Why It Matters: Personal Accounting

Why learn how to manage personal accounting?

Five pink piggy banks in a rowYou will probably find that of all the business knowledge you have acquired or will learn, the study of accounting will be the most useful. Your financial and economic decisions as a student and consumer already involve accounting information. While it’s true that accounting is most typically viewed as business activity, you’re probably performing some accounting tasks already, such as:

  • Applying for financial aid
  • Balancing work and school (present needs with future goals)
  • Finding and managing other sources of income while you are in school
  • Budgeting
  • Filing income tax returns
  • Understanding credit
  • Financing a place to live
  • Investing for your future (retirement planning)

According to a 2018 survey of more than 1,000 U.S. adults by mobile-banking company Varo Money, 85 percent say they “sometimes” feel stressed about money, and a full 30 percent say they’re “constantly” stressed about their finances.[1] Additionally, the COVID-19 pandemic has caused additional financial stress in almost 9 out of every 10 Americans.[2]

In this module, you’ll be learning about how accounting relates to financing your education, financing the present, and financing the future. If you pay attention to these lessons and apply them in your life, you’ll more likely than not live a financially secure life without the stress that comes from worrying about money all the time.