The Basics of Money Management
This is a video about the basics of money management. It’s a great short video, but you’ll really get a lot from it.
Let us lay it out for you. The video begins with the fact that people need to manage their money as they enter adulthood. It continues with saying that money management is about managing your bank accounts, savings, credit cards, and paying bills.
Most people keep their money in a bank account. There are two types: current and savings. The current is usually where you get your salary from. The bank usually gives you a debit card so that you can with draw money and pay for goods and services via credit and not cash.
The next is a savings account. This is for keeping track of how much you’ve managed to save by keeping what you need to cover your monthly living costs, and also it pays more interest than a current account.
The question is, how much money will you save? In your current account, it’s important to keep enough to pay for your needs such as food, rent, and bills. Also, there should be a little saved in your currents, because of fees from your bank.
For credit cards, you are not using your own money, you are borrowing money from the bank. If you haven’t paid your dues on time, the bank will get interest from you.
Paying bills is important in money management. You can set your direct debits to automatically decrease it from your accounts.