Money Management Skills are for Everyone

    

The skill that all people should master is money management. Individuals go through life not knowing how to manage their money. You might ask yourself, “Why should people possess these skills?” Simple, look around, see if you can find somebody that is in poverty, and you won’t have to look very far. When individuals possess money management skills they can provide themselves with a number of ways to improve the quality of life and maybe even pass those skills on to somebody who needs them.

          People who do not have the skill of money management tend to put themselves in an unhealthy state of life. When a financial crunch occurs people can expect themselves to be looking at possible lawsuits, payroll garnishment, and a constant stream of creditors harassing the individual by phone or mail. These events then make the person stress out, and in turn could lead to the loss of things that they dearly cherish in life. Though, budgeting can prevent this.

     A person who knows about money management will be able to avoid putting him or her self in a financial burden. When people don’t budget they make mistakes of spending too much money and not saving enough. By saving money they prepare themselves for situations like education and retirement. Education or retirements are two reasons why people should have money management skills, and that is so they can budget for the future.

     With financial security in place, new investment’s can be made to help continue a “normal” life, e.g., a college fund would be needed if you have kid(s), or plan to have a kid(s). Providing the college fund will increase the quality of the student’s life and help them with their money management skills. Providing education helps younger siblings gain financial stability, and other opportunities.

     Money management skills not only can help to save money for education(s) but also provide a positive gain in the current financial situation. Of course individual business ventures will be different from each person. Maybe they could sell items on Ebay, or sell products at a flea market. Whichever business venture is chosen, the individual must possess some kind of money management skills to turn a profit.

     It is this profit, this financial gain that can make the difference of staying in or getting out of poverty. Just because one person is in a state of poverty doesn’t mean that money management skills wouldn‘t help them. Money management skills can provide prevention of foreseeable debts to insure financial security.

     Money management skill’s not only will help financial security of the poverty stricken, but also will help every individual to plan for  retirement. As the years pass on, and talks about how Social Security Income might not be available to future citizens. Even if one person does receive Social Security, their income will be in short supply.

      Retirement, being a time when a person does not have the means of working, desperately needs money management skills. Rich or not, there are always unforeseeable financial hardships. “What is more difficult to anticipate, and therefore plan for, are the unknown costs of obligations to aging and elderly parents.” (Wassel, 2006). Elderly can benefit from money management skills because as the years go on inflation goes up but the income does not. Provided they had been educated in the skills of money management, they will have a better chance of survival.

     Who does not want to survive financial hardships? Hardships can cause marital relationships to sub come to divorce. Twenty-three percent of relationships that end up in divorce list money as the main reason for separation. (Journal of Financial Planning, 2006) With both life partners knowing about financial management, it can help to expand a budget instead of couples doing their own finances.

    Money management is the skill that everybody needs.  Grable, Joo (2006) suggests that college students take on normal and credit debit with the on set of financial stress and bad financial behaviors. Also he suggests that there is hardly any help to show students about correct financial management. If college students are having problems with financial management, then you can imagine how other individuals have a hard time dealing with it.

    

All you have to do is look at the broad picture and see that it is a win-win situation. Money management provides opportunity for education, enrichment of relationships, stronger retirement, and a chance to come out of poverty. There are a lot of reasons why people should master the skill of money management, but the one that is most important is that there are no downfalls to knowing how to manage money. Helping in the quality of life and knowing that financial security exists in the future, you the reader should understand why it is important for all people to master the skill of money management. Money management helps all human beings.

References:

Wassel, J. (Mar2006) Financial planning and the “senior sandwich” generation. Journal of Financial Service Professionals. Vol. 60 Issue 2, p22-26, 5p 1 chart.Grable, J. E., & Joo, So-Hyun. (Jun2006) Student racial differences in credit debt and financial behaviors and stress. College Student Journal, Jun2006, Vol. 40 Issue 2, p400-408, 9p, 4 charts.No Author (Jun2006) Financially clueless couples. Journal of Financial Planning. Vol. 19 Issue 6, p12-12,

 

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