For some or most of us, financial products are essential in our everyday lives especially our bank accounts where we manage our money. Even financial products like insurance are fast becoming products that are must-haves in our lives, be it for ourselves or for our families.
It is wise to find out about the various financial products, their costs, risks and characteristics before making a decision to purchase or own them.
Below are some of the commonly purchased or used financial products that will be essential for you to learn about:
Banking and Cash:
Almost anyone would have a bank account or several bank accounts. This is the most convenient way to manage your money instead of keeping wads of cash at home. With a bank account, you can keep track and be on top of your cashflow, savings and know exactly how your money is being used and spent. This is usually through bank account statements that can either be paper statements or electronic statements.
Other than a bank account and cash, other banking services and products may include Overdrafts, Cheques, Credit Cards and Giro services.
What used to be a taboo product or topic is now so common that people are actively looking for insurance agents or financial planners to help them plan and purchase financial protection plans and insurance coverage. Many Singaporeans do realise the importance of having coverage against unforeseen or sudden events which may cause them or their dependants financial losses.
Credit and Loans:
Credit and loans may seem to be totally different products to consumers and users. However, loans, credit card usage and overdrafts are simply various forms of borrowing money. Whether it is taking out a loan or using a credit card, always bear in mind that most of these services come with interests and may be really costly to bear.
There will come a time or age that you will start looking at investing your savings. Investment itself is a skill and does not come overnight. Always do due research and make sure you learn about the various investing concepts and also the risks involved when investing. Whatever investment you are interested in doing, make sure you understand exactly what you are investing in and consider if you are able to sustain yourself financially if your investment were to fail.