Student`s Budgeting, Free Essay for You

Budgeting refers to the process of planning on how you spend your money, and it requires one to balance their expenses and the income. Budgeting is the most basic and effective method for managing and controlling your finances. I do believe budgeting is an important aspect to be emulated by young people both in school and those working. Budgeting helps college students to plan their money by reducing unnecessary expenses and limiting how much they need to borrow. Budgeting and disciplined spending make young people responsible adults in the future. I support the idea that parents should make young people create budgets and remain disciplined towards their spending budget. It is only through budgeting that young people will be able to meet their short and long-term financial needs.

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Budgeting helps the students to be responsible and develop accountable mind-sets an approach that can be used to promote saving for more significant goals. Budgeting enables students to avoid unnecessary spending since they are aware of how much they are supposed to save which creates room for savings. Budgets also act as a reference for organizing your financial statements and prepares young people to be able to keep good records to file taxes in future. Budgeting helps students to achieve long-term goals by creating a budget plan that allows them to organize their priorities and save up for money to start a business, build a home and even further their education in future. Young people should be able to set their future goals early enough. Goals keep young people focussed and not to spend on items which do not contribute to achieving their long-term goals.

Today, the world is changing and managing money is an important approach to prepare young people for growth and future responsibilities. Many people make mistakes such as poor management of resources and money because they were not prepared to budget in time. As a result, student budgeting ensures that one has enough money for what is necessary for their growth and help keep students away from debt as they grow up. More important to keep a budget one can realize their long-term goals and helps students to establish measures through which they can be able to achieve them. Debts accrued due to lack of preparation and saving makes it difficult for people to achieve long-term goals because they are required to pay the debts with accrued interests.

Budgeting helps students to learn disciplined spending practices which ensures that they spend only what they have and does not use debt and credit which are financial liabilities. In most cases, emergencies come unannounced and do not allow one to prepare enough. Students budgeting helps them to learn to save which could help them in future in case they are laid off from work or in cases when there is a disease emergency. Budgeting can shed light on bad spending which helps students to avoid behaviours that do not add value and emulating long-term savings.

In conclusion, parents should encourage and teach their children the importance of budgeting at a tender age to enable them to be aware of financial opportunities such as investments which can only be achieved through savings and avoiding debt. More importantly, when people learn to budget their spending at a tender age, it makes it more appropriate for them when they grow up to continue their budgeting and saving habits.