Today, more than ever in this current economic climate, we are realizing the need for budgeting. I heard some startling stats the other day… almost half of the population in my area is $200 away from inslovency each month. Each month! Job losses, lay offs and uncertain business futures add to that stress. Many are just doing what they can to get by right now… this is certainly not a time for extras. We have to watch and plan for every penny.
Every crisis has a lesson.
With eyes open, we can learn how to improve ourselves or our environment in some way. For me, right now, the lesson is to teach our kids about the importance of budgeting. If they understand how to plan out their finances and start forming smart spending habits, they can avoid being part of the stat above when the next crisis hits. They can make sure they are not $200 away from insolvency every month. Planning for emergencies and unexpected life turns are a part of responsible money management. We can never predict when the next pandemic or alternate crisis will hit, but we can encourage our kids to prepare for the unexpected. The best insurance policy for a bright financial future is education… education on responsible money management.