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Here are some universal money lessons from dads that are sure to resonate with you if you are old enough to tread on life's path yourself.
Every father wishes the best for his child and to ensure that his offspring can lead life the best way possible, a father passes down lessons in frugality, discipline and hard work throughout his lifetime.
As a youngster, you often think that all this generic wisdom is something you can so do without, and you often tend to turn a deaf ear to all that he says.
That is until you step into adulthood and realise how true his lessons ring!
With Father's Day on June 19, it is time to ponder over the many lessons that he has taught you, especially with regards to your financial health.
To honour fathers across the world here are some universal money lessons from dads that are sure to resonate with you if you are old enough to tread on life's path yourself.
1. Save before you spend
Remember the first piggy bank your dad got for you and how he encouraged you to save every dime you collected from here or there.
Every monetary gift that you received as a child you father probably asked you to put it straight into your piggy bank. And when the piggy bank was full you would go and show him proudly how much you had saved!
Well, this early lesson your dad taught you, is indeed a lesson for life.
Saving is the number one mantra to achieve good financial health. As long as you are saving more than you are spending, you are not only keeping yourself safe from financial vagaries on a rainy day, but are automatically increasing your CIBIL score.
With a good CIBIL score of 750 and above, the doors of lenders will open up without hesitation, when you are in dire need of credit.
2. Do not take credit unless you need it
Fathers are usually known to encourage their kids to pay off their dues in cash as much as possible.
Though that idea is changing with credit and its usage being acceptable today, fathers of today are known to advise their kids to avail of credit only when a need arises for it.
If it comes to buying a gadget or a vacation with friends, your father will perhaps lose it if you tell him that you will bill that expense to his credit card.
Your father would perhaps admonish you and ask you to save for it out of your pocket money or earn it yourself by doing some odd jobs in your spare time. While you may resent him when he says that, it is indeed a valuable money lesson.
Too much of credit usage may not only lead to an over-leverage, it will also be detrimental to your CIBIL score.
When you avail of too much credit in too little time, your CIBIL score is dented on account of hard inquiries in quick succession. Besides too much credit will make you seem credit hungry making lenders wary of your credit worthiness.
3. Scan all your bills and CIBIL report carefully
You have perhaps seen you dad sit with all his bills at the end of the month and calculating his expenses, maintaining accounts and scanning through a wad of bills.
If he is a regular user of credit, he may also ponder over his CIBIL report once in a while and try to dint into you the importance of maintaining accounts and checking your CIBIL report periodically.
Do not ignore him when he ask you to do the same.
If you get into the habit of checking all your bills carefully whether they are your mobile bills or credit card bills, an error if there is one, will come to your notice instantly. Besides you will have complete control over your spending pattern.
Finally, your CIBIL report is crucial to your financial health. Therefore, you need to check it periodically to ensure that no errors or discrepancies have crept into it to avoid rejection of a loan or a credit card application when you are in dire need of the same.
Following these basic money lessons that your father has taught you will take you a long way in life and help you achieve good financial health and help you keep your CIBIL score high.
Lastly, and most importantly do not forget to thank your father for all the valuable lessons he has taught you, for it is his million dollar advice that will help you go far in life!
Photograph: Deepak Rao/Wikimedia Commons
The author is a credit expert with 10 years of experience in personal finance and consumer banking industry and another 7 years in credit bureau sector. Rajiv was instrumental in setting up India's first credit bureau, Credit Information Bureau (India) Limited (CIBIL). He has also worked with Citibank, Canara Bank, HDFC Bank, IDBI Bank and Experian in various capacities.
