Essential money lessons for a brighter financial future

GROWING up, many of us received sound advice from our parents: study hard, set goals, and take care of your health and money. This advice serves us well, but when it comes to our money, some more detail and some less conventional truths can go a long way towards a brighter financial future.

- MELODY CLOETE

Here are some insights to help reshape your financial perspective:

Not all debt is bad

The word debt often carries a negative connotation, but not all debt is 'bad'. Before borrowing any money, it is critical to understand the difference between 'good' and 'bad' debt. For instance, taking out a student loan can be an investment in your future, but paying off unnecessary, high-interest credit card debt can hinder your financial progress. How you manage your debt, as well as other financial commitments like your phone and gym contracts, is also important. Making your payments on time and in full every month helps to build a healthy credit history, which in turn will stand you in good stead when you need a loan for something 'good' like a car of your own.