Money Management

“Money” is a medium of economic exchange in which prices and values are expressed. It is very important to live a life. Just like the three basic units of life- “food, cloth and shelter”. Money is also can be said to be the basic unit as we can but food, cloth and shelter with money only. So its management is also important. “Money Management” means budgeting, saving, investing, earning, spending money in the best way possible. Spending money to satisfy cravings/needs is a natural human phenomenon. The idea of managing money has been developed to reduce the amount of money that is spend on items that add no significant value to one’s living standards. In a nut shell money management means spending money carefully on the needs rather than on wants and wishes and also saving it for the better future.

In Indian Society, if we take a look, we can see that indian society people/groups were divided into different categories on the basis of their earning and living standards. People are divided on assets and income/expenditure. Based on these parameters there are broadly three categories (sub categories are also there) i.e., rich/upper class people, middle class people and poor/lower class people.

Rich/upper class refers to a group of individuals have highest place and status in society. These people are considered the wealthiest, lying above the poor and middle class in the social hierarchy. Middle class people fall between the poor class and upper class. They are neither poor nor rich. These people have a simple living and their earning are mostly equal or less than their expenditure resulting to short debts. Poor/lower class people are those who live under poverty. They are homeless, living on roads and slums, don’t have food to eat, usually dependent on begging and daily wage activities.

People ending up in the same category in which they are born, it is very less likely that a poor class person becomes a middle class one in this life span. There are chances that a rich person becomes a middle class one due to many reason but the chances of upgradation in class is very less.

The reason for such situations- “Wrong money management” and less/no knowledge of managing money. Rich people become more rich and poor become more poor and middle class reamains in debt, the reason behind this phenomenon is that knowledge of money management is not being taught in school and if we talk about poor class children dont even go to school. They don’t even know how to read and write. Money management is taught at home rather than in school. Many of us usually learn about money from our parents.

Talking about poor people, how can you say that they can teach their children about money when they themselves don’t have money to fill their stomach. Poor people just teach their children to go school and work hard. It might happen that the child will pass with excellent grades in his/her academic career but even after this their economic status and mindset remain poor and they keep running in the vicious cycle of poverty like a rat.

Children of upper class are given exposure and knowledge of money management from their childhood. As their parents have more than enough money and seeing their parents earning and managing money they also learn and their intellectual development happens in the same matter but it is not possible in the case of middle and lower class as they themselves don’t have enough money so how can they teach their children about the importance of the same.

Money management should be a topic of concern as it is an important aspect of one’s life which determines his/her status and standard of living. Money management be taught from school level only then children can understand the importance of it. Both government and private schools should organise lecture and seminars on the topic “money management”. If they can manage then parents should also be invited to attend such seminars and lectures. Parents should also give opportunities to their child to learn about the money, its expenditures, saving and management. Parents should send their children to the nearby shops to purchase small goods.

Tips for Money Management

1.Every child should be given the opportunity to go to schools. 2.Budgeting should be done to save money. 3.One should create a realistic monthly budget. 4.Everyone must track their spending. 5.One should build up their savings 6.Must pay your bills on time. 7.Have an investment plan. 8.Know your money priorities. 9.Differentiate between needs and wants.

Money is important to live a good life so as its management also. Money management is a skill that everyone must know to have a good present and better future. Children should be taught about money management at school from the very beginning. It is effectively must to manage money to have a good lifestyle. So don’t waste your time and manage your money now to have a healthy, happy and wealthy lifestyle.