Restricting Money And Resources At A Young Age
Financial Management

Restricting Money And Resources At A Young Age

I thought this was kind of an interesting perspective on something that a lot of people do. I was recently talking to some people where the topic was originally about how everyone got started in terms of starting a business along with the type of attitude and commitment that is necessary to succeed. Now managing finance was a topic that came up and one comment was that most people who are good at it basically had to earn everything starting at a young age and a key thing for parents to do is to only let a child have a certain amount of money or materialistic possessions according to their age. I guess this is similar to the “don’t spoil them” routine.

While that is nothing too new I suppose, the interesting thing was hearing other people’s perspectives on how it is suppose to work. For example, I think the most common belief is that by doing this you are helping to prevent one from constantly whining or demanding that things be given to them in life and to make them earn it. Now the perspective in this conversation was that by limiting a certain dollar amount in terms of how much someone can receive starting at a young age, in turn they will learn to adapt to that small figure as being a lot while at the same time it will make them want to be more resourceful with it. As they get older, receiving more money when they already got used to a smaller amount will help them to make better decisions financially.

In many ways I think that is true from personal experience and all the people that I know personally who seem to have a hard time managing their personal finances haven’t seemed to have gone through a similar scenario. I suppose the tricky question would be how do you teach an adult this as you have to pretty much make your own decisions in virtually every way by then? Like most things, it’s a lifestyle habit and so you can’t exactly just change yourself. The most effective and fun way I have seen, which can hold true for almost everything, is to simply diversify by having more of these types people in your lifestyle as you just naturally observe and learn new things from people everyday. One thing is for sure though, it’s better to start sooner than later.

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