, you should have an investment fund set aside even without having a platform to invest in.
Do things at your own pace: do not get overwhelmed because you have been told to invest. Portfolio building won’t end today, and opportunities to earn and invest won’t stop coming up. Build at your pace.
Interjection: What is resource fund?
Panelist 2: Money meant for a specific event that you are aware is upcoming. E.g. School fees, baby delivery, birthdays, rent, marriage.
You know the date or period these things will occur; you do not have to wait till then before you start putting money aside. Once you pay this year’s rent, you can start putting a certain amount away for next year’s so it is not burdensome when the time comes.
Question 3: How do I find a part-time job without getting scammed?
Panelist 1: VOLUNTEER.
Volunteering is underrated in this part of the world (Africa). Through volunteering, you learn and get recommended for bigger opportunities.
Find a means of adding and delivering top-notch value at the place you desire to work. Search for places you can add value. It is a fast means of getting what you want. It also helps in building your résumé although you can build it aside from volunteering.
To get a part-time job, you must have a skill already. Look for areas: industries, sectors, a particular company or brand where your skills are relevant and you can add value. Find a way of getting in or start by volunteering.
In getting a job, reach out first to your mutual/trusted network. It is safer. Then seek/expand your search for opportunities outside trusted familiar network.
Use what you have, for what you have is enough. (Right credit to J.O.)
Panelist 2: Volunteering: Please your holidays wisely. Start from your network and also use your university. I worked part-time as a visiting lecturer within the same university where I was schooling. You can teach lessons.
I heard of a lady who aids a lecturer in marking. If you are good at your course and you make your interest known, you could get this offer.
Question 4: How can you attach a price to what you do?
Panelist 2: You can by:
- Surveying what others are charging.
- Costing your cost of production and overhead cost. For example, assuming you are a speaker or coach, you could get an idea of what other speakers in your field are charging. But do not forget you researched to get this information. Do not forget you may have used your data and transportation. So make good judgments taking these into consideration.
Panelist 1: What you charge for what you sell depends on the type of brand you are building, and who you are selling to. Your price can be based on industry standards or the price of competitors. Be realistic in your charge in relation to your environment and the people you are serving.
Premium products/services attract premium prices. You can also make your product a generally priced product that many can access. It depends on you:
- Who do you want to serve? Your market – the one you have been able to break into and the one you intend breaking into?
- How much do you think will commensurate the value you are giving out?
Panelist 2: You could also develop your product to suit various audiences.
- Basic products
- Standard products
- Premium products.
Interjection: Please, what is overhead cost?
Panelist 2: Cost incurred outside the major materials. For example: As a caterer, if you only need flour and oil for the baking i.e. flour and oil= N2000. Overhead cost is:
- Transportation to and from the market.
- Data chatting with the customers
- Gas for the baking etc
Panelist 1: We have:
- Direct cost of production like the cost of materials and labor you used.
- However, there are other indirect costs like rent, electricity bills, administrative charges, etc. All these come under overhead costs.
Panelist 2: In addition, most times when students think of finance, they wonder, “But I don’t have a job!”.
You do not necessarily need to have a job. Everyone in life has a source of finance; your source of finance as a student could be your parents – pocket money.
Interjection: From my present financial source (i.e. pocket money) can I generate money?
Panelist 2: Yes.
- Make a list of your expenditure.
- Review the list and see what you normally pay for that you don’t need.
- Then, reallocate that money for savings.
E.g. As a lady, you may spend N2000 on hair-do twice a month: how about learning simple styles you could do for yourself once a month. So you only need to go to the salon once. Then N2000 goes to your savings: You have generated money from within.
Panelist 1: Generate and work with money within before you get external funding.
If you enjoyed reading this, do leave a comment below. And don’t forget to share this post as well.
Got more questions on this? Let us know in the comment section. We would be delighted to have another panel session addressing your financial concerns.
See also, a personal story on volunteering and how I found myself through it.