How Do Your Money Management Practices Impact Your Life

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Today working class people long-term goal is to be successful. People want to live the “American Dream” rather that being purchasing a home, buying a nice car, or providing for their family. It’s a peace of mind we all strive for. Sadly, it will take some longer than others to achieve this dream because in reality most of Americans are in debt. Generational change, roller coaster economy and the lack of education for money management. 

When it comes to finances we strive to make a good decisions, but actually we were never correctly taught. Our country has high debt , bad credit, deferred student loans we are failing financially. Some do not have the skills to make effective decisions for long-term financial stability. For the upcoming generation we will have to do a better when it comes to saving and investing for the future. How can we fix this? 

Money Management Skills in the Classroom 

Teaching our children about money has a huge impact on their future. Understanding how money works and how to manage it responsibly can begin in the classroom. Education on how to select the right student and personal loans for your individual needs and how repayment works. The know how in choosing a credit card responsibly can prevent misuse of funds that could possibly lead into money problems like credit card debt. 

Today’s generation believe that money management courses should definitely be apart of the core academics in high school. Providing a course that teaches real life money practices can be beneficial for all. A Financial Literacy Classroom Model is an idea that can teach strategies in learning variations of money-making skills to prevent debt. 

It is vital that individuals are given the tools to make responsible decisions when it comes to spending for everyday life. To be financially literate can provide financial intellect , personal growth and a more successful you. Vision, Plan, Budget, Invest: Ways to Successfully be Economically Responsible Have a vision to execute a plan and accomplish becoming financially literate. Financial proficiency allow an individual to make effective money spending decisions . 

Irresponsible or impulse spending can lead to bad debt management. Learning the difference between purchasing “wants” vs. “needs” is determining what is valuable to you. Try to look at the bigger picture when deciding to buy on impulse. Is it a actual want or a need? Get in the habit of using cash for your purchases instead of pulling out a credit card to swipe just because it more convenient. Plan to create a budget and stick with it! A budget can eliminate impulse spending and prevent a falling credit score. 

Think ahead planning for retirement is a excellent financial decision. Start with your employer some companies usually offer a 401K retirement plan as part of your benefit package. Take control of your personal finance it is never too late in improving your knowledge for your personal financial freedom. Reevaluate your spending and everyday expenses to save for the future.