From a very young age, it’s so important that you learn how to manage your finances. Having money is a really big responsibility. It’s sad that alot of parents and schools fail to provide young people with the knowledge they need to learn how to properly manage their finances. It’s obviously not something you have to worry about as a young adult, but as soon as you get a job you need to know how to do it.
Growing up I was always taught to save money and how to budget money. I always saw my parents working hard at saving and making wise decisions when buying new things. And it really helped me to learn the value of money and how to correctly spend and save it as a I got older.
For todays post, I want to talk about effectively learning how to manage your finances. And I want to share some of the knowledge I have on this topic too. At the end of the post, let me know some of the advice and tips you learnt growing up too.
OPEN A SAVINGS ACCOUNT
One of the very first things I did as a young adult was open a savings account. I didn’t ever have any money in there, but its something that I utilise now that I am older. When my parents took me to the bank to open it, I was so confused at why I was doing it. But, it taught me a really valuable lesson in saving.
There are alot of different savings accounts out there, so I wont be going into detail about each one. But, do your own research. Have a look and see which kind of savings account would be the most beneficial to you and your situation. Savings accounts are also a great way to make interest on your money too. So, see it as an investment opportunity.
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SET BUDGETS
As you start to make money, set budgeting strategies with your money. Put money aside for food, bills and anything else you know you need to pay. And see the rest as your disposable income. This is the money you can use for the month for leisure activities.
There are some really good banks that provide special savings cards you could look to get too. I have one called a Monzo card. And I put a budget of money into it each month, and as soon as its gone then its gone. And it really helps me to limit my spending.
BUY RESPONSIBLY
If you know that you have bills due at the end of the month, make sure you have enough in your savings for them. But also make sure that you are buying responsibly throughout the month. Don’t make any expensive transactions if you know you only have money for your bills. It sounds like common sense, but alot of people make this mistake and get caught up in the moment.
There would be nothing worse than to have that heart sinking feeling, knowing you don’t have any money left at the end of the month. Buying responsibly doesn’t mean that you can’t buy anything or enjoy buying. It just means that you have to be careful with how much you spend.
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LIMIT CREDIT CARD USEAGE
Credit cards are great for when you need to buy something big. But they can also be a curse too. So many people get carried away with buying things with a credit card, and often forget they have to pay them back with interest. Data shows that on average British people brought nearly £10,000 worth of debit into 2021. Which is such a scary statistic!
Be careful though. Remember that alot of the time credit card companies have really high interest and you have to pay that back on top of what you have borrowed. Taking out zero % interest credit cards are a great way to be smart with your money. Also make sure you pay back what you borrowed quickly too!
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How have you learnt to manage your finances? Do you spend responsibly?
This post is not just about me giving advice about how to manage your finances, its teaching me too. As I go into the world of home owning, it’s important that I myself learn about this too. I hope you found this post helpful!
Olivia x
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A lot of young people in this generation don’t know much about proper money management, so this is like a really helpful guideline.
Saving, budgeting and then spending is a really great method.
Amazing post!! I loved it.
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You’re so right! Thanks for reading!
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A necessary post to write about. I teach my children to give a tenth of their pocket money just to make them realize the accountability.
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I love this 👏🏻
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Awesome article I love it. Reblogged this on https://unlockingadulthood.com
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Thank you for sharing!
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You’re welcome ☺️
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These tips are a great place to start. Working in financial services, I see the impacts of a lack of financial education every day. One of my first jobs was working in consumer credit and collections. It opened my eyes to the trouble people can get themselves in.
Sadly, many parents aren’t good with money so they don’t have the skills to pass along to their children. We opened savings accounts for our girls when they were little. They would deposit money they received for gifts in them. Building a saving habit at a young age is so important. When you get your first job, start saving regularly and continue. Your future self will thank you!
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I’m sure working in that field did! Thanks for reading Michelle!
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Don’t forgot about inflation, after saving, we must put some cold money in investment that we trust or we know how it works. High yield interest rate account, hedge fund, stocks, or probably the riskest forex.
Well all depends on us, but in general my must have future proof saving that grow beyond inflation.
Anyway nice comment mam 🎉👍
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This is really important information, thanks for sharing! My parents had a savings account for me since I was little, and even though we’ve never struggled financially, they tried to make me aware of some stuff. I want to learn how to be independent, so being aware of some of the things you mentioned is really helpful! ☺️
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Thanks for reading!
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Great tips. Sadly, excessive bank charges and low interest rates on savings discourage people from saving money in the bank in my country. And I will rather remove savings first from my salary and pay my tithe before spending the rest. That’s just me.
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You’re right. Thats one downside isn’t it!
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Yes, it is
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Great tips! Schools should do a better job of teaching kids how to manage money. Hopefully, those who are trying to learn how can find this post. 😁
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They really should. I wish I knew more about money at school!
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This is almost perfect because I noticed that there are not that many posts about finance on WordPress. When I wrote a post about it, I expected to find so many more but there weren’t. It’s nice to finally find one.
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I am so glad you liked this post. I thought so too!
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Well written! Check out my post for more on this subject.
https://moneymattersfinance.wordpress.com/
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Noted I’m going to start using those tips🎉
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Financial literacy aren’t just a couple of fancy words in my book. They’re the keys to a less stressful life. I’m an expert on blowing the bag lol
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Thank you for this reminder! I have fallen off on watching my budget and I really need to get back to it! I miss having money LOL great post
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Great info available here .Thank you for posting. Hope to learn lots more.
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Please write about something like that topic How much you know I am happy 😊 some learning different.thanks
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The fact that people don’t teach their kid’s about finances is kinda worrying. Even if they go on to earn lots of money they probably won’t build wealth.
Loved this post, I’d appreciate a visit to my page and a follow if you get a chance!
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