Monthly Archives: October 2018

Often referred to as an underdeveloped parish, which is plagued with youth unemployment,residents in St Thomas can now anticipate a “positive wave of change” emerging during the next few years, if the social entrepreneur and native of the parish, Tishauna Mullings, founder of NexxStepp Lifelong Educational Services,achieve her goals.

Ms. Mullings recently launched her social enterprise, which focuses on empowering young people, and to equip them with practical skills for employment.

“We plan to start a wave that will change the current view of St. Thomas. Therefore, our aim is to solve issues, such as reducing the gap between employment opportunities and available skills set through a fusion of key academic support and life coaching,” she said of her organisation, which was officially launched at a mingle under the theme, “The Magic of Transformation,” at the Golden Shore Resort, Lyssons, in St. Thomas, on October 18, 2018

Referencing data from the Inter-American Development Bank (IDB), Ms. Mullings pointed out that only 40 per cent of the approximately 140 million young people, age 15 to 29 in the Latin American and the Caribbean,make up the workforce; representing one in five youths who do not work or study; and the youth unemployment rate is three times higher than the adult unemployment rate, she informed.

“In Jamaica, statistics indicate that, the youth unemployment rate is approximately 29.6 per cent. And, local employers indicate that some young people are ill-equipped to seek and keep a job,” she added.

Ms. Mullings said that NexxStepp, which was established six years ago, has already trained hundreds of young people; and created part and full time employment for many in St Thomas.

The organisation provides: academic excellence coaching, personal and organisational growth; motivational and inspirational communication; as well as, workshops and life coaching skills for groups and individual persons.

Opal Whyte, project manager of Social Enterprise Boost Initiative (SEBI)urged patrons attending the launch event to support NexxStepp Lifelong Educational Services, which is participating in the Accelerator Programme being conducted by SEBI.

SEBI is a project of the JN Foundation and USAID; and, through it’s Accelerator Programme, entrepreneurs are being taught toenhance their social businesses.

“NexxSteppcannot grow if you don’t do business with them,” Ms. Whyte pointed out. “Therefore, we urge you to support the business aspects of what they do; and, you could also sponsor a young person to participate in one of their educational services.”

She commended the social enterprise for being true to its roots, and focusing on the development of St. Thomas. “The social mission of NexxStepp is focused on St. Thomas; and, if this organisation transforms young people in this parish, then I believe that St. Thomas will grow from within; and that is why the JN Foundation and USAID believe in the work of NexxStepp,” she said.

Jerome Cowans, senior project director of Housing, for Opportunity, Production and Employment (HOPE) Programme,located in the Office of the Prime Minister, who was the guest speaker of the event, said that the services of NexxStepp were critical in the preparation of young people for the world of work.

“The first and most important goal of our HOPE Programme is personal development, which is absolutely essential,” Mr Cowans pointed out.

“We, therefore,identify mandatorycore skills for every young person who participates in our Programme; and personal development is one of them,” he informed.“That is one of the reasons why NexxStepp is critical, because the HOPE Programme alone cannot engage all of our young people,”noting that a recent survey indicated that there was approximately 130,000 unemployed youthsacross the country.

Dionne Rose| Communication Officer | JN Group Corporate Communications
The Jamaica National Group | Chief Office

Several experts in the financial, education and employment sectors agree that exposing young people to basic financial concepts at an early age in a classroom setting will assist them to make better ‘financial decisions as adults.
“This can only work out to the advantage of the child in the long run, especially when he or she is faced with critical life decisions about how to spend and invest money. It will also redound to the benefit of the country, given that financially educated consumers can make a positive impact on emerging economies,” posits Rose Miller, grants manager at the JN Foundation.
Miller maintained that optimally, personal finance should be taught in school and at home.
“However, the reality is that many Jamaicans aren’t as financially knowledgeable as they think they are,” she said, pointing out that the Standard & Poor’s (S&P) 2015 Global Financial Literacy Study indicates that only 33 per cent of adult Jamaicans are considered financially literate”.
 
