People go to school and graduate to get a job, right? That’s what they teach you. School is designed to teach you a specific set of skills in order for you to use those skills to find yourself a living. However, one of the more important things is not actually taught in school – managing money. A lot of financial educators, investors, and entrepreneurs are shouting for money management to be taught to young people. They just don’t get heard out.
Image was taken from Habitat Cabarrus | HabitatCabarrus.org Read: A Financial Advisor’s Personal Saving Tips To Achieve Financial Goals And Success
People who studied and took a course of personal finance are the people who can manage their money well. Most likely, they’re the only people who can have a clean and firm budget, who doesn’t straddle with their money, and they’re the only people who invest. So, what money lessons should you have learned while you’re in school?
Budgeting basics You might have an idea about budgeting but do you really know how it works? Yeah, you might know budgeting, how important it is, but are you strictly following it?
Today, a majority of teenagers don’t even have an idea on budgeting. Moreover, they probably don’t even know how to save! Money coach Carrie Friedberg says that when a teenager gets questioned where his/her money went, he/she should be able to discuss where it went.
The teenager has to be accountable and be able to report back to a teacher or parent about where that money went and what happened to it.”
If you’re experiencing money problems, then it’s probably just two (2) things: You’re either spending a lot more than your means or you’re not saving. Start by disciplining yourself and the people around you; spending habits tend to take complete control over people so, start it by containing yourself. There are actually a lot of budgeting tips and techniques you can try to look into as a guide which you can completely utilize for you to develop and hone your budgeting strategy/strategies.
Haggling and negotiating Negotiating for a better price is actually relevant. Moreover, it’s not just about haggling, it’s also settling for something the same at a lower price. A lot of people still think that haggling is being cheap – it’s not. It’s part of business and it can actually be a good skill in the corporate world.
Most people are still clueless on how to haggle unless they grew up in an environment where haggling and negotiations are normal.
In addition to haggling, finding the best deal for a certain price is also a skill that is not taught in school. You need to be familiar with these so you need to practice. You can practice by trying to haggle in local markets about prices for local goods, or you can haggle prices of online sellers. These are effective ways on how you can hone your negotiating techniques so you can prepare for the real world of haggling and negotiating.
Read: Tips for Car Loan Approval and in Managing your Car Loan
The importance of paying yourself first Some people think that their monthly obligations are a priority. As a matter of fact, their priority should be themselves. They need to value the fact that they have to pay themselves first and to set a savings account up.
It’s understandable that setting up a savings account might be a little bit difficult for teenagers but having a good stream of income could extremely be useful. To have ideas on what other things you can do, we have a few guides to help you obtain an idea or two on what other income-generating activities you can try.
Some teens have on-the-side jobs which can be beneficial because it can give them some sort of an income for something like a vacation, something they need to buy, etc. If teenagers can do it, why can’t we, working people do?
Dangers of debt Debt can be seen or heard everywhere. As a matter of fact, a high percentage of people live on debt – credit cards. Although we’re not saying that it’s totally bad to have a credit card, it’s not just good practice to pay off something first than yourself.
Debt has interest and interest is something that you haven’t even held. So, paying with interest makes debt a lot more deeper than the usual. This is why most people need to know the correct management of debt in order for them not to be succumbed into this habit altogether.
One thing to always keep in mind is to always live within your means. It’s nice and fine to treat yourself every once in a while but if you experience it a majority of the time then that’s already incorrect.
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Wise borrowing No one ever said that borrowing money is wrong. It’s fine as long as its moderated and as long as it doesn’t interfere with your daily expenses and as long as you don’t substitute other things for your budget for food and livelihood.
Wise borrowing is when you have a debt that you use in order for you or your business to grow. Moreover, wise borrowing is one way of making sure that the money that you borrow is going to be utilized in a way that it’ll benefit your a multitude of times.
We need to erase the stigma of borrowing money as the worst thing ever – it’s not. Borrowing money is a normal thing and it sometimes is a business strategy which can turn the tables of any business.
Read: Citibank Personal Loan: How can I Apply?
Borrowing money is normal and it’s often taught as one of the more important money lessons Almost all people borrow money; businesses borrow money, it’s something that is existent because not everyone has the capacity to have a sufficient amount of money a hundred percent of the time.
Moreover, having a good credit score reflects on your paid debts and can even get you somewhere you want to. So, manage your debts wisely and build up a good value of your credit score. This way, you’ll have access to many different financial plans and promos in the times you’d need it.
There actually are a lot of money lessons you were not taught in school and it will slowly be eating you alive if you continue living your life without having a good financial standpoint. So, start now, invest, save money, and always remember to live within your means
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