A lot of young people do not know how to manage their money when graduating from high school. What do you think are the reasons? What can be done to teach them this important skill?

Financial management is a skill that needs to be acquired with a lot of experience in life. In

this

contemporary world, the majority of young people do not know how to maintain their earnings by the time they are graduated. There are several

reasons

like lack of accountability and responsibility, which can be inculcated in them with some basic guidance.

This

essay will cover in detail the above-mentioned

reasons

and lessons to overcome

this

problem. On the one hand, there are important

reasons

that can be considered for

this

situation.

To begin

with, in

this

modernized world both parents should equally earn to manage expenses for their entire family including children studies.

Subsequently

, the daily pocket

money

provided to kids while schooling is quite high,

besides

that, they are given with freedom of spending that as per their wish.

As a result

, juveniles are missing the accountability of

money

and never worried about the efforts that are required to earn

money

.

For example

, 7% of GST collections of India are coming from expenses incurred by the school students.

On the other hand

, all the family members should teach children about the value of

money

and the efforts that are going into the process of earning

money

as a lesson.

Moreover

, the responsibility of saving

money

wherever it is possible to be taught to juveniles in every family.

For instance

, parents should start to limit expenses towards buying the expensive gifts as and when they insist,

otherwise

, kids will attain the same kind of attitude in future to buy whatever catches their eye attention.

Hence

, they will be able to adopt the

money

management culture which helps them in future. To conclude, a lack of accountability and responsibility are important

reasons

for not understanding the importance of financial management at a young age. It should be taught as a lesson to build

this

skill in every child in their school-age understand the importance of monetary value.