Follow Your Money: Debit Scores: Track Your Growth, Not Your Debt (only).
Issue 4: Measuring & Rewarding Progress Over Perfection
Hi friends,
Happy Tuesday. Welcome to Issue 4!
Last week, we talked about training our brains to reward progress over perfection. ✨
This week, we dive into an unpopular area—debit scores! The hope is to inspire a new code of measuring our financial worthiness, one that rewards progress over perfection. Lessgoo! 🚀🚀
Let’s keep it real, whether you're a master of personal finance or just starting to dip your toes, debit scores probably sound foreign, unlike credit scores. 🙅🏾♂️
But here’s the catch: 🤌🏾
You see, credit scores are like your social media followers. They're constantly judging your money moves. 💁🏾♂️
Apparently, these often 3-digit numbers are meant to reflect your spending habits in the past, your reputation when it comes to defaulting on payments, and most importantly your likelihood of repaying back a loan/credit, should it be approved for you. 🙂
But contrary to popular beliefs, credit scores usually tell a single story🙅🏾♂️—though true, remains incomplete. We need scores that tell the whole story about our money moves. ✨
Yes, credit scores seemingly measure your spending habits but it’ll be good to be able to measure your saving habits, your ability to slay your bills, budget your expenses, save your money, and delay gratification. 💫
If a credit score measures your spending habits, then a debit score should measure your saving habit. 🤌🏾
Suppose there’s something like this, the difference between these two scores would be an ideal measure of your financial wellness.
👉🏾Last week, we talked about training the brain to reward progress over perfection.
Having a debit score is an efficient way to help our brains visualize progress. That way, the brain releases dopamine (which is associated with pleasure and motivation) every time the score increases. 🏋🏾
Debit scores, in this sense, are rewards for responsibility yet a simple Google search shows little to no results about debit scores 🙅🏾♂️ and honestly, maybe this is a cue to plug debit scores into Dot’s product offering—we’ll be thinking about it. 😉
In the coming issues, we’ll certainly explore ways to build a debit score.✨ ✨
That’s a wrap on Issue 4. 🤌🏾
FINANCIAL NEWS & TRENDS in AFRICA.
connecting the dots across frontier markets in Africa.
🎯Takeaway: Talk about credit & loans, you got it! You see loans tempt you with instant gratification, and a false sense of ownership until it’s payback time, and in Kenya’s case, things are about to get interesting soon —perhaps, a cue for countries to start building debit scores for GDPs? T’s the time! ⚡️
🎯Takeaway: At first, this is one of those cases where you have no idea whether 4.2% is something to rejoice or be worried about.
Well, in this case, the country’s GDP grew by 4.7% in 2022 so we already see the decline. Guess what, this decline has been attributed to issues with debt restructuring—another cue for country-based debit scores? 🤔
Mauritius plans to launch its own Central Bank Digital Currency (CBDC).
🎯Takeaway: After more than 2 years of testing the waters, the country is ready to get stuff done. Obviously, this is an exciting move but one that also calls for caution.
A CDBC in Mauritius will have a greater impact on the economy given the country’s state-of-the-art of Manufacturing sector.
But also, the country will have to accelerate its cybersecurity sector. In any case, keep your eyes peeled for Mauritius! 🤌🏾
🎯Takeaway: After talking the walk for more than a year, the country is finally about to roll its sleeves and start walking the talk.
The billion-dollar liquefied natural gas project is on track to make Tanzania a key player in the energy market. 🫡
If (and when) this goes through, this will certainly be a win not just for the African continent but the global West.👌🏾
MONEY TRIVIA
👉🏾Rearrange each row to form a word we’ve discussed today.
T B E D I
C E R S O
S N A L O
R E C D T I
RESOURCE LIBRARY
Opportunities
The Google Women Techmakers Ambassador program is currently accepting applications. ✨✨
The Queen’s Commonwealth Essay Competition 2023 is now open for entries until 30 June 2023👌🏾
Freebies
If you’re stuck on a problem, Charly Wargnier has cool recommendations for you here. 🔥
This video is making everybody on the Dot team laugh so hard. Check out why. 😌
TRIVIA ANSWERS👌🏾
Credit.
Debit.
Score.
Loans.
That’s a wrap for this week and finally, here’s our QOTW. 👇🏾
If you want to be inspired, surround yourself with successful people. If you want to be educated, surround yourself with people who have failed. If you want to be educated & inspired, surround yourself with people who have failed their way to success.
“Success inspires. Failure educates.”- Ray Dalio.
Until next time,
Dulra.
Founder/CEO, Dot.❤️