Counselors who work with families know well how important it is for each member to be aware of how to manage money. Too many have grown up believing in credit cards and debts are now at a loss as to how to save money. It is important for them to understand that easy credit has not been the way of money management in years past. It only sprang up in the last fifty or sixty years, starting after the end of World War 11.
Before that, families struggled and bought only what they could afford. Sending children to college was often not even possible. There were much wider gaps between the rich and the poor. There were much less of a middle income group, and those were mainly those who knew how to save and to accumulate money and was on their way up the ladder of success; or they were from families who in the past had money but succeeding generations spent it unwisely and now had to keep up pretenses with less money.
How times have changed. From easy spending and plentiful jobs to unemployment, loss of securities promised on the job, and a bleak time indeed as is seen now worldwide. Families need to learn from capable money managers and from astute financial planners how to use money properly. The economical picture is beginning to slowly improve and and the real value of money need be relearned. In itself it is nothing but a bartering medium, an easy way of accumulating purchasing power.
Money was never designed to become a status in itself, but human nature with their boasting abilities and their need to be ‘somebody’ have used money wrongly. (We are all somebody with or without money, money is meant to only be a convenience.) How is it to be used wisely in today’s world is the question now being asked. To get an answer to that money managers have much to say, Family Life and Computer Science, a Texas agriculture service designed for 4-H use.
And where money is used, what better way to get learn about the right use of money than to get better acquainted with the value system of the this service club for youth. They show how to set up a budget, how to stretch what money is available, the importance of saving money, and of course, the need to pay creditors.
Teh following are take off thoughts generated from their four speciality groups: Budgeting is necessary no matter how much money one has. First the priorities, and no matter the size of the family, shelter, food, health care must be reckoned with. One cannot begin to save for college for toddlers when money is so scarce even day by day food, clothing, and absolute necessities take up every penny. While that is a dream of parents for their children, money matters are often more immediate than that.
Therefore budgeting must be designed for lifestyles. No budget will fit all. To begin budgeting, list all expenses that are fixed such as mortgage or rent, food for a month, utility bills, and subtract that against money coming in. What is left will be used for day by day necessities and those unexpected expenses. Some months, and this is hoped for, a little will be left over that can be put into a savings account.
Making the money go further and finding ways to utilize items already owned is extremely important when budgeting. The idea is to come out at the end of the month with money left over. Understanding the direct relationship between lifestyles and money is the key to better use of one’s resources. Waste not, want not, is the thought that makes budgeting viable.
Saving is a must. That will be the cushion to fall back on when those unexpected expenses come up. That extra school book needed, a trip with the classmates to a zoo, all these things cost money and are expenses that arise out of daily living and learning. Saving money and living frugally will makes these extras possible. Youth need to know and to understand this, and to see how giving up a Saturday movie may be put toward a far better and more rewarding type of entertainment, an outing with the class, etc. Everything matters where budgeting and money matters are concerned.
Equally important is paying off debts. These are owed, and while bankruptcy is common, it is good to know that what one owes should somehow be paid. This builds character and children need to grow up with this idea. If parents shrug off this important confidence builder, how will their children ever learn responsibility? And being responsible is what life is all about. Families and their future generations thrive on it.