Money — Gotta Have It!
Money can make people do strange things. For the
sake of money, some people stay in jobs they hate.
One out of five people have lost friendships over
money. And 56% of adults say they lose sleep because
they worry about money.
What's Your Attitude about Money?
(Tick the boxes that apply to you.)
Attitudes about money usually vary from person to
person, but the need and desire to have money
is universal. In our culture, it takes money to get
through the day.
Decisions, Decisions!
When you think about it, every day we make dozens
of choices about how to use money. And we don't always
make careful decisions. In fact, most of the time
we make snap decisions and never think about the long-term
effects of our actions. What percentage of the time
do you think you make wise decisions about money?
Do you feel you need to improve?
One of the most important keys to making good decisions
about money is being able to recognise the difference
between needs and wants. Needs are things
you can't live without, and wants are things
you CAN live without. Smart money managers use their
money to get the things they truly need before they
spend money on things they simply want.
Is It a Need or a Want?
In our consumer-oriented culture, all the advertising
directed at young people often makes it hard to tell
the difference between needs and wants. Below is a
list of products teenagers often buy. Tick the items
you consider true needs.
When you are finished deciding whether the items
on the list are needs or wants, discuss your answers
with a friend. It's very likely you won't agree on
every item. For example, a new pair of trainers could
be a need if yours are worn out and you don't have
any others to wear. But a new pair of trainers probably
isn't a need if you have two good pairs at home in
your wardrobe.
Start a Money Diary
Even when you try to be very careful, it sometimes
seems as if money has wings. Where does it all go?
If you never seem to know where your money goes, try
keeping a money diary for a few weeks. Here's how
to get started:
- Use a small notebook
you can carry with you everywhere. On the first
page, write the date and the words "Beginning Balance."
To the right, enter the total amount of money in
your possession today.
- Every time you spend
money, write the date, the amount, and a description
of the expense in your diary. Subtract each expenditure
from your balance.
- Every time you receive
money or earn money, write the date, the amount,
and the source in your diary. Keep a running total
of your balance at all times.
- At the end of the
first week, study the entries in your diary. Group
your expenses into categories such as clothes, entertainment
and food. Add up how much money you spent under
each category. Could you spend less money in one
area and have more money for something else? What
adjustments would you like to make next week?
- Continue your money
diary for a second week. At the end of the week,
study the amounts you spent under each category
again. Do you like what you did with your money
better this week or do you want to make more changes?
- Keep the money diary a third week and evaluate
your spending. By the end of the third week, you
should have a very good idea of your strengths and
weaknesses with money. Some young people find this
system so helpful they decide to use it year round.
YoungBiz Holding Inc. All Rights Reserved
|
