Getting Your Money's Worth: Making Smart Financial Choices
CHAPTER ONE SPEND TODAY OR SAVE FOR TOMORROW Is your money burning a hole in your pocket Do you want to spend it but feel as though you should save it too Knowing when to spend and how to save is an important part of having money Money is a necessary part of life We use it to pay for almost everything we need and want from what we wear to where we live Most people do not have an endless supply of money That’s why being money wise is essential 4 How do you manage your cash Keeping it in one place until you need to spend it may be one way of managing money As you get older however you will have more money and more things to do with it Opening a bank account is one of the first things you can do to keep track of exactly how much you are saving and how much you have on hand to spend
In The Red and In The Black There’s an old bookkeeping term for not having enough money to pay for things It’s called being in the red It comes from the practice of recording debt in red ink in accounting books Black ink was used to record when more money came in than was spent In terms of your personal spending being in the black is something that requires some knowledge and planning Learning the value of money Thousands of years ago before money existed people traded or bartered for the things they wanted A farmer might trade cattle for cloth If you have ever swapped something you own for something a friend owns you understand bartering It is a great system except for when the value of what one person has to barter does not match the value of what another has to trade That’s where money comes in handy Money is a symbol of value It is something we exchange to buy things The expression and title of this book getting your money’s worth refers to getting good value for something you paid for How do you know what is good value or that you have used your money wisely Knowing how money works can help you understand how to spend it and save it in smart ways As you grow older you’ll have household expenses to manage big purchases to make such as a new home and of course you’ll want to take well-deserved vacations from time to time You will quickly learn that money can be difficult to juggle With careful planning however it’s possible to have a positive relationship with money and reduce the stress of managing your finances 5
Shift Financial Literacy Speaking of Money It doesn’t matter how old or young you are learning how to save and manage your money is vitally important By starting good financial practices in your youth you are more likely to maintain these good habits in your adulthood U.S Mint’s H.I.P Pocket Change Web Site Firm Up Your Financial Smarts Rather than going through life worrying feeling guilty and experiencing jealousy you can choose to have a healthier relationship with your dollars and cents You can choose to sharpen your money smarts This area of expertise is called financial literacy and it’s something you can start working on right now Learn the Language of Money Financial literacy is about learning the language of money and becoming comfortable speaking that language It’s about understanding how to earn money keep track of it and save and spend it wisely Mostly financial literacy is about learning how money works and how it can work for you Many people consider money a taboo subject or something that is not acceptable to talk about in public Not talking about money though is one of the things that can lead to financial problems in life Earning money keeping track of it spending and saving wisely These are some of the important ingredients leading to financial literacy and success SALE 6
BE CAREFUL OUT THERE HUSH MONEY Because there are so many people ready to separate you from your money it's important not to discuss your dollars with just anyone Of course you should talk about everything related to your finances with your parents or guardians Otherwise think before you speak When you're out shopping for example it's not a good idea to discuss out loud how much cash you're carrying in your purse or pocket You never know who might be listening The same is true of money in a bank account and your family's financial status If the wrong people find out that you or your family have a lot of money stashed away they may try to cheat steal or otherwise take it from you Most people you will meet in life will be trustworthy kind and honest but money can influence some people to act differently Greed can lead certain people to do mean unethical and dishonest things That doesn't mean you can't trust anyone when it comes to your money It is however important to be aware that greedy people exist and to be cautious when it comes to sharing your personal money 7 matters
