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Financial Management

Financial management is vital for students and young adults to learn. Several factors can affect their spending and saving habits, including their budget or allowance, school and living expenses, social status, location, financial literacy, peer and parental influences, and self-control. How well they manage their money will impact their ability to pay for education and living costs in the future. Developing strong money management skills at a young age helps prepare them for independent adult life.

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324 views2 pages

Financial Management

Financial management is vital for students and young adults to learn. Several factors can affect their spending and saving habits, including their budget or allowance, school and living expenses, social status, location, financial literacy, peer and parental influences, and self-control. How well they manage their money will impact their ability to pay for education and living costs in the future. Developing strong money management skills at a young age helps prepare them for independent adult life.

Uploaded by

Xiena
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Financial management (spending and saving habits) is vital in students and young adults’

life. Money is very important in student life, who are mostly young adults that have already their
own perspective in life and preferences on things they need and want, but it can also be
dangerously affect them if not managed well. It is better to know the factors that would affect a
student and young adult’s financial management as part of having a strong fundamental in financial
management. This could help them prepare in stepping working life and even managing their daily
lives as they take a step on maturity phase. The possible factors that are could affect a student and
young adult’s financial management or their spending and saving habits includes- size or school
budget or allowance; school contributions; social status, lifestyle and preferences; location of
campus; financial literacy; peer group and parental influence; and self-control. Adolescents
have larger budgets and are more willing to spend. They make many independent choices and
allowances can affect how he/she manages his/her money- mostly those who have given larger
budget tend to spend more knowing that they got more on their pockets while those with limited
budgets choose to save up than spending to unnecessary things. But it’s not always the case, there
are still these students or young adults that didn’t take advantage having greater allowances and
able to save up more. Youth also have to go through different financial decisions as they have to pay
for colleges, take credit to pay such expenses-school contributions, events, projects and even dorm
expenses. This factor also relates to the earning capacity of their parents. Family financial
difficulties reduces the productivity in work place, affect the health physically, economically and
psychologically and youths basically get support from their family members like monthly allowance
to support their student life and live, as a whole. The social status or the level of social life they
engage in can also be a huge factor affecting one’s financial management, considering the use of
social networks, mobile technologies and other means of communication influence consumption
that are usually practiced by those students and young adults who belong to middle and upper
social class. This factor also comes with one’s lifestyle and preferences towards things such as taste
of foods and fashion. The location of the school and even the place a student or a young adult is
currently living may be a factor that influence their money consumption, especially those campuses
located in the cities where malls, cafeterias, and leisure places that can easily attract students and
youths to visit. Another factor would be the financial literacy. Awareness of how saving up money is
important in the future, knowledge of basic financial management, understanding the importance
of planning daily and monthly expenses and the opportunity to have when doing extra works to
earn and save money can really help a student or a youth control their money consumption while
those who are illiterate about these matters would probably don’t care about where their money go
or saving up for future use. Influence of peers remain strong socializing agents throughout young
adult phase. They become less dependent on their parents and more oriented towards their peers
as well as to the adult world as they compare their status with peer, discuss money management
issues, spend their leisure time and involve in spending activities. Making this as one of the major
factors affecting financial management of youths. Parental influence is also a factor especially when
youths usually get money from their parents, if they are willing to give you more after knowing you
already spent it all, when they constantly ask you to save up money, and they actually have
observed them saving and spending up money. Lastly, how student and young adults manage their
funding primarily depends themselves, on how they control their saving and spending habits no
matter what their social status is, needs and wants, what their friends told them so or how their
parents handle money in the family. Spending and saving money is also a matter of surviving life as
most of the things in this generation are moved by money. As a student and also a young adult, we
must be aware of how we manage our money, no matter the amount, and on a young age, be able to
know and discover strategies on how to earn money and that we won’t depend everything on our
parents.

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