If you are having problems controlling your debt, you may be like millions of others in that you simply have problems with money management. This is one of the most common reasons why some go into debt, and it is something that can be fixed. Not only is this a problem for those worrying about their personal finances; it can also be a problem for those who may be starting or running their own small business. It is something that seems to be ignored as we grow, and many have no idea what they are doing when they are on their own for the first time. Ian Bruce from James Milne Accountants covers some simple money management tips that will help bring your personal finances back under control.
One thing that should be taught more thoroughly in high school might just be money management, but this is something that usually falls on the parents. Those coming from a home in which money is not really a concern often think they can go about spending money like their parents do. What they don’t realize is that their parents have the money, and the children are probably not making nearly as much as they should if they wanted to match their parents spending habits. Money management is a concept they may not know much about, so they make very simple yet costly mistakes.
Parents in any income bracket can teach their children more about money management, and should not be something that is optional. Simply giving children an allowance can help, as long as you teach them what to do with it. Even at a young age they can learn to save some for the long run, save some for a bigger purchases, and then enjoy a little of it on whatever they want. When you teach children how important and satisfying it is to save up money, they have learned something valuable to take with them into the future.
Another big key to money management is the budget, and this is something children can learn as well. The lessons will be better received when they are older, but you can start with this at any time. Learning to put money where it has to go first and then spending what is left on non essentials is a good lesson to learn. Children should also learn about credit cards, and what they mean to money management. To them, it seems like free money, but these are the reasons why so many go into debt. Do them a favor and teach them the right way to handle their money.