The most prevalent obstacle of a majority of adolescents is related to their sense of money management. Therefore, managing each individual’s expenditure and separating their spends into organized segments is an urgency. each individual must have a money management scheme to diminish their unessential purchases. Furthermore, various segments of an effortless money managing scheme will be advised.
Each individual has vital needs which have to be necessarily provided. Namely, food, clothing and rent. Hence, every detailed aspect of each individual’s essential purchases must be calculated in order to foresee their monthly payment effortlessly and be prepared for them.
Moreover, another essential purchase is each individual’s monthly entertainment. Such as, going to the cinema, a simple dinner with friends or hobbies such as golf, football and more on. Excessive entertainment leads to excessive spending. Whereas, omitting this segment will raise concerns about the individual’s mental health. Consequently, omission is not an ethical choice. Accordingly, balancing this segment seems to be the key aspect of money management.
The third segment is dedicated to unpredictable events such as illnesses, damages to the house, car, tv or similar objects. Which is not a monthly payment, but must be considered and be saved for the future. Luckily if no unpredictable or little unpredictable events occurred, that individual can use those savings to enhance their living situation. As an example purchasing a better car or a better house for themselves.
In conclusion, there seems to be three various segments which must be considered in our management. Vital needs, entertainment and unpredictable events. A primary purchase is related to the vital segment, and the other two segments are covered with less than half of our money management.