Abstract:
Agriculture, and especially the primary agricultural production, is characterized by a series of specificities (seasonality and organic character, slow capital turnover, etc.), due to which it is more demanding regarding other economic activities from the financing point of view. Unquestionably, a limited source of financing is one of the critical problems of farmers. Due to paucity of funds, farmer usually depends on other sources of funding, such as bank loans, government subsidies etc. (Parauši?, Cvijanovi?, 2006). However, the farmer in Nigeria does not have a sufficient level of financial literacy, which significantly hinders access to additional sources of funding. Financially literate people can make sound financial decisions, and make informed choices between different financial products and services, budget and plan ahead to build up some savings, protect themselves against financial risks and invest prudently and to understand their rights and responsibilities (Boekhold, 2016). According to OECD (2015), there is a greater tendency to over-indebtedness and bankruptcy in the absence of financial education in the modern globalized world. Traditionally speaking, the need for financial literacy is something that is commonly associated with the adult. The global financial situation has led to a completely different perception. The situation has shown that a large number of individuals worldwide have lost entire property as a result of insufficient financial knowledge. According to World Bank (2011), financial education should be introduced in the formal education system right from the lower grades of elementary school. According to FED (2010), one of the critical lessons of the financial crisis is the importance of financial literacy. In addition to improving the decision-making process about personal finances, teaching pupils about basic economic principles will help them to better understand and deal with some of crucial issues efficiently (Fabris, Luburi? 2017). Promoting financial education and a positive financial culture in children and youth is essential to ensuring a financially literate population capable of making informed decisions (UNICEF, 2013). |
