Question: Do you have to know how to manage money?
Answer: No. If you don’t make any decisions about money, then you don’t need to know how to manage money. I suppose it would be similar to driving a car—if you never drive a car, then you do not need to know how to drive a car.
Complete Answer: If someone else makes financial decisions for you, there is no need for you to know how to make good financial decisions. For example, a baby makes no financial decisions, those decisions are made by the parents. As we grow older, usually around the early teens, we are given the opportunity to start making decisions about money—how to spend our lunch money, what shoes we like, what movie we would like to see… By the time we are adults, we have to make most, if not all, the decisions about our money. So it follows that if you will be making decisions about money, you would benefit from a basic understanding of money management, “financial literacy.” These decisions will impact your financial well being now and in the future.
Luckily, we live in a country that values freedom, and this includes freedom in the market place—we get to spend or not spend our money however we wish. This coincides with a basic tenant of the Church that we all have free will, and that includes freedom to make decisions about money. We have the freedom, as well as the right, to make financial decisions
Financial Literacy Knowledge/Skill: Money management skills (financial literacy) will help you make prudent1 financial decisions.
Comments or Questions: Thank you for visiting the Financial Literacy Life Skill site. Please feel free to submit comments and questions you may have about managing your money (Financial Literacy).
Next Week’s Topic: “Do you need a budget?”