Numbers govern the world that we live in. They are not just used for picking the winning lotto numbers, counting how much we have in our bank account, ordering things, and doing math. They are significant in all aspects of our lives from our birth dates to our date of death. Numbers have a place in all areas of our life. Dates are numbers, time is a number, measurements are numbers, money is a number, math is numbers, and doing math is key to properly handling money. The real science behind money is numbers.
If a simple exercise is performed by looking at how your day is spent you will see how important numbers are in all of our lives.
You’re probably wondering what your daily routine has to do with money. The underlying premise behind money is numbers. Have you ever asked yourself why certain denominations are used for currency? In the United States there is the penny or one cent, a nickel 5 cents, a dime 10 cents, a quarter 25 cents, dollar coins, dollar bills, a 5 dollar bill, ten dollar bill, 20 dollar bill, and 100 dollar bill. The why is for a class, but how many times have you told yourself I am not good at math or I don’t like math. Subconsciously you are telling your brain that you don’t know how to deal with money. Not knowing how much you have is at the root of overspending, and overspending is at the root of not accurately calculating how much you have. Overindulgence and overspending are two needles on the same continuum.
It’s one thing to create a budget, reconcile a bank account, and start a savings jar or account. The real work comes in overcoming the programming that you’re not good with math. Last year the U.S. Department of Education released the results of a study which indicated that only 33% of eigth graders were proficient at math. A U.S. News report article sites that this is because of how math is taught in the U.S. , but how we think about math may be underlying our poor math skills compared to other countries. This poor math performance may also be tied to how Americans deal with credit, money, and how money is valued. No matter how you do the math nothing plus nothing is always going to equal nothing.
Written by Lakisha Lynette Bealer, MBA