9 money lessons real parents hope their children pick up onApril 18, 2017
This original article was written by Emmie Martin and Samantha Lee for Business Insider.
Mike Nudelman/Samantha Lee/Business Insider
From our staunch loyalty to our hometown football team to the importance of philanthropy, many of our everyday habits and beliefs stem from our parents.
So when it’s our turn to pass down nuggets of wisdom to our own children, those timeless lessons from mom and dad are often top of mind.
Business Insider asked parents with children of all ages to weigh in on the financial side of having kids, and several respondents shared the positive money habits and beliefs they learned from their own parents that they plan to instill in their kids.
Below, we’ve anonymously highlighted nine money lessons real parents hope their children pick up on. (Note: Responses have been edited for length and clarity.
Debt takes away your freedom.
“If you limit your spending, you’ll have more freedom. Debt takes away your freedom, avoid it whenever you can. And if you’re going to borrow, be smart about it and get the best deal you can.”
Do not spend what you don’t have.
Credit cards carry some of the highest interest rates out there and can put you in a financial black hole if you overspend. Not to mention, it can take years to pay off credit card debt.
The importance of working for your money.
“The importance of working for your money. This is the best way to understand how difficult it is to obtain something and give value to labor.”
It’s not the big expenses, but the smaller ones that can get you.
“It’s not the big expenses, but the smaller ones that can get you. So many of us focus on how to pay for the large expenses, such as a family vacation, but don’t necessarily realize how all the trips to zoo can also make a dent and may not be part of our budget. Others may disagree, but it’s the whole picture — big and small, as well short and long term.”
Take care of yourself.
“Curb spending and take care of yourself. My parents had a number of kids and didn’t have the means to overspend or support us after high school.”
You can make money two ways.
“My grandfather owned a haircutting shop for most of his life. He amassed over a half a million dollars on that simple income. He told me you can make money two ways: With your muscles or with your brains.”
Budgeting at a relatively early age.
“Budgeting at a relatively early age. We gave our kids (now grown) a relatively large allowance, but told them that they would use these funds for all discretionary purchases. Movies, clothes, gas, birthday presents, you name it. We bought required items (books, school athletic equipment, etc.).
“We knew that the funds we gave them were not enough to allow them to live the high life; if they wanted more they would work for it. That taught them the value of money, in an environment of kids who were driving expensive cars to high school. They learned budgeting and making choices. Now grown, they are profiting from that lesson.”
Define a want versus a need.
“You need to define a want versus a need. If you need it it should be included in your budget. If you just want it, you need to have the extra money saved somewhere!”
Don’t get caught up with what others have or do.
“Live your wage. Don’t get caught up with what others have or do. You have to only do what you can afford. Make a budget and a savings plan and stick with it! Build wealth slowly.”
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