I was blessed to have learned the valuable lesson "always pay yourself first" during my younger years. In my parents' eyes, this means setting aside a portion of what I make doing household chores and profits from my neighborhood side hustles for savings and investments before making any other expenditures. Although I didn't grasp the importance of savings and investments when I was little, this simple yet essential lesson has profoundly affected my life and livelihood in the long run. By emphasizing savings, I've established a solid financial foundation and weather difficult times, including the recent economic challenges caused by the pandemic. The applicability of this piece of advice has never been greater than it is right now. Considering all of the unpredictability that exists in the world today, it is necessary to have a reliable investment strategy. Remember that paying yourself first is not just a good concept but a crucial step in achieving your financial objectives.
My father gave us an allowance at the beginning of each week in a jar on the fireplace. As we got older, he started giving us more money with more responsibility. We started with allowance for good grades. That progressed to increasing the allowance for school supplies, school clothes, school field trips and movie theatre tickets. If I wanted something designer, I would save up for it over time. I liked having money in my pocket. I learned I did not need immediate gratification. There were also fees for negative behavior. Each child had a list of things to work on in their mason jar. Each infraction had a fee that would be taken from your initial allowance placed in the mason jar. Arguing with siblings had a fee. Lying had a fee, back talking to parents had a fee, etc. The kids in the neighborhood would come over to see how our money was moving in and out of the jar. I learned what happens when I make good choices and what happens when I make bad ones. I have great credit!
My parents taught me the concept of delaying gratification as I was growing up. They instilled in me the value of waiting to buy the things I desired and conserving money instead of acting on impulse. This lesson has stuck with me all my life and has aided in my ability to make wise financial choices as an adult. Every time I have to make a financial choice, I step back and consider if I actually need it or if it's simply a passing fancy. I've been able to avoid making unnecessary purchases and make better investments for the future by delaying and saving for the things that are really important.
My parents always emphasized the importance of paying bills on time. Back then, I didn't fully understand the impact that this lesson would have on my life. As I got older and began managing my finances, I quickly realized how important it is to stay on top of bills and payments. Paying bills on time keeps you from falling behind and accumulating late fees, which can add up quickly and strain your finances. Not only that, but consistently staying on top of bills helps to build a good credit score, which is essential for things like applying for a loan, renting an apartment, or even getting a job. So, I make it a point always to pay my bills on time and keep a close eye on my finances. It's a simple but powerful money management tip that has helped me avoid debt and build a stable financial foundation.
My Dad always said "Never finance anything besides a home and maybe a car. Always save your money and pay cash". My dear Dad is 92 and doesn't have to worry about paying his bills and he can basically purchase whatever he wants or needs. My husband and I have lived by my Dad's advice. Now we are retired and do not ever have to worry about our finances.
One money management tip that my parents instilled in me during my childhood was to always keep track of my expenses and budget accordingly. They encouraged me to make a list of all my monthly expenses, such as rent, groceries, and bills, and then allocate a certain amount of money towards each category. This tip has had a significant impact on my life as it has helped me stay on top of my finances and avoid overspending. By keeping track of my expenses and sticking to a budget, I've been able to save money for emergencies and even for fun activities like vacations or hobbies. It's a habit that I still practice today and one that I'm grateful my parents taught me.
One money management tip that I was taught during my childhood is to save a portion of my allowance or any money I received as a gift. This habit has helped me to be more financially responsible and develop a healthy relationship with money. It has also allowed me to build up savings for unexpected expenses or future investments.
From an early age, one specific money management tip that stood out to me was 'do not spend before you have earned'. This has been a life-changing lesson for me, as it has allowed to become mindful about my financial decisions over time. As a result, I have often taken the time to think about purchases before spending and have been able to save up for larger expenses. Not only have I seen the benefit of this in my personal finances but in my life overall as it's given the sense of security knowing that I am prepared should any unexpected costs come up.
I was taught never to have credit card debt. This has certainly helped me to avoid consumer debt, as I always pay off my credit card each month. That said, I've expanded my view of "debt" and have opened up new credit cards with large sign-on bonuses and 0% APR for the first year. I used the time to invest more heavily in the market and paid off the credit card once the year was up and interest would be owed. Overall, I still avoid unnecessary debt, but I think there can certainly be moments when credit card debt is not the end of the world and can actually prove beneficial to your financial goals.
While not a tip I was taught, there's a way of money management which I've developed very early in my childhood. I've lived through 2 wars by the time I was 18, and even with my parents' best efforts, there were a lot of things which were off-limits for us as a family. It is very likely that this led to me placing great importance on money management later on in life. When I got my first job, and ever since then, I started measuring every single potential purchase in my hourly or weekly or even monthly pay. I would ask myself if a piece of clothing is really worth 10 hours of my work-time, if that piece of jewelry we traditionally buy when getting engaged is really worth 2 of my monthly salaries, and so on. Evaluating a purchase from this perspective helps me decide if it is truly worth parting with the hard earned money and eliminates impulse buys.
