What really is money? Why is it so important? Why are the schools not teaching us about it?
These were a few questions that went through my mind while thinking about money.
In layman’s terms, money is any item that is generally accepted as payment for goods and services.
Despite its significance, it’s a term neglected throughout our school time. Most of us don’t understand its importance until we start our jobs.
But don’t you think it would be great if we had learned on the concept during our school time itself?
- Why is Money Important?
- Why School Doesn’t Teach You About Money?
- Is it too Late to Learn about Money?
- How to Manage Your money?
Why is Money Important?
“Schools teach you how to work for money, but don’t teach how to make it work for you.”
We can all agree that money is the lifeblood of our lives, can’t we? What would our lives be without it? Will we be able to even survive without it?
It is arguably one of the most important fictional things created.
To say the least, it assists us to fulfill our basic needs.
2. Money = Status
This might sound cliché, but its relevance is more than ever. The world is once again turning into a capitalistic one. A person having high net worth is given greater respect. He’s also likely to have superior power as compared to ordinary people.
As per Forbes Magazine, Jeff Bezos, Bill Gates, and Larry Page come at 5th, 7th, and 10th most powerful people in the world respectively. What do they all have in common? They all come under the Top 10 Richest People in the World.
“The real measure of our wealth is how much we’d be worth if we lost all our money.”
3. Coronavirus Effect
Amid this coronavirus pandemic, many nations have shut down their operations. Businesses are getting closed and employees are losing jobs.
The supply of products has got down, skyrocketing their prices.
In some nations, basic food and medicine items are hard to come by. The people who have funds might live without many problems, but the ones not having it might not even outlast this shutdown.
I mentioned money as being lifeblood to us. But, many times, we want more.
Occasionally, we do want to eat at a fancy restaurant or buy from our favorite clothing brand. To pay for them, we would need an extra dose of funds, don’t we?
Why School Doesn’t Teach You About Money?
1. Traditional Curriculum
Over time, we find changes in technology, health care, or practically anything you can think of. However, the education system in most parts of the world hasn’t changed much. We are still learning the way our parents did when they were of our age.
In the traditional curriculum, there was no subject of money.
Forget about other courses, even the business courses don’t consist of this topic.
2. Myth that Children shouldn’t learn about Money from a young age
What would you think if you saw a 6-year-old with a $100 bill? Wouldn’t you freak out most probably? You would think who’s stupid enough to give a child such a big sum of cash, wouldn’t you?
Sadly, it has meant that no children should learn about money from a young age itself. We miss out on the opportunity to learn about one of the most essential tools mankind has ever created.
“Teaching kids about money is never just about money.”
3. Most Teachers Didn’t Learn Themselves
Ask your teachers whether they learned about money when they were small?
I’m sure the answer would be no for many of them.
Why would you want to educate a concept to others which you yourself had not learned earlier? Why take such a risk?
4. Jobs are Easy to Get After Graduation
Robert Kiyosaki, the author of Rich Dad Poor Dad, advocates that schools instruct us to become a good employee. They don’t educate us on how to make money work for us.
Landing yourself in your dream job is harder than ever. There are a lot of candidates fighting the same.
Also, many companies aren’t as loyal to their employees as they used to be. An employee can get fired anytime, without knowing what their fault was.
Last week, around 3.3 million Americans lost their jobs due to coronavirus, despite not being their fault.
Unfortunately, a lot of schools still believe that landing & holding a job isn’t a problem, so teach accordingly.
Is it too Late to Learn about Money?
One might wonder when is it too late for us to learn about money. But let me tell you, it’s never too late.
Yes, that’s right!
Irrespective of whether you are in a school or at a job, its concept is still worthy.
Even if you think you are too old for this, you could always teach this to your loved ones. Perhaps they will find it valuable.
You may find the following money management tips valuable.
“Better late than never, but never late is better.”
How to Manage Your money?
1. Tracking and Budgeting
The Richest Investor in the world, Warren Buffet, began tracking his money even before becoming a teenager!
How much money did you spend last month? How about last week?
Were you able to answer those questions? If not, then that’s the first activity you should be doing.
I believe that being self-aware about something is the first step in changing it.
With money, start tracking your incomes and expenses, even set a limit on your expenses (only if you can).
Budgeting helps you become aware of the amount of money you have been spending. Not all expenses would have been fruitful, isn’t it?
I have used this technique for over a year now. It has been one of the most necessary steps for me in managing my finance.
By merely tracking and checking my expenses, I realized I had been spending my funds in a haphazard way. I then felt guilty for doing so. Then as if my mind had understood my concern, I happened to spend my money effectively. I bought only the items I needed, cutting out on the ones I want.
“The person who doesn’t know where his next dollar is coming from usually doesn’t know where his last dollar went.”
2. Accountability Partner
I absolutely loved this idea the first time I learned about it!
Even though I used to set an expense limit every month, sometimes I used to overspend (duh, who doesn’t?). So my friend and I decided to become accountable partners.
Every time I had to spend my money on something that wasn’t of a necessary cause, I would have to take permission from my friend.
Now, it all depended on him. If he said no, I wouldn’t buy it.
This had an immediate impact on my expenses, which helped me build consistency.
I’m sure you can also find someone reliable whom you can call as your accountability partner.
3. Fixed Deposit
If you still find it hard managing your money, you could simply open a Fixed Deposit Account at a bank.
You would be depositing a lump sum cash in your account. No matter how much you want to spend it, you won’t be able to do so.
It remains there until its maturity date – usually a year or so.
Also, you will earn a certain percentage of interest by just keeping your money with the bank! Isn’t it cool?
Instead, if you want to deposit your funds on a timely basis (say a month), then you can open a Regular Deposit (RD) Account instead.
I opened an RD Account a year ago, and have no plans on cutting it back. After all, I am earning some free interest as well.