It is a new month and like clockwork the bills are due. Geico wants their car insurance payment, Sallie Mae is expecting your student loan payment, and there is a growing office rumor surrounding layoffs. It is clear that there is far too much on your plate and as the thought of your checking account dwindling further incites more fear, you start to wonder if your fears are tied to your overall lack of money management skills. As you continue to jog your memory, you feel certain that at least one adult sat with you to discuss money (and its uses), but you know this to be false. There is no more time to skirt around the fact that you may be both unaware of what money is and how the functions influence one’s relationship with finance. If you feel as if you "missed the boat" on acquiring the necessary skills from an adult, the opportunity for self-education is abundant.
Reflecting upon my first conversation with my parents about finance, I remember how confident, yet nervous, they were. Ultimately, their anxiety subsided once they settled on their approach, tone throughout the conversation, and how collaborative they would be in articulating the topic. Candid and open, they went as far as showing me their pay stub, explaining the intricacies of their paycheck such as gross and net earnings, Medicare, and federal taxes. Likewise, they explained how money the earned was dispersed throughout our household. While this proved to be successful in my early development and understanding, I grew to comprehend that every family is different and every interaction would yield different results. Nevertheless, no matter if the conversation starts at six, or the independent research begins at 26, putting forth the maximum effort should occur and consistency is the key. While conducting your research, it is important to understand that one’s relationship with money is ever-changing, evolution is inevitable. Thus, as a matured, my understanding of money evolved from the initial concept that it was (literal) paper that “grew on trees” to being one source in defining wealth. Moreover, upon sitting in my weekly Money and Banking course at NYU, I discovered that the 6.14 inches long by 2.61 inches wide rectangle ultimately held more weight and value than I could imagine. As such, ascribing one, solid definition to money would be difficult. However, after conducting further research and immersing myself into dialogues, I comprehended an essential takeaway: there are three functions of money -- medium of exchange, unit of account, and a store of value. As you continue on your journey of financial self-reliance, begin building the confidence needed to help develop healthy fiscal habits!
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WhitneyEducation enthusiast whose mission it is to see Financial Literacy receive well-deserved shine. Archives
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