Young People Ask: How can I control my spending?

“I often catch myself making plans to buy something that I really do not need, and probably cannot afford, simply because it’s on sale.” Anna, Brazil.

“Sometimes my friends invite me to do things that are socially costly. I want to be with my friends, have fun. Nobody wants to say, ‘Sorry, cannot afford to go.”-Joan, Australia.

Do you think you never have to spend enough money? If your allowance was a little bigger, you could buy the game you want. If only your wages were higher, you could buy the shoes you “need”. However, instead of worrying about money you don’t have, why not learn to control the money that does pass into your hands?

If you are a young person living with your parents, you could wait until you leave home to learn how to manage money. However, that would be like jumping from an airplane without first learning to use a parachute. It is true that a person may be able to figure out what to do while hurtling towards the earth. How much better, though, if he learned the basics of using the device before you leap!

Similarly, the best time for you to learn to manage money is before the harsh economic reality of life in front of you. “The money is for protection,” wrote King Solomon. (Ecclesiastes 7:12) But only protect you if you learn how to control your spending. Doing so will boost your confidence and increase respect your parents for you.

Have you ever asked your parents to explain what is involved in maintaining a home? For example, do you know how much electricity, heat and water costs each month and how much it costs to run a car, buy food and pay rent or mortgage? You might think those details would be boring. However, remember that you will help to engage in those bills. Also, if you leave home, you will have to start paying for these things. It so could well learn from them. Ask your parents if you can see some of the bills, and listen carefully, as they explain how the budget for them.

“A wise person will listen and take in more instruction, and a man of understanding is acquiring the business direction,” says a biblical proverb. (Proverbs 1:5) Anna, above, says: “My father taught me how to budget, and showed me how important it is to be organized in the management of family funds.” Meanwhile, Anna’s mother taught him other lessons. “She showed me the value of comparing prices before buying,” says Anna, adding: “Mom can do wonders with a small amount of money. What has been the benefit to Anna? “Now I can take care of my finances,” she says. “I carefully control my spending, so I have freedom and peace of mind that comes from avoiding unnecessary debt.

Certainly, control your spending is easier in theory than in practice, especially if you live at home and receive an allowance or earn money with a job. Why? Because your parents are like can pay most of the bills. So a large percentage of your money may be available to spend at will. And spending money can be fun. “Spending is very easy for me, and it’s nice,” admits Paresh, a young man in India. Sarah, from Australia, feels similarly. “Buying things gives me a thrill,” she says.

Moreover, your colleagues may pressure you to spend beyond reasonable limits. Ellena, 21, says: “Among my friends, going shopping has become an important form of entertainment. When am with them, seems to have an unwritten rule that money should be spent if you’re going to have fun”
Naturally, you want to fit with your friends. Nevertheless, ask yourself, “Am I spending money with my friends because I can afford, or because I feel?” Many people spend money in an effort to boost its reputation with friends and colleagues. This tendency can cause real financial problems for you, especially if you have a credit card. Suze Orman a financial advisor warns, “If you feel the need to impress people with what you have instead of who you are, you are at high risk of credit card misuse.”

Instead of overspending with a credit card or spending your entire salary on a night out, why not try Ellena’s solution? “When I go out with friends,” he says, “I plan ahead and calculate a limit for my expenses. My payment goes directly to my bank, and takes only the amount I need for that outing. I also believe it is wise to shop only with those of my friends who are careful with their money and who encourage me to shop around and not buy the first thing I see. ”

Even if you do not receive an allowance or money from a job, you can still learn valuable lessons about money while you are living at home. For example, when you ask your parents or ask for money to buy some item, they can say no. Why? One reason may be that your wants cost more than the family budget can bear. By saying no to your request, although they might prefer to say yes, your parents are setting you a good example in self-control. And self-control is vital to good money management.

Suppose your parents can afford to say yes to your demands. Even then, they can still say no. You may think you are only meant to be. Even so, consider: It may be trying to teach you the important lesson that your happiness does not depend on obtaining everything you want.

Some cultures have a saying, time is money. This emphasizes that people should spend time making money and wasting time is losing money. The opposite of this saying is true money is time. Where a waste of money, you’re really losing the time it took to earn that money. Learn to control your spending and learn to control your time. How is that?

Consider the comments of Ellena. “When I control how much I spend, I control how much I have to earn,” she says. “By creating a workable budget and stick to it, I don’t have to work long hours to pay off large debts. I am more in control of my time and my life.” Wouldn’t you like to have that kind of control over your life? So, spend your money wisely!