It is important to be financially literate as a homebuyer especially with "The Time for Giving" fast approaching - which can put a lot of pressure on your pocket. This time of the year can be challenging for most people as it requires careful decision-making when it comes to mindfully spending money. This is when financial literacy skills become critical especially when you are planning on buying a home, over and above other existing expenses required to manage your home effectively.
What does 'Financial Literacy' mean?
Financial literacy means being able to set and stick to one's financial goals, plan and monitor one’s personal spending. This includes managing existing debt – how much you pay for, and how often you pay, your bills.
Homebuyer financial literacy is key, as your personal spending, and debt management habits pave the path to you receiving that much-needed loan from accredited lenders and banks, in order to buy, renovate your home or build an ADU (Accessory Dwelling Unit).
Your spending habits, and how you manage debt, have a huge impact on your financial track record or Credit Score. The Credit Score becomes very important when seeking to finance a significant purchase like a home or a car. Your Credit Score is what determines whether you receive the loan you are applying for.
Therefore, be wise and become a financially literate homebuyer today. The earlier you start your financial literacy, the better off you will be, because financial education is the key to success when it comes to accessing money for major projects.
Author: Mpume Nyandu - Director: Stakeholder Relations at HPP Cares (CDE)
For more on homebuyer finances visit: https://www.hppcares.org/finance.php
Look out for our next Blog on what a Credit Score is, and how it is calculated.