BAD FINANCIAL DECISIONS
 
Miller said that what the S&P study revealed is that many Jamaicans are making ill-advised financial decisions, which end up costing them thousands, even millions of dollars over time.
“Financial ignorance carries significant costs. Consumers who fail to understand simple concepts, such as interest rates, spend more on transaction fees and run up bigger debts. They also end up borrowing more and saving less money,” she advised.
Miller, who also heads the JN Foundation’s BeWi$e financial-empowerment programme, noted that JN hosts workshops about money management for children and adults across the country. JN Bank has also implemented the JN School Savers’ Programme, which inculcates good money-management principles and practices in students at the basic-school level and upwards.
“I believe that financial education is too important a subject to be left to chance and it should, therefore, be fully integrated into the school curriculum,” she said. “Playing sports, exercising and brushing one’s teeth are good life habits, and we all start learning them from we are very young. Personal finance is also about establishing good habits from as early as possible.”
Miller maintained that courses should be targeted at teach ing children the value and consequences of their financial decisions, which relates to living a healthy and responsible life.
“Children are confronted early in their growth process with wanting to buy a toy or a cell phone,” she added, explaining that these are financial learning opportunities.
Miller said elementary, school students can start with basic concepts such as trade-offs, price comparisons, costs versus benefits, and risk versus reward, as well as the value of money, which is another concept that is lost on the very young.
“We watched our parents use ‘real money’ to pay for goods when we were growing up. However, today, we live in a digital age in which our children see credit cards and debit cards being used instead of cash. Therefore, we need to explain to them that money is the unit that backs those cards,” she says, “as that is not readily apparent.”
Psychologist and founder of business management consulting firm Above or Beyond, Dr Leachim Semaj, agrees that financial education must be incorporated in the school curriculum from the basic-school level, pointing out that as students mature, more complex concepts can be introduced, from insurance and credit to compound interest.
“The average Jamaican has no idea how money works. It is as bad as that. A lot of people don’t understand something as basic as compound interest.
As a result, over the years, many institutions have taken advantage of their ignorance,” he said.
Semaj further noted, “The average small-business owner is ignorant about money management and profit margins. Many people confuse cash flow’with profit. They don’t even understand pricing. The fact is that cash flow is keeping a lot of businesses afloat, and the operators get the impression that they have a successful business, but they’re simply one step away from failure,” Semaj stated.
He noted that this is the kind of information and knowledge that young people must be exposed to in the education system.
“We also need to teach them concepts such as, what is a good loan versus a bad loan? Meaning, what are things you should borrow to achieve, and what you shouldn’t?” he advised.
 
Review the curriculum
 
Retired educator Esther Tyson said that with some schools now including entrepreneurship in their curricula, financial education should be interwoven into those lessons.
“It would help Jamaicans to better understand how financial institutions work, how to plan ahead and save for long-term goals,” she related. “Especially since we’re in the age where everything is immediate, and this makes things even worse as our young people need to learn that if they want to achieve big things, they should start very small,” she said. Tyson said that critical to the success of these initiatives is a curriculum, that allows children to make financial decisions and receive feedback in a safe space.
This can be achieved through a combination of traditional classroom activities, technology-enabled games, and some limited real-world practice, she affirmed.

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Long-term financial planning may not be at the forefront of one’s mind when they’re a 20-year-old university graduate.

As grants manager at the JN Foundation Rose Miller puts it, money management, the stock market, and retirement planning are remote ideas for many young people. But she warns that a lack of focus during one’s 20s when it comes to money will begin to take its toll by the time one is in one’s 30s.

The JN Foundation BeWi$e financial empowerment programme head maintained that this is why it’s important to plan ahead, noting that the sooner you determine how to manage your finances in some basic ways, the better off you’ll be.

In that vein, this week she highlights a few mistakes people in their 20s should avoid so that they will prosper in their 30s and beyond.

1. Avoid Skipping Student

“Delaying payment on one’s student loan is a bad idea,” she declared. Why? “Because, that will negatively affect your credit rating, and may also extend your debt burden into a time period when you will be exploring starting a family and purchasing a home. The sooner those university loans are paid down, the easier it will be to manage the next phase of your life. Young people are better off making a dent in their student loans before it’s time to settle down.

2. Avoid Spending All

“The adage, ‘It’s not how much you earn, but how much you save’ still rings true,” she noted, stating that if people are spending as much as, or more than they earn, it is only a matter of time before they will spiral into unmanageable debt.

“That lifestyle will make it almost impossible to build significant savings. Therefore, the solution is to live within your means, not beyond,” she advised.

Miller also cautioned young people to steer clear of trying to keep up with their friends’ spending habits. “Living up to your friends’ or co-workers’ standards is tempting. Choosing where to eat, what to wear, and what gadgets to buy based on what your friends are doing can ruin your budget,” she said.

“Simply because your friend seems able to afford the latest electronic device or an overseas trip or even attend the various weekend entertainment events doesn’t necessarily mean you can,” the financial adviser added.

3. Avoid Not Establishing a Savings Goal

Miller says to save more, it’s important to start off with a clear goal; and then put a specific plan in place to achieve that goal.

“Start by determining exactly what major purchases you plan for your future such as a home, a car, or improving your education. Next, determine how much you need to save to achieve those goals and how long a period you need to save the funds,” she recommended. “Finally, set up a recurring automatic transfer from your current account to your savings account, to ensure that you’ll be consistent with your savings.”

