I don’t read much about money management. The fact is that most people aren’t very good at managing their money, and you can’t learn that from your parents if they can’t do it themselves. The problem is that most people simply live from day to day and think: ‘I’ll worry about it when the time comes’.

Money management is actually quite simple, provided, of course, that you know how much you’re spending and how much you’re earning.

Then it’s just a simple calculation: income minus all fixed expenses plus an amount for unforeseen expenses.

As far as fixed expenses are concerned, it’s naturally a matter of setting priorities:

• rent,
• gas,
• electricity,
• water,
• compulsory home and health insurance,
• taxes
• school fees and travel costs to get to work or school,
• money for the pets,
• a budget for unexpected expenses
• telephone/internet
  and then comes food.
  If there’s any money left over, you might be able to buy clothes and shoes, go to parties, spend money on a hobby, and so on.

I have a separate pot for everything myself, and I put a certain amount into each one every month; that way, I can at least celebrate the children’s birthdays, the pets always have food, and I’ve also set something aside for unexpected expenses – and believe me, those expenses are always many times higher than expected.

It’s a shame that you bring up a topic and don’t go into it in more detail; that’s of no use to anyone, of course, and you don’t learn anything from it either. Besides, I think the whole family should be involved in the spending and also in drawing up a budget. Only then will everyone be in the loop, and partners won’t be caught off guard if one of them dies or leaves. It’s also important for children to see how much money comes in and how much actually needs to be paid out, and that choices always have to be made – unless, of course, you’re incredibly rich, but even the rich set priorities and decide what to pay for first.

I don’t see anything about your personal experiences; if you were to include them, your piece would certainly be interesting to read, and perhaps you’d also have a personal message to share.