Money for Your Life: Invest in Your Financial Future

Money for Your Life: Invest in Your Financial Future — page 5 — Where Your Money Comes From Take a look in your purse wallet or back pocket Are you flush with cash Likely not unless you are fortunate enough to have wealthy parents or a generous grandparent Most people work hard to earn their money Knowing where your money comes from is one of the first steps to managing it An allowance a part-time job and gifts are all sources of money Most allowances are given by parents or caregivers They are set amounts that may be tied to some form of work such as chores Jobs are usually paid hourly so that you get a set amount per hour worked That money is ongoing for as long as the job lasts If you are lucky you may get gifts of money for your birthday or Christmas These gifts are great but they are temporary Once you have a handle on where your money comes from you can put a value on it It will help you make smart decisions about what to do with your money LOAN DOWNPAYMENT CREDIT CARD PURCHASE MONEY FINANCE TRUST INSURANCE PERCENT BANK Whether they are talking about buying a gift for a friend or getting a loan to buy a new car for most adults money is a part of the conversation of everyday life And learning the language of money is a big step on the path to financial literacy and success 6

Money for Your Life: Invest in Your Financial Future — page 6 — Speaking of Money Teaching kids sound financial habits at an early age gives all kids the opportunity to be successful when they are an adult Warren Buffett influential business executive known for his financial skill and generous support of charitable causes Learn the Language of Money Financial literacy is about learning the language of money and becoming comfortable speaking that language It’s about understanding how to earn money keep track of it and save and spend it wisely Mostly financial literacy is about learning how money works and how it can work for you Many people consider money a taboo subject or something that is not acceptable to talk about in public Not talking about money though can lead to financial problems in life Living Close to The Edge More than half of all American adults live paycheck to paycheck That means they receive a paycheck at work spend their money on bills and necessities and have nothing left until the next payday They never get ahead They can never save for something special They never set aside a stash of cash for emergencies It’s a frustrating way to live There are many factors that contribute to living paycheck to paycheck Some have to do with declining wages and job opportunities and higher costs of food and housing Others involve inequality between wealthy members of society and the working poor who live in poverty even though they have jobs There are also historic and stubborn cycles of poverty that so many people cannot break free from no matter how hard they work Many of these factors lie beyond the control of average citizens For example money is often passed down within families meaning that the same people will stay wealthy These people often have the cash to start businesses and make a lot more money Sometimes job opportunities are only available to people who live in certain expensive cities Still there are ways that can help prevent people from living paycheck to paycheck One great way to fight falling into this cycle is to launch your financial literacy learning ASAP 7

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