Month of loans

Article by: Lerato Mafifi

January is known to be a month in which a large amount of people flood banks in order to apply for loans. Reason being that during the festive season people spend their money in a careless manner in order to keep up with the festive vibe. However this poses as an irresponsible decision, more especially if it is done as a reoccurring habit. The stigma that associates the festive season with over spending is one that has led a lot of people into buying things they never really needed in the first place.

Poor financial planning often leads to unnecessary spending. Resulting in consequences that could have been avoided in the first place. When adults make poor financial choices then those looking up to them follow suit. Children mimick almost everything that parents do. When children grow up in households that do not take finances as importantly as they should and are not properly advised in the future then they will fall into the trap of making the very same mistakes.

Budgets should be made even in December and families should stick to them irrespective of the festive season. Thulisile Dlomo applied for a loan at one of the Alberton banks on the 10th of January. When asked by a friend what the loan was specifically for she said she no longer has enough money to buy her children school uniforms seeing that schools are about to open soon. This is an alarming and unexpected reply coming from an adult however it does confirm the truth that where a plan lacks, then chaos is bound to follow.

During the month of December things that hold first preference like school fees, school uniforms, mortgages and other important things of value should be considered and settled before unnecessary spending begins to take place during the festive season. An attitude of avoiding unnecessary spending should also be adopted at all costs, this will enable individuals to avoid taking loans and falling into debt. If people cannot manage the money they already have in their hands, how then will they be able to responsibly manage money that they have loaned?