We would expect that after all our education, school would have been the place to learn how to handle our money. However most weren’t taught these lessons at school and sometimes we weren’t taught about money at home either.
What we have or haven’t been taught about finance comes from several factors such as how we managed our lunch allowance, how we were raised, what habits we learned from our friends and so on.
Here are a few lessons we think we could have sat in class for:
1. Saving Smarter
What can make saving so difficult at times is the fact that we don’t always have a goal attached to it. As a result we may not be as committed to our savings as we could be.
Create goals that are clear and then plan your finances around those goals. Putting away £100 a month for the sake of saving isn’t the same feeling as knowing that a £100 could be going towards your future house.
2. How We Think About Money
If you had all the money in the above image what would you think to do with it?
The thought of money or sometimes the lack of money can leave us feeling nauseous and anxious. At times, the thought of too much money can make us feel greedy. Some people may feel like they don’t need a lot of money and some may feel like they do. As a result of mixed emotions towards our money we may not prioritise it in the way that is aligned with our financial thought process.
Ask yourself: “How do you feel about money? How do you feel about your ability to earn it, save it & manage it wisely? How quickly do you spend it? Do you want any of your answers to change? Then change your mindset step by step.
3. How To Decide What Is Worth Spending Your Money On
Evaluating what your priorities are when it comes to spending is important. What do you love to do? Travel? Buy clothes? Buy make up? Go to concerts? It’s hard to do all these things at once so every month choose what is most important to you. If you plan to go on holiday in two months and you walk into a store and see something you like that you didn’t even plan on spending your money on, remind yourself about that holiday coming up.
Make sure whatever you spend your money on is truly important to you. A tip to keep track of your spending is to have 2 accounts, one for necessary spending (phone bill, rent, etc) & one for luxury spending. This is a great way to distinguish between yours needs vs your wants.
4. How To Talk About Money
Money only tends to be discussed when things are getting to a point of crisis and this shouldn’t be the case. Money doesn’t have to be an awkward conversation with friends, family or even a partner. The important thing to do is never have a financial conversation when someone is Hungry, Angry, Lonely or Tired. Yes, this indeed creates an acronym called HALT.
It’s important to get comfortable talking about money because we never know who really needs that talk. Sometimes we need a friend to recognise our spending habits so we can acknowledge it and make a change where necessary. Get comfortable talking about money. It may take some getting used to but it’s worth starting the conversation.