Money Management

Week 3

What do I know about money management?

The value of money and how hard it is to earn it.

What I want to know about money management?

How to save money and to spend it efficiently.

 

What I’ve learned about money management?

I’ve learnt what the definition of overspending is, it is when you spend more money than you can earn. Which is quite self-explanatory if you think about it .

I’ve also learnt of what is a need and a want. A need  is something that you require.For example, an obvious one, FOOD.Some thing that is a want is something that you can live without, mostly recreational items,being a game or a new pair of shoes when you already owns 3 other pairs.

Lastly,setting savings for the future. The importance of saving money that will be beneficial in the future.This can potentially grants us an early retirement or maybe savings for marriage. I now know you can set a goal and work towards it. Making saving a lot easier to plan.

 

I really liked the reading of the bad spending habits of teenagers as I am able to relate to. The fact about teenagers unable to put in efforts to save money. Spending every single cent on the day they get their allowances.Sometimes they will blow up their allowances and end up borrowing.They mentioned about a very true point of being in the trend.”trying too hard to fit in” is definitely one point that is undeniable. Teens are always wanting to fit in society, and one way to do so is to dress the way that everyone does.Examples are branded stuff, Nike, Adidas,Levi and many more. In our developed environment, it is difficult for some to be able to distinguish ‘Needs’ and ‘Wants’. I personally am able to distinguish the difference and certainly do not follow trends(pretty outdated~). This difficulty can create holes in their pockets as they might be spending their on unnecessary items and they might associate with ‘Needs’.

(http://teenageinvesting.blogspot.sg/2015/01/the-truth-about-polytechnic-students.html)

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