Digital 2022: Ethiopia This page contains all the data, insights, and trends you need to help you understand how people in Ethiopia use connected devices and services in 2022. You’ll find our complete Digital 2022 report on Ethiopia in the “full report” section below, but let’s start by taking a look at the essential headlines for digital adoption and use in Ethiopia this year. ADVERTISEMENT Ethiopia’s population in 2022 Ethiopia’s total population was 119.3 million in January 2022. Data show that Ethiopia’s population increased by 2.9 million (+2.5 percent) between 2021 and 2022. 50.0 percent of Ethiopia’s population is female, while 50.0 percent of the population is male. At the start of 2022, 22.7 percent of Ethiopia’s population lived in urban centres, while 77.3 percent lived in rural areas. Note: gender data are currently only available for “female” and “male”. Ethiopia’s population by age The median age of the population in Ethiopia is 19.9. For additional context, here’s a look at how the population in Ethiopia breaks down by age group: • 14.3 percent of Ethiopia’s population is between the ages of 0 and 4. • 20.3 percent of Ethiopia’s population is between the ages of 5 and 12. • 11.3 percent of Ethiopia’s population is between the ages of 13 and 17. • 14.5 percent of Ethiopia’s population is between the ages of 18 and 24. • 15.5 percent of Ethiopia’s population is between the ages of 25 and 34. • 10.0 percent of Ethiopia’s population is between the ages of 35 and 44. • 6.5 percent of Ethiopia’s population is between the ages of 45 and 54. • 4.0 percent of Ethiopia’s population is between the ages of 55 and 64. • 3.6 percent of Ethiopia’s population is aged 65 and above. Note: percentages may not sum to 100 percent due to rounding. ADVERTISEMENT Internet use in Ethiopia in 2022 There were 29.83 million internet users in Ethiopia in January 2022. Ethiopia’s internet penetration rate stood at 25.0 percent of the total population at the start of 2022. Kepios analysis indicates that internet users in Ethiopia increased by 731 thousand (+2.5 percent) between 2021 and 2022. For perspective, these user figures reveal that 89.50 million people in Ethiopia did not use the internet at the start of 2022, meaning that 75.0 percent of the population remained offline at the beginning of the year. However, issues relating to COVID-19 continue to impact research into internet adoption, so actual internet user figures may be higher than these published numbers suggest (see here for further details). For the latest insights into internet adoption and use around the world, follow our regular Global Statshot reports. Go global: see how Ethiopia’s current “state of digital” compares with connectivity in other countries by reading our flagship Digital 2022 Global Overview Report, which includes hundreds of slides of global digital data, and our in-depth analysis of what these numbers might mean for you. Internet connection speeds in Ethiopia in 2022 Data

1. 2-1

2. McGraw-Hill/Irwin
Focus on Personal Finance, 2e
Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.
2 Money Management Skills

3. 2-3 Money Management Skills
1. Identify the main components of wise money
management
2. Create a personal balance sheet and cash
flow statement
3. Develop and implement a personal budget
4. Connect money management activities with
saving for personal financial goals
Chapter Objectives

4. 2-4
Objective 1: Identify the main components of wise
money management
 Daily spending and saving decisions are at
the center of financial planning.
 Decisions must be coordinated with your
needs, goals, and personal situations.
 Money management means the day-to-day
financial activities necessary to manage
personal economic resources, while working
toward long-term financial security.

5. 2-5 Components of Money Management
Creating
and
implementing
a plan for
spending,
and saving
(budgeting).
Creating
personal
financial
statements
(balance
sheets and
cash flow
statements
of income
and outflow).
Storing
and
maintaining
personal
financial
records
and
documents.

6. 2-6 A System for Personal Financial Records
Organized system of financial records provides a
basis for:
 Handling daily business affairs, including payment of
bills on time.
 Planning and measuring financial progress.
 Completing required tax reports.
 Making effective investment decisions.
 Determining available resources for current and
future buying.

7. 2-7
What to Keep in Your Home File
 Items you refer to often.
– Personal and employment records.
– Money management records.
– Tax records.
– Financial services records.
– Credit records.
– Consumer purchase and auto records.
– Housing records.
– Insurance records.
– Investment records.
– Estate planning and retirement records.

