Lessons On Managing Money

By Tanjua Damon

Ed O’Malley from Western Connecticut Federal Credit was the speaker during the program titled “Managing Your Money – Risks, Responsibilities & Rewards” that was sponsored by Newtown Youth Services for high school students and their parents to learn about ways for students to be responsible for their own money in a positive way. The program was June 26.

“The skills that we talk about tonight are skills you need whether you are 15 or 95,” Mr O’Malley said. “Money is a responsibility.”

Mr O’Malley told the audience that Americans are not the best savers. But he encouraged the group to save five percent of every paycheck and put it aside for an emergency, for instance if they lose their job and still need to pay for their expenses.

“We should be more street smart because there is more information available to us,” he said. “You need to sort out the important stuff. Start to develop good habits.”

A budget is always a good place to start, according to Mr O’Malley. Students who are going off to college should sit down before they go to see how much money they have coming in and what their expenses really are. Most students forget about the miscellaneous column, which generally costs more than the money students actually have coming in.

“Miscellaneous comes with the people who aren’t responsible,” Mr O’Malley said. “These are the people who don’t budget. Experience is what develops a budget. No budget is good unless it is refined.”

Making choices is a big part of a budget and being responsible with money. He reminded the students that even though they may want something, they may not need it. Learning how to budget is an effective skill for the future when they are on their own.

“You’ve got to make choices. You have to adjust,” Mr O’Malley said. “My expenses I want even lower than what I have on hand. If I have something left over I can save. People who don’t know how to make ends meet are at a disadvantage to people who do. Habits create responsibility.”

Mr O’Malley reminded the students that budgets need to be flexible. Most college students cannot afford to eat out every day and will have to make the choice to eat in the cafeteria to meet their budget needs.

“You need to get a discipline. Get a measurement,” he said. “Things are not always in your control. Rainy day savings isn’t a joke. It’s all about you. If you don’t do it for yourself now, chances are you won’t do it until you have hard times.”

The program was also an opportunity for parents and their children to see what kinds of accounts can be set up so their children can learn to be responsible with their money and prepare for the future.