It is acknowledged that many school leavers do not have personal money management skills. In this essay, I will evaluate the underlying reasons before analysing the tactics of managing personal funds.
Several factors indeed contribute to the lack of money management ability in young people. In the past, challenges in making ends meet were made for graduates due to the limited occupation and demand. Thanks to the introduction of job-finding centres, it is somehow easier for young people to turn a profit. However, as a consequence, rash financial decisions are made since inexperienced graduates may buy things on impulse. Additionally, no longer living in parents’ shelter may lead to confusion in categorising money into daily needs and thus failing to provide for themselves.
A multifaceted approach is required to tackle this problem. First and foremost, money management skills could be included as an optional subject for students in high school. Once these essential lessons are incorporated into their curriculum, young people will have the capacity to budget their finances effectively. Secondly, parents should play an integral part in teaching their children how to earn, save and use money wisely. They can give an amount of funds for lunch and stationery to their children per month. This requires the young to use the money properly because they can not ask for more until the next month.
In conclusion, the high rate of graduates with no money management skill is a complex issue with multiple underlying causes. To address this problem, comprehensive solutions are needed, involving an education approach and parents’ intervention.