8. 2-8 What to Keep in a Safe Deposit Box
 Safe deposit box is for records and items that
would be hard to replace.
– Birth, marriage and death certificates.
– Citizenship and military papers.
– Adoption and custody papers.
– Serial numbers and photos of valuables.
– CDs and credit and banking account numbers.
– Mortgage papers and titles.
– List of insurance policy numbers.
– Stock and bond certificates.
– Coins and other collectibles.
– Copy of will.

9. 2-9
Records on Personal Computer
 Home computer.
– Current and past budgets.
– Summary of checks written and other banking
transactions.
– Past income tax returns prepared with tax
preparation software.
– Account summaries and performance
results of investments.
– Computerized versions of wills,
estate plans, and other documents.

10. 2-10
How Long to Keep Records
 Birth certificates, wills, and Social Security
information should be kept indefinitely.
 Keep records on personal property and
investments as long as you own them.
 Keep documents related to the purchase and
sale of real estate indefinitely.
 Copies of tax returns and supporting data
should be kept six years.

11. 2-11
Objective 2: Create a personal balance
sheet and cash flow statements
Benefits of these statements
1. Report your current financial position in
relation to the value of the items you own
and the amounts you owe.
2. Measure your progress toward your
financial goals.
3. Maintain information on your financial
activities.
4. Provide information you can use when
preparing tax forms or applying for credit.

12. 2-12
Balance Sheet: The starting point
Balance Sheet
A financial statement that reports
what an individual or a family owns
and owes; also called a net worth
statement or statement of financial
position

13. 2-13 Components of a Balance Sheet
 Step 1 – List items of value
– Liquid assets.
– Real estate.
– Personal possessions.
– Investment assets.
 Step 2 –Determine what you owe
– Current liabilities (< 1 year).
– Long term liabilities.
 Step 3-Compute your net worth.
– Assets minus liabilities=Net Worth
– Insolvent means liabilities far exceed available assets.

14. 2-14
Components of a Balance Sheet contd..
Ways to Increase Net Worth
 Increase your savings
 Increase the value of your investments
and other possessions
 Reduce amount owed

15. 2-15 Components of a Cash Flow Statement:
Inflows and Outflows
 Cash flow statement is also called a personal
income and expenditure statement
Step 1-Record Income
• Net income from employment (Net Pay)
• Savings and investment income.
• Other sources.
Step 2-Record cash outflows.
• Fixed and variable expenses
Step 3-Determine Net Cash Flow
 Use this statement as a basis for creating a spending,
saving and investment plan.

16. 2-16 Objective 3: Develop and implement a Personal
Budget
 Budget: is a plan for spending in the future,
such as for the next month. A budget helps
you…
– Live within your income.
– Spend your money wisely.
– Reach your financial goals.
– Prepare for financial emergencies.
– Develop wise financial management habits.

17. 2-17 7 Steps in the Budgeting Process
1 Set financial goals.
2 Estimate income from all sources.
3 Budget an Emergency Fund and
Savings.
4 Budget Fixed Expense.

18. 2-18
7 Steps in the Budgeting Process
5 Budget Variable Expenses.
6 Record Spending Amounts
7 Review Spending and Saving Patterns
 Review your financial progress
 Revise your goals and budget allocations
 Characteristics of successful budgets are
1) Well planned
2) Realistic
3) Flexible
4) Clearly communicated
(continued)

19. 2-19 Objective 4: Connect money management
activities with savings for personal financial goals
 Financial Statements and Budget allow you to
achieve your financial goals with
1. Balance Sheet: telling you where you are now
2. Cash Flow Statement: telling you what you
received and spent over the past month
3. Budget: How to plan, spend and save to
achieve financial goals

20. 2-20 Objective 4: Connect money management activities
with savings for personal financial goals contd….
 Changes in Net Worth result from cash inflows
and outflows.
– Outflows>Inflows
• Draw from savings or borrow
• Lower assets or higher liabilities
– Inflows>Outflows
• Put money into savings or pay off debts
• Higher net worth

21. 2-21
Selecting a Saving Technique
1. Write a check each payday and deposit
in a savings account
2. Use payroll deduction to deposit a certain
amount in savings
3. Save coins or spend less on certain items

22. 2-22
Calculating Savings Amount
To achieve financial objectives
1. Convert savings objectives into specific amounts
2. Use your savings and investments plans to grow
your money
3. Use time value of money to calculate progress
toward financial goals