Page 313 - Keys To Community College Success

How You Perceive and Use Money

How you interact with money is unique. Some people spend earnings right away, some
save for the future. Some charge everything, some make cash purchases only, others do
something in between. Some pay bills online and others mail checks. Some rewards
people seek are measured in dollar amounts and others in nonmaterial terms. Your
spending and saving behavior tend to reflect your values and goals. As you analyze
who you are as a money manager, consider these influences in Key 11.1.
Improving how you handle money requires that you analyze your attitudes and
behaviors. Says money coach Connie Kilmark, “If managing money was just about
math and the numbers, everyone would know how to manage their finances sometime
around the fifth grade.” Begin your analysis by looking at needs versus wants.
2

Needs Versus Wants
People often confuse what they need with what they want. True needs are absolutely
essential for your survival: food, water, air, shelter (rent or mortgage, as well as home
maintenance costs and utilities), family and friends, and some mode of transportation.
Everything else is technically a want—something you would like but could live with-
out. When people spend too much on wants, they may not have enough cash for needs.
You might want to buy a $1,000 flat-screen TV, but might regret the purchase if your
car broke down and needed a $1,000 repair.
Check your spending for purpose. What do you buy with your money? Are the
items you purchase necessary? When you do spend on a want rather than a need, do
you plan the expense into your budget with an eye toward a specific reward, or buy on
the spur of the moment? With a clear idea of what you want and what you need, you

KEY 11.1 Many factors affect how you manage money.

Managing Money

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