Many people struggle to manage their money

Many people struggle to manage their money. According to you, what skills are required for accurately managing money? Who should be responsible for teaching children these?

Model Solution

Perhaps the most poorly represented among the skills of today’s youth is how to manage finances properly. This would be a skill to prize because it would allow someone to make rational economic decisions, remain debt-free, and meet long-term goals. In this essay, money management skills will be discussed in the context of why they are important and who should initiate them for children.

Money management is essentially based on a few key skills. The simplest arithmetic skills form the basic qualification. One needs to know how to add, subtract, multiply, and even divide to calculate cost, save, or follow up on bills. A budgeting attitude also proves to be a central tenet in personal financial management as it calls for a practical budgeting draft that fits within one’s needs, wants, and savings towards optimal usage of funds. A person who cannot set a budget is likely to overspend and will end up in a state of being in debt and financial unstable. Lastly, financial planning skills play the centre stage in actualizing long-term goals. One should understand how interest rates, investments, and retirement planning can help advance saving and secure their future.

Money management skills should be taught ideally by both parents and schools. Parents will hold considerable influence since they can instil the lessons of money management through routine activities such as grocery shopping, budgeting for outings, or savings goals. Parents can set practical money skills in children through participation in such discussions. Schools can formalize this education by offering financial literacy courses or workshops so that children can learn the fundamental concepts better. Lessons can be structured and provide direction so that all children, regardless of background, have the essential financial skills.

In conclusion, money management is a highly sought skill that involves arithmetic, budgeting, and planning. Parents and schools should take this task seriously in order to bring a responsible generation into the world.

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