How expensive is it to live in your part of the world? The cost of living is a measure of how much it costs to live an average quality of life – and it varies from place to place. The 2020 world cost of living report analysed the prices of the same 160 products in different international cities. It found Singapore to be the most expensive city in the world, with Hong Kong and Japanese city Osaka not far behind. At the other end of the scale, Argentinian capital Buenos Aires and Karachi in Pakistan were the cheapest cities.
Understanding how to manage money is a key skill that is required for all aspects of daily life. It allows us to make informed financial decisions – from buying products at the supermarket to saving up for a trip. One way of doing this is to be aware of the cost of living; another is knowing how to budget.
Creating and sticking to a budget is an easy way to keep track of money, plan ahead, and avoid uncontrolled debt. For many, debt is a natural side effect of buying a house, a car, or going to university – borrowers know they can pay it back. But when it becomes uncontrollable, debt can have devastating consequences.
It not only makes paying for necessities such as food difficult, but can lead to family breakdown, homelessness, and mental and physical health problems. The best defence against this is to learn how to manage money.
Get started this week by following these budgeting tips.
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- Imagine you were given £2,500. Make a list of three different ways you could use the money. Put them in order, from most to least responsible.
- Think of 10 tips for managing money. Make a poster sharing this advice to put up on the school website.
- Keep a diary of your spending for a week. Note what you spend the most on, and how you could make savings the following week.