How to Learn Financial Responsibility

With 1.3 million Americans filing for bankruptcy between September 2009 and September 2010, financial responsibility is a lesson that needs to be learned. Many people look back on financially irresponsible times and wish they had known better. Thus, this is a skill best learned early in life. There is hope for anyone wishing to learn financial responsibility. The learning curve may be long and painful, but with some attention to your spending habits and personal proclivities, as well as a willingness to make tough decisions and wise choices, you will be able to learn financial responsibility.

Instructions

1. Avoid having credit cards. This will teach you to live within your means. Rather than going into debt buying items you don't need--or necessities because you spent your cash on luxury items--you will be forced to spend only what you have coming in. This gives you the perfect playing field to learn financial responsibility on.

2. Don't take financial assistance from others. Many people, even after leaving the nest, rely upon parents, family and friends for financial assistance. When you go out for dinner, insist on paying your fair share. When mom offers to give you a few bucks for a fun weekend, politely decline. This is all a part of living within your means.

3. Once you get an rough idea of what you are earning and what your expenses are, create a budget and stick to it. You will have to plan for basic necessities such as rent, utilities, food and gas. However, you will also want to take the opportunity to plan things like entertainment. Even if your entertainment budget can only be a few dollars a week, knowing exactly how much you have to spend on having fun will give you guidelines for how to have fun in a financially responsible manner.

4. Include savings in your budgetary plan. You never know when a rainy day might come. Whether it's unexpected car repairs or medical bills, you'll want to be ready for unfortunate and costly events. Conversely, once you have a good nest egg saved up, you can buy things that you couldn't normally buy on a single paycheck or even a month's wages.

References

• US Courts: Bankruptcy Statistics: Filings
• My Two Dollars: Learn and Live Financial Responsibility Early
• EZ Lion: Why Learning Financial Responsibility Early is Important
• Military School Alternatives: Instilling Financial Responsibility in Your Teen