Budgeting is a very important exercise which one should learn in one’s life. Basically, budgeting is the way to fulfill your needs in limited money you have and to avoid going under debt. If you will make a proper budget, then you can easily manage your financial sources and make the best out of them. According to the survey, in western countries, one in five households spends beyond their actual sources.
When to start teaching about management?
Unfortunately, financial management is not being taught in the schools. According to many finance educators, teaching of how to manage financial resources should start in preschool so that basics and principles accompany the child throughout his life. Even business magnates and billionaire Warren Buffet has laid emphasis on teaching financial management at an early age, in one of his interviews. He emphasized on teaching about managing money not to teens but to toddlers as well. Taking it into consideration, a cartoon web series, The Secret Millionaires Club, which is an animated version on Buffet, is being featured. Children can easily relate to this animated version and learn a lot about financial management. This web series features basics and principles of sound financing and business.
Managing finance resources:
Make your budget plan: this should be your first step. List out all your expenses including taxes, loans and then make your budget plan to avoid facing any difficulty in the future. Allocate your money to each section afterwards.
List your sources of income: you need to take the sources of your income into the account while planning your budget. You should ensure a continuous flow of money from those resources and if it is not, then try to make amendments in your budget according to your resources.
Record of expenditures: You need to have the proper record of your expenditure. It will enable you to know where are you spending unnecessary and how can you spend that money in more useful manner.
Adjust within your means: always try to make your budget in the limited resources you have, so that in the future you don’t end up watching yourself in jeopardy. Learning these basic things will help you to save money.
Take the first step today
If you are a parent then, it’s time to teach yourself as well as your children to manage the financial resources. You need to encourage your local school to include it as a subject in schools. As we all know, teaching is not limited to schools only, thus participation of community and school is required.