One thing I learned growing up is to have a profound respect for money. I remember every time I went to the mall with my dad, I would always ask for this or that. My dad would say NO literally all the time. But after a few weeks, he would actually buy some of these things for me. He told me that, just because you have money does not always mean you have to spend it. Money is not vanity. You work hard to get it, and as such, you should spend on things that are actually more important. If you cannot respect the value of money and the hustle that it takes to get it, then it will be very hard to attain some level of financial freedom. I have taken this lesson with me to this day. It has helped me avoid wastages, live within my means, and spend only on things that I care about.
One money management tip that I was taught during my childhood was to always live below my means. My parents emphasized the importance of budgeting and only spending money on what was necessary. This lesson has had a significant impact on my life as I've grown older. It has taught me to prioritize my expenses and focus on what is truly important. By living below my means, I've been able to save more money and invest in my future. Aman Kapoor, CEO of preconrealestate, once said, "Living below your means doesn't mean living poorly. It means spending less than you earn and using the difference to create a better future for yourself and your family." This quote perfectly encapsulates the lesson I learned from my parents. Living below my means has allowed me to avoid unnecessary debt and build a strong financial foundation. I Overall, this money management tip has been invaluable in helping me achieve financial stability and security.
My father taught me to save at least 5% of everything I made. I didn’t understand how much this would help me at the time, but I’ve stuck with the rule over the years and the benefits have been immense. By saving a minimum of 5% of all your earnings, you’re able to build up a nice nest egg for emergencies and future needs. Even if you only make a few hundred dollars a month, over time you’ll have a nice chunk of change to work with. Growing your savings rate over time is also important. If you don’t increase the amount you save each month, you won’t ever reach your financial goals. By increasing your savings rate by 1% each year, you’ll find a big difference in 10 years.
I remember growing up as a child, my mom used to give me and my brother a $20 bill every Friday on our way to school. She often made it clear that we could do whatever we wanted with the $20. However, as I was spending my $20 each week my brother somehow managed to keep some of it. After a few months, he bought a skateboard from nowhere. I remember going to my mom and demanding she buy me one too. But she rightfully refused and told me that I had to emulate my big brother and save some of the $20 she gave us each week. She in fact insisted that I try to save at least 30% every Friday. It was hard at first but I was able to develop the habit. Eventually, I managed to save enough money to buy myself some Christmas sneakers. To this day, I still observe the 30% rule when it comes to saving. It has helped me avoid debt while living within my means.
I was taught not to spend money on spend all of my income. I remember my mom telling me her rule of thumb was to always try to save at least 10% of her income. My parents didn't make very much money so we also kept our expenses relatively low. I've taken this a bit to the extreme and save at least 50% of my income. This might be because I learned a high paying skill so my income is high but I didn't change my lifestyle very much since moving away from my parents so I'm used to keeping my expenses low. My ability to keep expenses low and save a large portion of my income has helped me gain financial security which is one of my biggest priorities in life.
My father used to explain to me the idea of money and its value, which is one important financial management lesson my parents taught me. He introduced me to several currency denominations and taught me how to count money. However, he never took me to the bank by myself. Instead, he instructed me to do my own research and learn about banks online and then assigned me tasks. Quickly, I became familiar with how banks operate, including the steps involved in making deposits, withdrawing cash, and using ATMs, as well as how to do these things confidently. This assisted me in gaining independence, self-assurance, and sound money management skills including saving money, paying off debt, and making prudent investments.
When I was young, I learned to 'wait and think about it' when I wanted to buy something. My parents taught me not to buy something on a whim and, instead, do my research before purchasing to ensure it was what I wanted, the right choice for my needs, and just a good decision to make. As a kid, I would only have so much money to spend when I was able to treat myself, so being taught to think about it was an important lesson. It also transferred over to my mature life as well. Rather than just walking into a store and buying something, I was accustomed to seeing things, researching my options, and waiting to ensure I make the best decision for me. This was a valuable lesson I learned early on in life, and I still use it to this day!
One money management tip that I was taught during my childhood is to save before spending. This has helped me become a responsible adult by learning to prioritize my needs and wants. I'm able to save for future investments and unexpected expenses, which has made me more financially secure.
I was taught that just because I like something, doesn’t mean I have to buy it. As a child with my allowance burning a hole in my pocket, that wasn’t what I wanted to hear! But now as an adult when I see something I’m considering purchasing, I ask myself if I really need it or if I am honestly going to use it. Typically, I am just appreciating something for how it looks or what it does, and I don’t need to spend the money on it or create the space in my home for it. Without constantly spending money on small things, I have money for the big things I need and my home stays pretty clutter-free. Win-win!
Marketing & Outreach Manager at ePassportPhoto
Answered 3 years ago
When I was a child, I was taught to delay gratification. This meant that I was encouraged to save my money for bigger items that I wanted, rather than spending it on smaller, immediate purchases. This concept had a significant impact on my life, as it taught me the value of patience and planning ahead. For example, when I was a teenager, I saved up for months to buy a new guitar that I had been eyeing. It was difficult to resist the temptation to spend my money on other things in the meantime, but the feeling of accomplishment when I finally made the purchase was well worth it. This lesson has stayed with me , and has helped me to prioritize my spending and make thoughtful financial decisions.