December 13, 2012

Two Basic Processes of Financial Management

According to financial experts, majority of children today have little information about how to manage their money. The USA Today has recently revealed a story of how high school students can’t even pass less complicated financial literacy exams. Unfortunately, several states do not educate children about the topic and its issues. Another problem is that most state school systems remain to be unfunded getting insufficient support from the government and other organizations to allow them to include financial literacy subjects in class.

People need to familiarize themselves with financial literacy because of the fact that debts will not go away, or even the market for different kinds of things that influence people to spend their money. Another way to promote financial literacy is by encouraging children to read them online through articles or blog entries. In this way, they can gather loads of information about how to manage money and secure financial stability in the future.

A great financial/asset management only requires a two-step process. Kids don’t need to know complicated topics about finance, but having a grasp of its simplest ideas could be a great help. The first process is to earn money consistently. This can be achieved by getting a job and get paid on a regular monthly basis or become self-employed establishing one’s own business. It is important to remind children that getting a job that pays well should be their first priority, once they earned their college degree. High-paying jobs do not offer work-life balance, which they might not like considering that they are only at the early 20’s. So, it is advisable to get jobs that pay enough money and offers time to pursue other hobbies like playing basketball, video games, among many other things. And then, parents should instill to their children the importance of keeping their money in the bank. In this way, they can wisely invest their hard-earned money on things that they needed the most like buying insurance policy, owning a real estate property and set aside some cash for emergencies.

The second process is to keep the money they have earned. It is in this aspect that a lot of young professionals don’t accomplish. While a lot of these young men and women earn sums of cash, only a few wisely keep their money in bank savings account. A failure in keeping some money is like working and earning for nothing at all. So, it is only wise to consult to a financial advisor such as Roopanand Rick Paray to help young professionals and kids manage their assets and other forms of investments. It is a basic step to do some budgeting by analyzing the expenses that a person may have to pay for right now and in the future. Have a simple comparison and contrast of the previous and present year’s expenses, and the result of this can be a great insight to project next year’s budget. Financial experts like Roopanand Rick Paray strictly remind people that it is important to stick with this budget plan so that there will be less compromise in their asset allocation.

About the author: Christine K. Sublett is a financial advisor who’s about to open up a financial planning company. She hopes to meet Roopanand Rick Paray and other key financial advisors and receive practical advices she can use for her business.

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