“How different would the financial landscape of our communities look if institutions endeavoured to provide adequate education around saving and investments when graduates enter the job market, instead of making credit cards and personal loans so easily available once the first paycheck is issued?”
This was one of the questions posed at one of our recent financial coaching workshops.
This question struck a chord with me as once again I realised how easy it is for people, particularly recent school and university graduates, to get sucked into a cycle of debt. Most students graduate from their respective institutions already indebted in some capacity as most require financial assistance in the form of student loans to cover their tertiary education fees.
In addition to the repayment of student loans, it is also abundantly clear how little graduates understand regarding the acquisition of credit cards and personal loans, and the repayment structures that each entail, as well as the consequential interest rates attached. This is largely due to a certain naivety and lack of financial education as well as the cleverly worded fine print attached to such transactions by the financial service providers.
The relative ease in which credit can be acquired – whether through a bank-affiliated credit card or store account, means that people often get caught out and end up having to repay large amounts of interest on top of their original expenditure or end up indebted and at the mercy of debt collectors. I have seen ‘coachees’ in situations where more than half of their monthly earnings are having to go towards paying off existing debts either from credit cards, store cards, personal loans or all of the above. This in turn means that there is nothing left over at the end of the month for important investments or savings. Living from paycheck to paycheck is far from an ideal financial situation and does little to ensure future financial stability.
At Flourish Business and Finance Coaching, we believe that the younger you embark on your journey to financial independence and stability, the better, and in order to do so – education is vital. Through our financial coaching programs and sessions, we educate graduates on the pitfalls of credit and debt, on how to budget and save, as well as the importance of retirement planning, investing, and future-proofing their financial wellbeing. Through our finance coaching, graduates can expect to establish and implement a well-designed and sustainable financial plan aimed at creating good money habits.
We are not financial advisors – we do not sell financial products as such, our focus lies in support and education in order to create financially savvy and independent individuals.
For more information on the finance coaching process and programs available as well as the benefits of financial coaching, please contact us at firstname.lastname@example.org, and let’s get your finances flourishing!