School teaches us so many things. It teaches us how far the moon is, how to solve a complex arithmetic equation, how to decode Shakespeare plays, etc., but we don’t use these skills in daily life. What schools need to teach is financial literacy. It has to teach students to handle money, budget their expenses, fill out taxes when they start earning and saving money, and make financial plans for the future. Sure, there are many budgeting financial services available to help you out. But, this is a life skill every student needs to know.
How to Budget?
A budget is a financial plan on how much you earn or intend to earn and what you want to do with it. You must segregate your money for daily needs and expenses and save for your future. Writing these down and calculating your expenditure is budgeting. It can be done weekly, monthly, quarterly or yearly.
Why do you need a Budget?
To Set Financial Goals
It will help if you plan your future goals, like buying a car, an asset, or even preplanning your higher studies. All this needs money, and you need to start saving and investing in the present to achieve them in the future.
To Meet These Goals
Anybody can list their dreams and future needs, but only a few start working on them in the present. Calculate the cost of your dreams, keeping in mind inflation and taxation, fix a time to achieve the goals, and start saving and investing accordingly.
Pay Off Debt
Be it Business or Your Family, you need money for development, and credit is the best way to get money to grow. However, you need to pay back the credit with interest. Suppose you have any debts to pay off. That needs to be in the budget, and you must separate the money needed to pay off the monthly debt.
Budgeting and writing down your expenses can help you keep tabs on what you spend on and how much you spend on each thing. This will help you reduce your expenses in the future. Migrating this practice to the business makes tax payments more manageable.
Budgeting Financial Services are essential life skills for everyone, to be learned and practiced by every individual right from a very young age. It helps them manage their money, be responsible and also be able to meet all their future goals.