4. Avoid Dipping Into Savings

“Once you set up the account to take care of the goals you are trying to achieve, keep your hands out of it, be steadfast and determined,” Miller warned. She informed that one should create a mental and logistical barrier between themselves and this money, move it into a separate account, such as a high-interest savings account, or a money market account, which both offer higher interest rates than the traditional savings account. “The same is true for your emergency fund; unless you’re facing an actual emergency, keep your hands out of it.”

5. Avoid Paying the Minimum on Your Credit Card Balance

Most credit cards only require payment of one to three per cent of your balance each month. Paying the minimum can be a tempting option, especially if your budget is tight, but it can cost you a fortune in the long term because you’ll have to pay interest on the outstanding balance due.

Get in the habit of spending according to your budget and making monthly credit card payments in full. The easiest way to do that is to arrange to transfer the full amount of money you owe from your chequing account to your credit card company, every month. And, in some cases, you may even earn “cash back” at the end of the month based on the rewards on your credit card. “And, finally, as a young person there should be no need to take out more than one credit card,” Miller concluded.

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Jason McNeish (right) , marketing manager, The Jamaica National Group examines one of the bags produced by Bresheh with Randy McLaren, co-founder & managing director of Bresheh. Occasion was the official launch of Bresheh’s new collections of bags on  Thursday, September 27 at the Opa Greek Restaurant & Lounge at Devon House in Kingston.

Randy McLaren (centre), co-founder & managing director of Bresheh takes a photo with members of Ashe performing arts group. Occasion was the official launch of Bresheh’s new collections of bags on  Thursday, September 27 at the Opa Greek Restaurant & Lounge at Devon House in Kingston. The collection was launched in collaboration with the Social Enterprise Boost Initiative (SEBI), a project of the JN Foundation and the USAID. Bresheh is part of SEBI’s Accelerator Programme, where entrepreneurs are being targeted to further enhance their social businesses.

Three years after establishing their social enterprise, Randy and Davian McLaren, operators of Bresheh, a company, which manufactures local customized bags, have launched their new line of bags called “Roast by Bresheh.”
The new bags were officially introduced to the market on Thursday, September 27 at the Opa Greek Restaurant & Lounge,at Devon House in Kingston.
Randy McLaren, co-founder and managing director of Bresheh, said that the bags are targeted at corporate Jamaica and young professionals, who want fashionable bags.
“It satisfies their professional needs, in terms of holding everything that they need to carry from home to work and travelling, as well,” he explained. “For example, if you have a conference out of town, you are able to pack an overnight bag with items; and,if you are travelling overseas, it has compartments for your passport and laptop.”
Mr McLaren said this collection is different from Bresheh’s other bags, in that, it is more functional; it has more compartments and the designs are very different and more detailed.
“The finishing is different,” he pointed out, “And, a lot more work has gone into the design and its overall appearance. The bags are made from vegan leather, quality material, which will last up to 10 years and more without stripping.”
The collection allows room for customisation, as companies can print their logos on the bags; or, for an individual, their names.
“The collection is influenced by our culture, in the sense that, we borrowed from what a roast breadfruit looks like,” he explained. “The inside of the product is cream, mimicking what the inside of a breadfruit looks like, and, the external colours are brown, black and grey.”
McLaren said that during the past three years, the enterprise did well, despite challenges.  “We now employ 10 persons, moving from a team of two; as well as, we have relocated from a smaller verandah to a more spacious location in Cumberland, Portmore, St Catherine.
“Awareness of the brand has grown,as well as the impact we have been able to make. We are now even more inclusive in the way we employ and plan to employ. We having people, single mothers, rural residents, as well as individuals from the deaf community,” he explained.
A participant in the Social Enterprise Boost Initiative (SEBI) accelerator programme, McLaren said that SEBI assisted with their employee’s training and development and equipment upgrade.
“SEBI’s workshops brought in different professionals, who expounded on management and production topics; otherwise, we would not be able to find funds to gain expertise and knowledge. SEBI gave us access to different markets, teaching us to network and build awareness for the brand,” he related.
The Social Enterprise Boost Initiative is a project of the JN Foundation and the USAID. Through the Accelerator Programme, entrepreneurs are being targeted to further enhance their social businesses.
Opal Whyte, project manager of SEBI, expressed pride in the growth of Bresheh. She commended the operators of the social enterprise for their achievements in their three years of operation.
“The growth of Bresheh is phenomenal. It is like watching a young child blossom into an adult and contributes to making an impact on our society. We are proud to be associated with this enterprise. We see Bresheh contributing much more, as it continues to grow and become an international brand,” Ms. Whyte affirmed.
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Dionne Rose| Communication Officer