Learning to budget correctly can help lead to a successful and responsible financial future. By budgeting accurately, an individual can see how much they are spending on necessities and leisure activities. Not only does one get to see how much they spend, but they can also strategically plan out how much they want to spend exactly on certain items like groceries. 

As a college student myself, I know what it is like to run out of money because of paying my bills and not having enough money for the rest of the week. As an affect,  I would be on a “ramen” diet. Anyone can run out of money, but it is avoidable through money management and saving money over time. While this skill is not always taught in school or passed on from parent to children, it can be learned. 

In an article written by, Shannon Jones, the study showed most Americans have inadequate savings, it brought up devastating percentages of how much Americans actually save. The rate at which Americans are saving is steadily decreasing, after rising in the aftermath of the 2008 financial crisis when it reached a high of 5.5 percent. As human beings, we all get older with age and we don’t only save for emergencies but also for the future. It is always good to have a little extra money just in case. Money management is an overall important and rewarding ability to have because it can prepare many individuals for the future or a financial obstacle. 

Another reason to save money is to be ready for emergency, such as, needing cash for a co pay at the doctor’s office, needing to replace worn tires, paying for medication or some other unforeseen essential needs. 

While not everyone has an emergency fund saved up, anyone can start one. On the popular website “Go Girl Finance,” Dave Ramsey states that everyone should begin with $1,000 and then work their way up to three to six months of living expenses. However, that should only be done after dealing with debts.” This website even brings to light a dramatic statistic that most people do not know about Americans and their saving habits. 

In “On My Own Two Feet”, Go Girl Finance’s favorite Finance’s favorite expert, Manisha Thakor and co-author Sharon Kedar shared some thought-provoking statistics. Thakor and Kedar stated that 50 percent of Americans would struggle to come up with $2,000. They even said how 64 percent of Americans do not have the correct savings to maintain a one $1,000 emergency expense. An emergency fund is crucial and it is more beneficial to start saving early. 

Paying off the money someone owes from either a credit card or a loan is especially important because of interest. Interest can build so high that people end up paying back more than they took out in the first place. If it is not possible to pay back all the money an individual owes, then the best thing to do is to make a small payment that is over the minimum, such as if the minimum is $25 then pay $40. This will counter some of the interest and make the debt disappear faster. Credit cards may seem scary and almost feel like an easy way to trap people into owing endless amounts of money, but they are a good thing. The only way someone can really start building credit is through the ownership of a credit card. 

Good credit is a very crucial factor in life because it will help you buy a car, house, take out loans and help you bypass start up fees. An example of this would be when first getting cable at a new apartment; if you have good credit then you don’t need to put a down payment, not to say that this is the same for every company.

There are plenty of things that people should know about money, such as setting up a bank account, managing money responsibly, being able to do taxes correctly and saving money in an efficient way. Unfortunately, not everyone has mastered these skills but they are good to learn for one’s financial future. 

In some colleges and high schools, they do not teach their students to balance a checkbook or file taxes. These institutions get students ready for a lot of things that will come into their paths like standardized tests and writing proper essays, but not always financial responsibilities listed above. Part of growing up is being able to not only be self-efficient, but also financially independent.