Credit union pushing financial literacy

by Marlon Madden

The lack of financial literacy among many Barbadians continues to be a major concern for at least one financial institution that is seeking to turn that situation around.

Creig Jones, members relations executive at the City of Bridgetown Co-Operative Credit Union told Today’s BUSINESS that institution would be embarking on a weekly programme aimed at educating Barbadians on financial matters in an effort to help them make
better choices.

He said the need was even greater given the economic fallout from the COVID-19 pandemic.

“In response to the ongoing financial challenges facing many Barbadians and the growing desire for financial literacy, the City of Bridgetown Co-Operative Credit Union, as a part of it outreach programme to members and the wider public, has created the video series, Members 1st,” he said.

The short video series, which will begin this week, will run every Friday on the credit union’s social media platforms as well as the national television station
CBC TV8. Viewers will be able to post their questions, which will be answered in subsequent series.

“For us, the lack of financial literacy is really a major issue. Our experience has shown that for most persons in Barbados their first exposure is through the world of business and making major decisions,” said Jones.

“You have a student for example, who go through their entire school career and the first time they want to purchase a car or even get their own home that is the first time that they are hearing certain terms – what a mortgage is, interest rate, things like that. What that means is that they are not really in a position to make the best possible decision that they could make,”
he explained.

He also pointed out that Barbadians were being “trapped” by non-traditional lenders, who were offering loans that did not require a lot of collateral but at the same time were not having any mercy when it came to interest rates on those loans.

“There is no obligation that they have to you and because of that a lot of Barbadians have been trapped into taking loans with abnormally high interest rates that is onerous on them and they are drowning in debt, and we have realised that even some of our members have been snared by these enticing offers.

“What they lack is the understanding of financial literacy and how important it is to think things through to understand what is being offered and to determine what is a good option or a better option. So it is a major problem in Barbados,” he said.

Further explaining the aim behind the Members 1st programme, Jones said in addition to making Barbadians more financially aware, the credit union was also seeking to woo more people to invest in the movement.

“We want more people to be more educated. It is not only for our members of our credit union but it is a public programme. Ultimately, we want people to join our credit union because we believe our product and services are ideal for persons. But first, we want to do it from a platform where persons understand the value of joining a credit union and the value of joining our credit union . . . but what we also want is a more financial literate member, then they can become more productive citizens,” he said.

marlonmadden@barbadostoday.bb