Role of Mathematics in Managing Your Money
Math is involved in our everyday lives. From deciding on a budget to saving up for something we really want, or saving for the future, math is a key component of how we live day to day. Managing money becomes a crucial part of life that will be used in adulthood like accounting finances, paying bills, or even going to the grocery store. This is why it is so fundamental to build a strong relationship with managing money early on.
When you go out to a restaurant, see something in a store you really like (like a pair of shoes, shirt, etc.), or want to go out to grab a treat like ice cream, you may be thinking about how much these items are going to cost; further, you may be conscious about how much money you actually have with you to spend. This is a simple idea that leads to budgeting.
Budgeting is a necessity in managing money as it is something you will likely do for your entire life!
Essentially, budgeting is where you decide how much money you are going to save, spend, or even invest in a certain period of time. A common budgeting plan is the 50-30-20 rule. When you receive income, allowance, or birthday money next, you may look into how this plan can help you use your money wisely. The 50-30-20 rule means that you will use 50, or half, of your money on needs, 30% of it on wants, and 20% goes into savings. These numbers can be manipulated depending on your current stage of life and budgeting to fit your own life. For example, if you receive some allowance, consider finding a plan that speaks to you. Are you a major saver or an impulse spender? An example of budgeting this allowance money could be 50-50, meaning you save half of your money and get to spend the other half as there are no bills or taxes to worry about yet. This is an example of how math can be commonly integrated into managing money as it is a huge factor in budgeting!
Another way math can be found in managing money is through comparison shopping. Imagine you are at a store and see something you really like. Would you immediately purchase the item?
Comparison shopping allows you to compare the prices of items, especially when you want to make sure you can get everything that you need. A way of doing this is to make a list of everything you need or have an item in mind. When you are at the store, you can look for these items and either write them down or internally compare the prices to get the best deal. This is an easy way to also make sure you stay within your budget if you have a list and add up all the prices for the items you want to buy.
All in all, math is everywhere when it comes to managing your money! Managing your money becomes an important responsibility in life and it can’t help to know when math can help you!
