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Report Indicates that Students Need to be Taught about Personal Finance

Diversity Students Graduation Success Celebration Concept

A report that was released by the banking industry towards the end of last year and spawned concerns that students in the United States are not receiving enough information or education about handing their personal finances. While most students spend hours and hours each week learning about their various subjects, officials state that when it comes to their personal finances many of them are totally clueless. Moreover, there are concerns relating to the issues that may arise from this lack of knowledge, prompting some to push for increased education when it comes to personal finances for students.

The study results were released late last year by U.S. Bank and showed that 65 percent of students would give themselves a C, D, or F with regards to how successfully they could manage their own finances. The results indicate that many students do not have the confidence, knowledge or resources to help them to manage their money, which could lead to serious financial issues in later life.

The need for more education

The presidents of the Society of Financial Awareness, Jim Chilton, said that he was shocked that students and children weren’t being taught about personal financial management in schools or colleges. He said that he had to take it upon himself to teach his children, which was viable because he has over three decades of experience in the field. However, for parents without any real expertise in personal finance, this could be a difficult task hence the importance of teaching this in schools and colleges.

A survey was carried out by USA TODAY College via Twitter, with officials asking followers whether they had received any personal finance education when they were at school or college. However, the vast majority said that they had received little or no education or information relating to personal financial matters.

Another official rooting for the introduction of personal finance education in schools and colleges is john Pelletier, who is the director at the Center for Financial Literary at Chaplain College. However, he said that this type of subject matter needs to be interwoven throughout the education of students including both high school and college rather than being taught at just one or the other. He said that this type of education should begin at high school and should continue during the college years of each student.

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Are you saving enough for retirement?

old people

Retirement ought to be the relaxing and unwinding phase of your life. You can turn it into an enjoyable one by planning for the retired phase beginning early in your life. Many people pretend that they are prepared for their retirement and they are saving the required monetary digits to enjoy a comfortable living in their golden years (retirement), but studies show that actually only one in ten is prepared for retirement.

The purposeful decision to save for retirement is one of the toughest decisions an individual will ever make during his lifetime. Many people know that it is important, but do not take the correct actions toward it. Studies have shown that women are least prepared to their retirement when compared to men. It also points out that one should save more than seven to ten times their annual paychecks for a good retired life. This is because even if you minimize your spending to a great extent, you should realize that the costs of all the goods are always rising year after year. Read More

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The Importance Of Budgeting

creating budget

In order to be at your best financially, it is important that you learn the art of budgeting. Budgeting is a financial tool that will help you understand your flow of money and if you commit to sticking to your budget, your financial future is likely to be positive. Without a budget you may be forced to apply for various types of personal loans online which is neither good for your credit or savings account.

Create a budget

If you have not created a budget, I’d advise you sit down as soon as possible and create one. It really is quite simple. Go ahead and write down all of your income sources and add them up. Then make a list of all of your expenses and add them up. Be sure to include all areas that you spend money, such as your main expenses like mortgage, auto loan, groceries, and utilities.

Additionally, include other categories like eating out, vacations, recreation, medical bills, and anything else that you have to spend money on. Including a miscellaneous category is recommended as well, as unexpected things do come up. Read More

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How To Take Your Personal Finance Into Your Own Hands

hands money

If you don’t take your financial future into your own hands, no one is likely to do it for you and your personal finances will be tossed back and forth like a ship with no sails- going nowhere. It is no one else’s responsibility to handle your personal finances. It is yours and you must take control by great discipline and wisdom in order to experience success in your finances.

The first thing you can do to take your financial future into your own hands is to create a budget. List all of your income and expenses and get a clear picture of where you are financially. As you do this, I want you to take each category and decide the amount that you want and/or need to spend in that category monthly.

For example, if you want to allot money each month for eating out, specify what that amount is and stick to it. Keep it reasonable. If you want to purchase one new outfit per month, specify it and stick to it. Of course you will want to list all of your bills and make sure that you have enough income to cover all of them before adding recreational categories. Read More

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5 ways to save more money this month

fast food

If you would like to save more money this month, the following tips and you may be surprised at just how much money you can pocket with some wisdom and effort.

1.Cut out fast food and eating out.

Many people do not realize that eating out adds up big by the end of the month. Even if you only eat at fast food joints, which are cheaper than restaurants, before the end of the month you could easily have spent $100 or more. I challenge you for one month to cook your own meals, skip eating out, and see how much money you can save in one month. Tally up what you normally spend and compare numbers at the end of the month. You may decide to stop eating out once and for all or just for special occasions once you see the savings.

2.Make a grocery list.

Planning your meals and making a grocery list can save you more money this month. Without a list or a plan you are likely to spend at least 1/3 more money than you normally would. Also, try to keep grocery trips to one per week. Compile your list and perform your shopping in one day. We all know that a trip to the grocery store for one or two items, such as milk and bread, tends to result in milk, bread, and a host of other foods that looked good at the moment. One trip per week will save you more money for the month. Read More