For each one of us, not only are our fathers the strongest and the best, they are also the go-to person for all things related to our personal finances. Whether you have a doubt about where to invest; are unsure about the merits of a loan; or if you need an extra credit line at the end of the month, you know who to call.
Indian parents have always been financially prudent and there is a lot that one can learn from their father in terms of financial management. Here's a roundup of some valuable lessons one can learn from our fathers, by CRED, a transparent and fully digital credit card payment platform.
Practising financial self-reliance: With steady income comes the ability to be independent, however one can't be wholly independent unless they are equipped with financial know-how. While it is good to have someone to turn to for advice, it is even better to become self-reliant by taking the initiative to understand how to manage money, do's and don'ts, how to smartly use assets such as credit cards, and make smart investments.
Be smart and keep an eye out for saving early on: Every father knows the merits of saving which is a key reason why they always stress on the importance of starting to save from an early age itself, even if it is a small sum. It further instills a sense of responsible financial behaviour which comes in handy when one starts adulting and using a credit card. After all, a penny saved today can easily turn into a fixed deposit in a few years. Or money spent wisely on a credit card today, can earn you some amazing rewards tomorrow.
Pay on time or pay a fine: Punctuality in general is a great quality to have, however in case of financial matters it is of utmost importance, more so in case of credit card bills and EMI's. Banks and other institutions often charge a hefty amount when credit cardholders fail to pay the minimum due amount in time, and late payments have a direct impact on the credit score.
Knowledge is power: Rarely would you have seen your dad jump into something without due diligence, especially matters related to finances. Before making any investment they spend hours reading and comparing, which highlights why one should ensure financial literacy is on point. The same applies to owning a credit card as well, as without a thorough understanding of the hidden charges, you could be looking upon extra charges upon charges. Also, do your research and find out about the rewards and benefits of the credit card you have so that you can make the most of the money you spend.
Planning ahead of time: Ain't no planner like a father! As safety and security of the family is of paramount importance, our fathers always ensured that they planned their finances well in advance, and followed the set budgets to bring their planning to fruition. This is a lesson that every child should learn from an early age. Start planning for smaller things in life so that it becomes a habit when you have to make bigger financial decisions. This is especially true for credit card expenditure, keep in mind any upcoming big payouts so that you have no surprises with the credit limit last minute.
Reading between the lines: Any time you look at a bill, take your time and go over it in detail. This especially holds true for your credit card bills, which may contain extra hidden charges. Whether it's your credit card statement or the electricity bill, it does one good to be cautious and check the numbers twice.
These simple yet important financial lessons can be incredibly effective in slowly creating personal wealth as you move along in life.