Identification

• Money management involves making the best of what you have today while looking ahead to what you need for tomorrow. To assist you in doing this, money management education encompasses both processes and principles. Process education explains the "what" of money management and provides instruction for doing "things." Principles education helps you develop an understanding of the "why" behind each process. Both are equally important and necessary for developing effective money management skills and a mindset that allows you to make smart decisions.
  
  

Types

• There are as many types of money management education as there are ways to spend your money. Starting with the basics, education types can include processes and principles involved in goal setting, budgeting, banking, credit and debt, and saving and investing. Any one of these individual areas can be broken down further and include more specific education such as understanding how credit cards work, dissecting the components of a credit score, or understanding interest rates.
  
  

Timeframe

• Money management education should be an ongoing aspect of your life from childhood through retirement. Different life stages require different methods of money management, and life events such as marriage, divorce, having children and paying for college require special consideration and education. You can never be too young or old to begin money management education. Children can learn to manage an allowance, teens can begin to develop good banking and savings skills and adults can get education relating to the purchase of a home or how to save for retirement.
  
  

Process

• Money management education is a process of understanding, planning and execution. Money management education usually begins with principles. It is easier to complete a task such as saving money if you understand the "why" behind the task. More involved processes such as investing require education in basic terminology and investing options before you can begin the process. Next comes developing an understanding of your current position and situation before establishing goals and beginning the planning process. Execution of money management plans involves the process part of money management education.
  
  

Considerations

• Money management education does not have to cost money. While you can purchase books or enroll in training courses that charge a fee, free education is widely available. Consider the type of education you desire and decide whether you prefer outside assistance or want to learn on your own. For personal assistance, your local bank is a good place to start. Develop a relationship with your banker and receive free education in the process. If you prefer to learn on your own, the Internet is the place to go. Bank websites, government sites and consumer information sites all contain free money management education resources.