Uswa Budgeting Finance

With the invention of the Automated Teller Machine (ATM) over 40 years ago, it has become increasingly easy for people to access their hard earned cash when banks are closed. Indeed, the days of storing our money under the mattress are long gone and with cash machines on nearly every street, in garages and in shops, getting access to our funds is easier than ever. Plus, with the advent of the ‘chip and pin’ era, it’s possible to buy just about anything without ever seeing any paper or coins.

Furthermore, pretty much all employers will only ever pay salaries directly into a personal bank account via Bankers’ Automated Clearing Service (BACS), so there’s no getting away from the need to have a bank account.

All we need these days is a bank card and we’re good to go. The internet too has enabled people to manage their money better than ever before, with the need to wait in bank queues on our lunch hour now a thing of the past. We can transfer funds, pay bills, view statements, set up direct debits…all from the comfort of our own home.

Such is the proliferation of internet throughout society, that recent research showed that around sixty percent of consumers expected to apply for a new bank account on the Web, rather than the more traditional means of visiting a local branch.

The role of the internet doesn’t stop there though. Well before we even get to the stage of setting up a new bank account, the Web offers a fantastically rich resource for those wanting to get the most from their bank account.

Just a little research will reveal the sheer wealth of different accounts out there. From simple, free bank accounts that offer a basic deposit/withdrawal facility, cash card and online access, through to premier accounts that offer car breakdown cover, travel insurance, mobile phone insurance, interest free overdrafts and a whole host of other inclusive services, there certainly is a lot of choice.

Of course, such accounts come with a monthly fee attached and they may not be for everyone. It really is a case of working out which of the services will be of benefit and which won’t. However, any initial reservation about having to pay for a bank account may soon vanish once you work out how much could be saved over the course of a year.

The need to compare bank accounts before making a final decision shouldn’t be underestimated, as each current account is unique. What works for one person, may not work for someone else and as with anything in life, it certainly pays to shop around.

Adhering to money management through out your life helps in keeping a track record of your finances and living a debt free life. This habit should be followed right from your early age. The best source of imparting money management comes to mind is ‘school days’. Understanding the financial need, money managementshould be taught as a separate subject, right from the first class.

Some important points while teaching money management in schools are as follows:

As the kids grow older, their need increases. For this they get pocket money from their parents. The teachers should make them understand how to use pocket money more wisely. The kids should also be encouraged to save some amount of money. Teachers should make kids realize ‘how hard the parents work to earn money?’ This will help the kids to know the value of money and what all hardships it takes to earn.

Another important factor which the teachers should keep in mind is ‘peer pressure.’ Quite often the kids’ complaint their parents about their limited pocket money as compared to their friends at school. For example “: Dad, nick was showing me his brand new bike, What about me?”

Since these things mostly arise in school, therefore it becomes the responsibility of teachers to make the kids understand this particular situation. Every family is different in their living style, financial background etc. The children should be encouraged to have a positive attitude while dealing to such issues. In the future the kids will not indulge themselves in spendthrift habits.

Teachers should accentuate on the fact that most of the things have a price tag attached to it. The kids should be taught not to damage the things such as books, desks, walls etc. Not only in school but everywhere as we live in a society and it’s our duty to protect it.Making this a habit, the kids will save more money in the long run.

In higher grades the children should be taught money management concepts that will help them in dealing with situations such as recession, inflation, job retrenchment etc.

Teaching money management as a separate subject will help the kids to live a smooth financial life. In the future the kids will respect the money more, live a debt free life, can enjoy every thing without sacrificing on their basic needs, can save more even from a limited income for the rainy days and live to the fullest without any financial worries. Irrespective of the future financial situation, the kids will not have to worry about managing their finances.