Young people and managing money

Young people are often believed to have no money management skills at all due to the fact they're young. Being young doesn't mean that you can't or shouldn't posses skills in managing money; it makes it vital that you have this capability. The younger a person is when they begin to manage money the easier their life will be.



Think about it when you can manage money you can control your life in more ways than one. Proper money management means the bills are paid, saving is acquired and you can enjoy yourself every once in a while. What else has such amazing benefits?



Children often begin with allowances as their only income since the law requires we reach a certain age to begin working. This is the perfect time to begin with the teaching of money management. Children's allowance shouldn't be more than you spend on them for items such as clothing or entertainment. Setting allowances by these figures will help to keep them within a budget.



When your children see something they want that is beyond the means of their allowance make them save for it. You can go ahead and buy it, just don't give it to them until they can pay you for it. This will reinforce the idea that you have to pay for what you get and be responsible with your money. Learning that you have to wait for things is a big lesson when it comes to managing money especially when you're young.



When young people are skilled at managing money they can begin their savings early and set realistic goals for themselves. Proper money management by young people can make their college years when they are often away from home for the first time easier. While some college students are supported by their parents during the college years some have to support themselves.


SOURCE:
http://www.helium.com/items/1339384-managing-money-when-youre-young