As a wealth accumulator, or at least a should-be wealth accumulator, I was a little horrified last week when the credit card I had applied for arrived with an un-asked-for $25,000 limit.
Now the previous card I have has a much lower limit, but still higher than I had originally wanted. I have gone over the asked-for limit but never quite hit the highest limit. I like shopping and find it difficult to discipline myself to a budget, which is why I have a financial planner.
I think gen Xers like me are happy to pay for advice, including budget suggestions, so that eventually we have large sums to invest and do interesting things with.
I think it’s important for the financial planning associations to look at the issues that affect the financial health of the community and actually come out against banks being too easy with their credit limits, and letting people get into positions from which they find it hard to pay their way out.
Banks should be made more responsible for their actions and financial planners should establish a voice from which they can criticise institutions that aren’t.
If financial planners engendered a more positive reputation through promoting themselves as financial health commentators in the media, it would benefit the whole industry.
As last week’s “On the Record” subject, financial counsellor Margaret Kilby, found, “a few basic financial habits done regularly can make a difference”.
Kilby counselled people on how to regain control of their lives financially. However, while the Financial Literacy Foundation targets people about their financial literacy, someone needs to target those taking advantage of people who are financially illiterate. It’s not quite ASIC’s responsibility.
