Publish Date: 07/03/2019
What is financial literacy? It starts with credit, debt and savings knowledge
At some point, we all need to make important decisions about our personal finances. There is much to consider regarding our investments, savings, retirement, debt, credit, etc. It's therefore essential that we educate ourselves about sensible financial practices. This is called financial literacy - the knowledge required to be able to make sound and responsible financial decisions. It focuses on the ability to manage personal finance matters in a financially competent way.
Financial literacy includes key concepts such as budgeting and saving, as well as more advanced topics like compound interest and debt management. In this blog about what is financial literacy, we look at the role of credit, debt and saving in your personal finance plan.
Establishing a good credit profile
Establishing and maintaining good credit can lay the foundation for your future finances. Here’s a few tips for building good credit:
Although acquiring and using credit allows you to build your credit profile, taking out too much credit can get into debt trouble. If you are having issues managing your debt, consider a debt consolidation loan. Debt consolidation loans merge your credit facilities into one loan, making it easier for you to manage, saving you on fees and resulting in an overall lower cost of credit. Consolidating helps to make it easier for you to fulfil your payment obligations.
It’s certainly more convenient to make one monthly payment instead of having to service many different loans or credit cards.
Investing, saving and your retirement plan
How much you save or invest today can have an immeasurable impact on your financial goals, so it’s important to start early. For first-time investors, it may be a good idea to sit with a financial advisor who can help to put you on the right path. Here are a few things to consider regarding your investment strategy and planning for your retirement.
Find out more about saving with African Bank’s Access Accumulator account.
Are you financially literate?
Good financial literacy helps to ensure you have a short-term view and a long-term view of your finances. Figure out if you are financially literate by answering these questions:
If you answered no to two or more of the questions above, it might be time to do the work required to become financially literate. Thankfully, you’re in the right place – start exploring the blog posts on the African Bank blog. We already have some of the answers for you!
About African Bank
Our mission is to be a successful Retail Bank offering a wide range of products and services to the consumers of South Africa. The people who work for African Bank represent the diverse population of South Africa; therefore we are a reflection of you, of all South Africans. We seek to provide value - more than our consumers expect of us. We promise to live our purpose 'humanity through banking' in all that we do and we are confident that we can, because 'We are You'.