Keep a Lid on Spending
A 27-year-old teacher in Beijing
As an old Chinese saying goes, if you don’t pay attention to money management, money won’t pay attention to you. With good money management, you will be able to handle your income and spending better so you can have much more choices in terms of improving your financial status.
Being good with money takes time and practice. But it could be as simple as basic addition and subtraction. Taking some time to manage money can really help to stay on top of the bills, and still save thousands of dollars each year.
If you don’t have a budget, get started by developing one. Categorizing your spending with notes or apps such as WeChat or Alipay, you might be familiar with all the expenses that line up in your list. By doing so and setting up a limit for unbudgeted spending within a couple of hours, you may keep track of all your daily or weekly spending and discover the value that budgeting will bring to your life. Listing out all expenses might seem a little boring, but it is definitely worth it, especially for those who are bad with handling money.
Next, saving up for big purchases is of great importance for most families because you can give yourself time to think and compare prices. By saving up rather than using credit, you avoid paying interest on the purchase. Make an emergency fund by paying small amounts into a savings account every month. Once you’ve done that, you are ready to take a holiday, buy a new car and even have some extra money for unexpected urgent situations.
In addition to all the above, remember to look for discounts, coupons, and cheaper alternatives whenever you can. Thinking twice before buying and evaluate whether the purchase is necessary.
In my view, I think both teachers and parents are responsible for teaching children how to manage their money wisely and have their own financial responsibilities. Education plays a big role in shaping their children’s financial habits and they should be aware of it. And remember that this takes some time to get used to, so don’t expect to become an expert overnight. Life will be much easier when you have good management skills.