The New Rules Of Money Aren’t That New

According to a poll conducted by Harris Interactive for the National Council on Economic Education both teens and adults scored low when asked about basic economic and personal finance concepts.  Actually, the teens scored an average of 53 which is a failing grade.

Although the tools with which we manage our money have become more complex – Internet banking, online stock exchanges and personal financial planners – the rules of spending and saving have not changed that much.

Liz Pulliam Weston from MSN Money offered some timeless money management basics:

• There is a difference between needs and wants. Just because you can buy something doesn’t mean you need it.  Determine what’s necessary for you personally and for your business and then make educated and resourceful decisions.

• Every money decision has a cost of its own. When you choose to spend money in one place, you are choosing to not spend it in another.  You may defer full-time work (making money) when you choose to attend college (spending money), but in the long run you’ll likely be much more financially sound because of the education you’ve obtained.

The new rules of money are similar to the old rules - like don’t spend more than you make, and invest in yourself. These are two rules that will never change.