Money is a highly essential commodity in society today. Money is a tool that gives one the ability to accomplish a variety of tasks. Assistant Professor Daniel Hiebert of the Finance Department in the College of Business states that money is like a brick.
“You can do bad things or good things with the brick, throw it at a window or combine it with other bricks to build a hospital,” he says. Money management is basically utilizing your money to things that you value Herbert says.
Herbert is also a Certified Financial Planner and states that it an academic skill that aids him perform exceptionally at his job.
College life really puts students to task as it tests one on money matters during several occasions, thus it is the responsibility of the individual to manage their money responsibly.
Herbert states that money management traverse across all phases of life and making sure the income one is receiving is more than what they are planning to use is something to keep in mind before spending.
“Living within your means and being financially responsible is a superb principle to managing one’s money,” Herbert said.
Herbert states that although people have the mentality that money is a tangible object, research shows that money is behavioral. In an article in the Wall Street Journal (Berman, 2017) on Colleges Try to Help Students to Manage Finances, the focus is on three aspects; cutting down borrowing, regulating spending & offering incentives.
The article mainly talks about student loans and the amount of debt it leaves students in after they graduate. It explores how educating students on finance management aids them to reduce debt as they go to college to learn and progress to innovative careers that will build society not to incur debt.
“Knowing when to control your emotional attachment to items you hardly require is an excellent way to manage your money efficiently,” Herbert said.
Constant bombardment by advertisers on products that have no relevance in your daily routine is clear in societies with a capitalist framework.
Creating the habit to resist the urge to purchase unnecessary items is vital to establish a good financial standing when it comes to spending your money.
Herbert is learning about financial therapy which is like physical therapy that aids people who cannot control their spending power deal with their financial issues.
“Having someone to consult with on money matters also acts as a form of financial therapy,” Herbert says, “This could be like a significant other, a parent or guardian as they will aid you govern the use of your money or offer some vital advice about finance”
The College of Business is also starting a class in the Spring semester of the 2018-2019 academic year has a sense of financial therapy to it. The class will be a Personal Finance Course that is a 100-level class thus available to every student at MNSU.
The course should have an aspect to it that focuses on careers and their relation to one’s finance in the future.
Herbert states that although it is important to chase your dreams, having a contingency plan in place and making sensible decisions is essentially the reality of living a comfortable life thus this class will be ideal in educating students in basic financial skills.
Money management is generally about focusing on the basics which are regulating your spending, getting what is required and having the knowledge of living within your means.
Money management is crucial to live a comfortable life without the hassle of having to pay debt after debt.
Money is like a tool, if used effectively it can do wonders but if used poorly it can cause more harm than good.
Feature photo courtesy of the Associated Press.