Christmas
time is one of the most financially stressful
times of years for everyone. ALOVE spoke to
Richard Hunter, a financial and investment
advisor, to find out how young people can
be aware of some of the financial traps around,
and help their family be careful though a
dangerous time.
Can you tell us
a bit about your work and what you do from
day to day?
I am an independent investment advisor and
I have the privilege of looking after some
very VERY rich people.
Why is Christmas such a stressful time with
regards to money for both the young and old
alike?
You have no idea how much you're going to
spend this Christmas unless you have budgeted
in the past. As a quick test, add up all the
extra things you think you will need to buy
this Christmas - and then when you have arrived
at a number - double it ! That's what it is
likely to cost if you are not strict with
yourself.
What advice would you give young people with
regards to their finances at Christmas time?
This Christmas, get a little note book, and
write down EVERYTHING that you purchase as
you go along, day by day, from now to Christmas.
One; it will give you an ongoing account of
what Christmas is costing, and two; knowing
how much this year has cost you, will probably
motivate you to start saving a little earlier
next year. Or even begin in January - £10
per month means you will have £120.00
to hit the shops with next December.
How does your Christianity
inform and influence the way you spend your
money?
As Christians we are required to be good stewards
of ALL God gives us, and that means: Be wise…
Why is debt becoming
such a massive problem in the UK?
Not many people are being wise I’m afraid.
More and more people are choosing not to save,
and are spending every penny they have on
things that go down in value. By that I mean
most things that you can buy in a shop! What's
even worse is, people are spending more than
that, and are readily choosing to go into
debt to buy things that go down in value.
Doh - not wise!
What is the main
thing young people can do to keep from getting
into debt?
Keep a notebook and record over a month just
how much you spend. You'll be surprised. Don't
forget to do it - even for that sneaky little
Mars you just popped into your bag. WRITE
IT DOWN! That'll give you a clearer picture
so you can begin to make some informed decisions.
What advice do
you have to give families who are heavily
in debt at Christmas time?
Be creative this Christmas. Make your Christmas
presents and find free things to do. Depending
on how much debt you are in, you might even
consider getting some extra work during the
festive season. Shops and markets usually
need extra staff at this time of year.
Should credit cards
be off-limits for young people?
As a general rule: Yes. Sorry, but they just
create bad habits. Get yourself into good
disciplines, and then when you do get one
(as most people do), you'll find they can
be very helpful.
Is there anything
young people can do to help those in severe
debt at Christmas as a social action point?
The problem with debt is it's very embarrassing.
No-one likes to admit they are in debt, and
so most people suffer in silence.
How can young people
help their family from getting into debt problems
at Christmas time?
Agree a family wide present budget. Discuss
it within your immediate family and agree
something that works for you. Then present
it as an option for the wider family. If you
know there are debt problems, always try to
create ways to release the pressure on a person,
without making them feel small. Be sensitive,
and if you can afford it, be generous, but
most important this Christmas time, remember
to love each other because people are more
important than presents, and freedom is much,
much better than debt!
