Jennifer Clarke-Twiddle, Business Relationship and Sales Advisor, JN Bank
With some families experiencing financial challenges as an outcome of the COVID-19 pandemic, a banker is urging families to be prudent in the management of money, as financial problems often become a source of disunity in the family.
“Live within your means. Never be tempted to try to ‘keep up with the Joneses.’ Sometimes, you waste money on things you really do not use or enjoy, just because you want to put on a show,” said Jennifer Clarke-Twiddle, Business Relationship and Sales Advisor, JN Bank.
Mrs Clarke-Twiddle was addressing the St Andrew-based Church of the United Brethren-Faith congregants under the theme, “Financial Management in the Family,” via live stream on September 11.
She cautioned the congregants not to attempt to emulate the lifestyle of their friends or neighbours to the detriment of their finances.
“Do not borrow to supplement your income. Instead of putting yourself into debt or using up your savings to be on par with the ‘Joneses,’ be content with what you have now, and work towards achieving what you hope to get.”
Her advice comes against the background of a report from the Caribbean Policy Research Institute (CAPRI) in July 2021, which found that the earning capacity of some Jamaican families have been negatively impacted by the pandemic. The report highlighted that 57 per cent of Jamaican households saw a reduction in income between the onset of the coronavirus pandemic in March and September 2020; and some 40,000 households sought government aid, which is five per cent of all households.
The banker opined that the numerous counsels in the Bible on managing money could benefit families if heeded. In reference to Ecclesiastes chapter 11: 2, she underscored the importance of families diversifying their investments.
“It’s a basic principle of investing that the more you diversify, the more you will reduce your risk. Never put all your eggs in one basket,” she advised.
Mrs Clarke-Twiddle further encouraged the congregants to prioritise and exercise self-control when spending. She recommended the use of a budget to easily identify incomes, expenditures and items for which spending can be reduced, thereby enabling them to allocate more funds to their savings.
“It doesn’t matter if your family’s income is large or small, we have to manage it well, so that it can serve us. The income we get should take care of our monthly expenses and leave some for a rainy day. One of the things which most persons make the mistake with is that they believe they don’t have much money to save. Start saving towards retirement from the first day on the job,” she admonished, while adding that parents should also encourage and teach their children to be thrifty at an early age.
She also emphasised that managing credit is a critical part of good money management skills.
“If you are going to borrow, you must have a plan for how you will repay. When borrowing, shop around in the same way you’d shop around when you’re purchasing schoolbooks, or a new fridge or stove. Compare the interest rates, the processing fees, and other costs you may need to pay to get the loan. There are institutions which may promote a low interest rate, for example, however, their cost to process the loan and other fees are very high. And those fees virtually eat away the low interest rate they were providing in the first place,” she advised.
She also emphasised that credit cards are often a major source of debt for many persons because they do not understand how to use it. She informed that one can minimise the risk of credit card debt by paying the bill in full every month, or as much of the total as possible. Pay the bill on time, and only using your credit card for essential items.
