Can Money Management decrease poverty in the future?

Poverty is a global problem where just one idea will simply just not end poverty as a whole it will take years and many different ideas combined. Money Management by its self will not end poverty but I believe it could make an impact on the future generation and the present generation if practiced properly.

One reason some people live in poverty is because of their lack of understanding of how to manage and spend their money. I have seen it first hand where people spend money they just do not have and they do this mainly to just “fit in” as Rowe states, “many participants comments expressing pride in times when they had “managed their finances well,” acknowledging the association of improving their money management with the achievement of long-term goals, and developing ideas for spending more wisely.” (2013) With a firm understanding of money management, you will often spend more wisely not buying pointless items that you just do not need. Some people in poverty are just unaware of how to budget and plan their finances out and if we’re taught properly it would solve this issue and result in smarter buying habits and saving habits. “If I don’t need to spend, don’t spend it I used to spend everything $700–$800 weekly, I used to spend it on dope I have learned a lot from my sister I am doing very good. I am proud of myself.” It is never too late to learn money management a 50-year-old man who struggled with addiction used to spend all of his money on dope he did not know money management. The 50-year-old man’s sister had knowledge of money management and taught her brother how to budget and gain control of his finances, the man went from spending all of his money on unnecessary harmful substances to now budgeting and spending his money more wisely living a more comfortable life. Now if we could apply this same concept with people living in poverty we could see some remarkable results.

If money management was taught in schools just like math and science children would grow up already knowing how to manage their finances and would be ahead of most people in past generations.

Rowe et al (2013), “Recovery and Money Management” Vol 36(2), pp. 116–118.