With Namibia’s household debt having increased over the years, Bank Windhoek advises clients to manage their finances wisely by drawing up an annual budget.
The executive officer credit, Anton Smit says the purpose of a budget is to formalise the management of one’s finances and to have a clear picture of how much they earn as a family and how much they spend on their income and expenses.
“To be able to draw up a household budget, one must first understand the needs of all household members, including their children. Involving children in the budgeting process fosters a culture of budgeting and saving at a young age. Children will also less likely ask for any goodies outside the household budget if they know what it includes, as well as its financial limits and goals. Budgeting will also teach children that they cannot always have what they want when they want it, as that money should be put away to save enough to buy what they need,” Smit explains.
Each household budget differs from family to family, depending on their lifestyles but Smit is of the opinion one must draw up a budget that works for the family and include all expenses from groceries, water and electricity bills to clothing, outings and car maintenance.
“Ensure to include savings for unexpected expenses as well as unexpected increases in interest rates on a house mortgage, car payments, food and fuel prices.”
According to Smit, such budgeting not only helps families to manage their finances wisely but to plan for unforeseen expenses. He thus says Bank Windhoek has solutions such as SureSave, Call Deposit, Notice Deposit and Fixed Deposit that can help curb every expense.
“Bank Windhoek’s wide range of savings and investment solutions gives customers the opportunity to start the year on a clean slate and make their money work for them and for their families to be financially sound. Managing one’s finances wisely also helps them build a good credit history with the bank, which will come in handy in future when applying for credit such as a study loan for a child.”