Sasha Abena Meade and her husband have just purchased a laptop and a personal finance software for their teenage daughter. They say they want their daughter to learn prudent personal finance principles early, and they think the best time to do that is in her high school days. Sasha and her husband are but just one couple who have purchased personal finance software for their daughter. Many are doing the same thing.
Personal finance software helps users manage their personal or small business finances in an easy way, without having to learn any accounting jargon. Personal finance software has been around since the introduction of the personal computer. Over the years, we have witnessed a complete evolution of personal finance apps into what they really are today. Is there really any benefit in purchasing a personal finance software for a teenager? I will provide you with some answers.
Early Acquired Habits Become A Part of Children
Many say kids learn several skills easily, and when they do learn them well, they become part and parcel of them. I am sure you can list a few. When asked to list skills children learn easily, many listed languages. After moving to a new country, a couple struggled to learn the local language, but within a few months their children could converse in the local language.
If there is one skill parents want their children to learn well, so they can apply later in life and become better adults, it is good personal finance management skills. Purchasing personal finance software for them is only a stepping stone. When they consistently use personal finance software to manage their finances, small as they may seem in their teenage years, they will gain excellent personal finance skills.
To Help Them School Their Wants And Expenses
As human beings, our wants are many, but our resources are limited. Children must learn the difference between wants and needs. A need is a deficiency given a particular situation, while a want is something we crave for. It is important that children learn the difference between the two. Personal finance software helps children learn that by teaching them how to budget. When children create budgets, they learn how to allocate their resources. They see where money is coming from and where money is going to. In most personal finance applications, one can set a spending limit notification, so that when one exceeds a certain percentage of the budgeted amount for a particular category, a notification message is displayed. By consistently tracking income and expenses using software, children learn to control their expenditure.
To Teach Them How To Save
Aside the budgeting tool, there are reports to provide them with information on the amount of money spent per category over a chosen time period. Children spend money daily, but many of them have no idea of the amount they spend on many categories in a year. When children run reports, they are surprised by the amount of money they spend each year. Many learn that by reducing a bit in a particular category, they are able to save for some other things which they want so badly.
Some personal finance apps have a special savings module to help users save. They can make virtual deductions from accounts on a regular basis to help users reach their savings goals.
To Teach Them How To Invest
Investment tips and techniques are priceless, and teaching your high school kids this skill is definitely the right thing to do. Most personal finance applications have a module or a feature that allows users to manage stocks, mutual funds, and bonds. As your children purchase a few equities, and track them with software they will gain valuable investment skills.
To Teach Them How To Forecast Finances
Many personal finance applications allow users to forecast transactions and account balances. They even allows users to create what-if scenarios. To do this, the software uses scheduled bills and deposits, budget data, and trends in the register. Children must play with these tools. This, along with their accompanying graphs, allow them to forecast their finances. It also teaches them a lot about what is contributing to their desired outcome. The what-if scenarios allow them to go a step further, providing them with further insight.
Sasha and her husband will soon be smiling, as their teenage daughter gains these skills while using the personal finance software they just purchased for her. Purchasing a personal finance application for your teenager is definitely a must for every parent. Your teenage children will not forget the valuable skills they will gain from using personal finance software.