Amazing Kids! Magazine

Money Lessons to Live By

By Sehen Gamhewa, Contributing Writer

 

When I was small, I didn’t know that money even existed. For everything I wanted, all I had to do was cry out, “Mummy I want that” or “Daddy I want that” and, literally a few seconds later, it was mine. However, as I grew older I realized there was something called money. Yet, I still had the “Money grows on money trees” attitude! As more time passed, I finally realized if one wanted money, he had to work hard to earn it and no one can get it simply. But, haven’t you noticed, some people struggle to live their lives in poverty, yet some relax and get all their things done comfortably in the blink of an eye? I did, and so, naturally, I wondered why.  As I learned more about this complex world, I noticed that different people in the society have diverse attitudes and behaviors. The way that people retain, spend, use and handle money is greatly influenced by these personal attitudes.

Some people spend lavishly and always find money burning in their pockets. These people end up drowning in debt, trying to get back that money and soon, they find themselves in poverty. But the people who try to salt away money very wisely, they’ll be the ones who can relax and enjoy the rest of their life.

All of us know now, that money is incredibly important for our survival. As our lives improve, our day-to-day need for money also climbs steadily. We need money to get furniture for our houses, and food to eat, and water to drink. Everyone struggles to get their hands on money because the more money we earn, the more materials we’ll be able to buy. Like money, the skills to manage it are equally important for these skills decide whether one day, we relax or panic. So my friends…let me show you some money smarts which you can use to become a successful person:

Realize that money DOES NOT grow on trees and that only if you work hard will you earn money:

Sooner or later, all of us will be walking past the golden gates of childhood and entering the vast, thorny, shrubbery garden of adulthood. In this vast expanse of people, we’ll have to earn the bread and butter for our own families, just like our parents did for us. As adults, we can either invest in our own business or we can undertake a job. We will reap the rewards of our hard work on our jobs or business unless we perform our job or business in a lethargic manner. And then, you won’t be wasting your hard earned money, because you’ll remember every drop of sweat you’ve felt, and all the hard work you’ve put in. You deserve that money, and the same applies to every working person in the world. That money’s valuable to the person who undergoes the suffering to earn. So keeping this in mind, let’s all learn to manage money efficiently and work hard as well.

Start budgeting and save/spend appropriately:

Budgeting is just planning how you can save and spend money prudently. When you’re going to buy an item with the money you have, you have to make a budget, whether it’s a state-of-the-art piece of tech like a laptop you’re going to buy, or even a book. You should also keep in mind two things while making a budget: First, decide, is it a need or a want? (Need means it is essential, want is something you wish for but don’t need for survival.)  Second, find the best plan for buying it. Check in various places for different prices, and based upon your judgment, select the best value item suiting you; it should suit your requirements and should be affordable. If you learn how to budget in a proper manner, no matter how less or more in cost that item is, it’ll help you to save money. If we will work according to our budget, we’ll be able to salt away more money. While budgeting, remember; always keep in mind the concept of saving. Saving is the art of putting aside money for the future. As children, we can collect all the savings of our pocket money and gift money in a big, fat piggy bank. But that isn’t the only method to save money. You could ask your parents to invest in a savings option for your higher studies or you could open a savings account in a bank! Saving can be a real useful asset as it can help you achieve your future goals, one day and earn money called interest at the same time.

EXAMPLE: You have $100, there’s a pair of NIKE sports shoes, costing $80. There’s also a pair of Lonsdale sports shoes costing $30. You just want new sports shoes. So you should buy the Lonsdale ones, save up, you may be grateful you did, one day….

Stay out of debt:

Some people work aimlessly, not knowing how to manage their money properly. This will pave the way for them to take on unnecessary debts. Taking on debt can lead to a rocky road for their long term financial stability. Even though they might earn whopping big piles of money, they’ll never ever become debt-free. What gets them into that huge mess is the fact that they start borrowing just because they can borrow, although they don’t need it, they just want to. They find an opportunity to get money, and they take it. They borrow for expensive cars, jewelry, high priced clothes, state-of-the-art technology and unaffordable homes, thinking they can own it all. But, they forget to consider the debt they owe back. So when the time comes to pay back, they take another debt, and this just goes on until they’re buried in debts forever. If you take a loan for a need, just pay back the loan amount and get it over with. That is why you shouldn’t borrow unnecessarily!! It’s an incredibly bad habit. We, as children should avoid developing the habit of borrowing, even from our friends or relatives!

Learn to give:

When you give, you eliminate selfishness. It empowers you and also makes you think, Money isn’t all about me! You’ll be doing something for the betterment of the world and you’ll also be doing something for the betterment of yourself. Giving doesn’t mean just giving to charity, it can even mean giving money to one of your own family, when he/she’s sick, you’ll feel pretty good inside that you helped him/her by at least contributing a dollar. Or, it could be you giving a little of your pocket money to some kids who don’t even have enough money to buy a bun.

Gift Saving Hint:

Get crafty!

Make your own cards and gifts. When all the uncles and aunties are expecting those gifts, instead of buying them everything and wasting all that money, you can make your own cards and your own gifts. The message will be more heartfelt to your friends too. I haven’t purchased a single birthday card, I made all of them by myself, and this is something all of us can do. My relatives loved the cards I made.