How to Develop Good Money Management Skills

Strategies for Teaching the Now Generation Good Money Management Skills

The now generation is one which does not care much about where the money they spend comes from. It may be that they have parents who provide them with money and their everyday needs, but who also fail to advise them on how to manage these resources. The few of them, who live on their own and earn their own income, also do not delight in learning about money and how it can be managed. Thus, we now have a generation of impulse “spenders,” who do not possess the requisite financial and money management skills that are essential to the financial well being of individuals and the society at large.

However, this generation can be easily transformed into individuals with good money management skills if we put in place the following strategies, detailed below:

– Making Financial Studies Compulsory

It will be very helpful if financial studies can be incorporated into schools as a core subject. Student will then learn the essential rudiments of personal finance and will not have to rely on their parents who do not get enough time to be with them. Students can be taught balancing of checkbooks, budgeting strategies and overdraft protection.

They must also be introduced to the financial twins (credit and debit), and made to know the merits and demerits of using a credit card and/or a debit card.

– Constant Reading

If the now generation is to become financially savvy, then we must make readers out of them. Parents must try as much as possible to inculcate reading habits into their wards from childhood, so that they may grow with it. This they can do by buying their kids a wide variety of books, and rewarding them if they are able to read them. Then, as they grow older they can be introduced to self help books on personal finance and money management.

Moreover, the government can organize free seminars to educate those who are already grown on personal finance and management strategies. In addition to providing this, they could also ensure availability of self help books at public libraries for them to read.

– Establishment of Help Centers

If possible, the government can also establish centers where citizens can go to receive free advice on money management and personal finance. Since, the financial well being of the society depends on that of its citizens, it will be a fruitful investment by any government.

– Payment of Special Bonuses

Governments can also give special bonuses such as tax holidays and cash rewards to individuals who manage their money and finances well. It will be a motivation for everyone to show an interest in learning money management skills. The government can easily monitor individual’s financial data such as amount of savings in the bank and debts if there are any. These efforts will go a long way to result in the possession of good management skills by the now generation.

To sum up, I will say that because of the ongoing entertainment revolution, most people no longer spend time on developing their financial faculties or read to acquire new knowledge. It will therefore be difficult (but not impossible) to teach the now generation good money management skills. With patience and perseverance in the application of the above strategies things can get better.