Onto the next article on the topic of financial literacy, Why Manage Money? I will expound on the excerpt, “how that person manages it (money)” from the Wikipedia definition of financial literacy as mentioned in the initial post of this series.
We read in the headlines all the time how a celebrity or sports star goes bankrupt. Ever wonder how a lottery winner can go from rags to riches then return to rags? Sadly poor money management exists at every social level. On the bright side, so does good money management!!
Money Management definitely isn't the most exciting topic in the world. Consider it boring but important. Usually you might only think about it when it comes time to pay the electric bill or buy a gift for somebody and have to check how much money is in the bank account afterwards. The end goal each month is saving more than you spend.
Food For Thought…
What good is lots of money or food or cars if you are essentially going to treat it as a firework on the fourth of July? Pretty and fun but only can be used once. What happens on July 5th? Hopefully you have more left to fire on a different day.
Would you trust your investments with a financial adviser if you were told he would intentionally squander your money?
If you don't think money management is important, think again. Whether you manage your own money or have a responsible adviser, nobody wants to see their assets just vanish like a magic act. Even if it is your old football card collection from grade school, you still don't want to give it away for nothing.
For ideas on money management, please look at my other posts or pages on Money Buffalo.
Josh founded Money Buffalo in 2015 to help people get out of debt and make smart financial decisions. He is currently a full-time personal finance writer with work featured in Forbes Advisor, Fox Business, and Credible.