They Will Finally Understand That Money Is A Necessity And Not A Luxury

Category: Finance, Credit.

The age of sixteen marks a turning point in every person's life. Soon they will be completing high school and will be ready for college.

At this time, they are made to start managing their own finances. Some of them might even take up jobs and begin to take care of their own expenses. Parents sometimes follow the practice of giving pocket money to their children. Thus, it becomes important for children to learn about finance right from the time when they are in school. Most often, this allowance this could be given to them on a weekly or monthly basis. This constitutes the first step towards comprehending the value of money.

In most families it is seen that once a child runs out of money, he will approach the parent for an advance. Young people learn the value of money through the practice of taking an allowance. This is what allows them to understand the concept of saving. They learn about how much they should spend and what they should be saving. They come to realize that accumulating savings will give them the bonus of having some extra money when their friends have all used up their pocket money. They finally begin to understand that they can achieve a lot more if they are careful with their spending.

Once the value of money has been understood, young people become responsible almost instantly. If on impulse, they spend all their money on a music album or a tennis racquet, they will realize that their savings have been depleted. This will teach them to cut corners and use their money in a wise and prudent manner. After such an impulsive buy, they will have to wait till it is time for their next advance. Also while applying for colleges, parents should guide their children and help them understand the fee structure. They will then realize that higher education does not come for free.

Students should be told about education loans and familiarized with the processes of applying for these. Paying for a degree is not a cake walk. They will learn to approach banks for educational loans, and will look around for part time opportunities so that they can immediately begin to start loan repayments. They will finally understand that money is a necessity and not a luxury. This gives them the independence and freedom to do what they enjoy and act as responsible adults. They not only manage their own finances but have also learnt how to save and indulge in things that they have their hearts set on.

These days, young students are much smarter than they often get credit for. They will also realize that they need to manage the funds on hand, and start saving up for the future. The young people of today are well aware that they need to start behaving responsibly from a very early age. If they want to party, or go out with friends, they will consider the money that they have, will calculate how much they can spend, and will act accordingly. The spending habits of many young people reveal this maturity.