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Try to stay out of debt and plan a head. My parents used a credit card sparely and planned far ahead for the future when they were young, by buying cemetery plots and slowly paying them off over the years. That seems to be something most people don’t even seem to think about today.
Like Adam, I don’t remember receiving explicit “money advice” from my parents at any time in my life. And, unfortunately, I don’t remember asking for any advice, and this was my mistake. However, by modeling and unspoken expectations, my parents taught me to save. I remember opening my first savings account when I was 7 or 8 years old. I wasn’t told but I knew that I was expected to save the money I earned from snow shoveling and lawn jobs, from birthday and Christmas gifts, and from my reward for good grades on my school report cards. I enjoyed the weekly trips with my father to the bank to deposit any money I had earned the previous week. I also remember my satisfaction at seeing the amount in my account increase every month when the interest was credited. I have been a saver to this day, some 68 years later. Even now, I save and invest a substantial percentage of the money that comes into our household each month from pension payments, Social Security, and annuities. Don’t get me wrong… I also enjoy spending money, primarily on travel and vacation experiences, gifts to our children and grandchildren, and charities. But, I automatically deposit money into a number of savings vehicle – Money Market Accounts, CD’s and a self-directed portfolio of Mutual Funds and ETF’s – every month. I get real satisfaction from seeing the value of these accounts grow, and I take comfort in knowing that we are highly unlikely of ever running out of the money we need to live the life we desire. For this I thank my parents for their expectations of me as a child and the silent modeling they provided.
The only explicit advice I received from them was “get life insurance” while expecting my first child. Otherwise my learning from them was through observing their habits – mainly gambling and overuse of credit cards. I try hard to give my kids good financial advice although I don’t think much of it has really “sunk in” yet (they’re single and in their 20s).
My parents taught me how to stretch a paycheck.
Always pay utility bills on time, because reconnect fees are expensive. Start buying ingredients for Christmas dinner and treats in November, to spread out the expense over multiple paychecks. If you bring ham sandwiches and lemonade along, it’s less expensive to make the long drive to see Grandma. Be very careful about charging things today, because you won’t like the bills later. When you pay off the car loan, put the payment amount in savings, both to build up a downpayment and to avoid getting in the habit of spending that money on something else.
Pay yourself first.
Mom was a big fan of Louis Rukeyser, Richard Band, and Bob Brinker. She then morphed into a Boglehead before there were Bogleheads…
While a smart man, I don’t think Dad was aware of dollar cost averaging as defined. But he did suggest investing a small amount in individual stocks. I do follow that advice when investing in individual stocks, buy in lots over a period of months and or years in down markets.
My grandmother taught me how to balance a checkbook when I was learning how to add and subtract. We used real checks from an account she had closed. This made it a fun game. No advice that I remember, just practical education.
They also did not pay off their mortgage because interest rates were soaring and the mortgage rate was around 5% (much lower). With the income tax deduction, they thought this was a good deal. They abhored debt, but taught me to factor in other parameters.
My grandparents, immigrants all, lived through the depression, did quite well for themselves, by following the old saw “Take care of the nickels and dimes, and the dollars will take care of themselves”.
My mother was a big advocate of paying off a mortgage as soon as possible, so I would have a roof over my head. She was also counseling me on compounding.
Avoid debt and financial dependence as much as possible.
Unfortunately, many of the lessons I learned fell into the “don’t do this” category. I did learn how illness and mistakes can dramatically derail a financial plan. I actually learned quite a bit about hard work, and living within one’s means from my in-laws. I also learned the value of taking care of your family.
None. I don’t recall a single discussion revolving around money or finances. I think we were ‘middle class’, but I’m not even sure about that.
My mother told me, at the onset of marriage, that it was a good idea to have some money in my own right—
that is in my own name, because “you just never know”. I think at the beginning of a relationship it’s a good idea. Of course it doesn’t apply at this point—my husband and I co-own everything together and we’re sort of joined at the hip.
None, but I learned a great deal from observation. My parents never carried any debt. I learned in reverse as well. My parents never invested, basically lived paycheck to paycheck quite modestly. I saw that didn’t get them very far and lead to a do nothing retirement living on SS alone.
i received no specific advice, nor did I hear them discuss money between themselves. They set an example of frugality, however, that was hard to miss.
Don’t underestimate your financial adversaries. They are as confident in their wisdom as you are in yours.
That even a good income from a profession doesn’t result in wealth. For that you have to invest in stocks.
I don’t remember any money advice from my folks growing up. Now, though, they encourage me to spend on myself and others (they know I’m very frugal). It’s helpful to see them live comfortably on somewhat modest income and assets while spending on what’s important to them – that assures me that it’s OK to not always be super frugal.