For many adults, parents and older family members were the first people when they were younger to advise them about things such as applying for credit and taking out loans.
“Depending on the advice given, one can often trace how it has impacted the way you save and spend money?” says Alfred Ramosedi, African Bank Group Executive: Sales and Marketing.
In honour of Father’s Day, Ramosedi, himself a dad of three children, provides the following three quotes many of you may have heard your own father say when you were younger and a few ideas for how to apply them to your life:
- “Money doesn’t grow on trees.”
Did your Dad ever use this line after you’d asked him to buy you a pair of shoes or for permission to buy a ticket to a social event? Growing up, you may not have understood this, but now that you’re earning your own money and have certain responsibilities, you’ll know that there really isn’t a money-growing tree and that the general idea is to spend less money than you earn and maybe even to save and invest some.
- “Being in debt is bad.”
Not all debt is bad. Most people have a bond for their home which is largely unavoidable. People apply for a loan for different reasons such as an educational trip overseas for their child, to advance payment for their car or for home improvements. When you apply for a personal loan, the bank performs a background check on you to see if you do qualify for the amount you initially asked for. If you qualify for less money, you may only receive the money the bank thinks you can afford. If you already have multiple forms of debt then you may be advised to apply for a debt consolidation loan which will help you combine your debt into one repayment.
- “Say No to credit cards!”
This is a favourite quote we hear often from the older generation. The reality is that if you’re disciplined and you pay the money back each month and don’t spend unnecessarily then you shouldn’t have a problem with using your credit card. Credit cards can save you a lot of time when making a purchase and you don’t have to carry cash around with you when you have this card.
Ramosedi says it is always important to do research and acquire advice from those more experienced than you when making decisions that could potentially have long-term consequences.