Things I Wish My Parents Taught Me About Money

Things I Wish My Parents Taught Me about Money

Back in the day when I was growing up, my parents taught me all of those little things that any young lady should know: How to sew a button, clean a house, how to cook, and so on. I thought they had covered everything, but they left out the one of greatest importance – money.
Personal finance can sometimes seem frustrating and complicated, but it doesn’t have to be; knowledge of some basic principles will make your life much, much easier.

Spend Less than You Earn. This may seem like a bit of common sense to many, but it really is an issue when it comes to trying to save money.

Pay Yourself First. Most don’t follow a “budget” for this simple reason: They don’t know how to. But even if you don’t, the act of saving a percentage of your pay each month will make a significant difference.

Saving Money is a Positive Habit, not a Negative Obligation. Parents who save money have children who save money, as long as the parents make a positive impression when it comes to the savings part.

Credit & Debt. Don’t try to keep up with the Joneses. (I watched my parents do that) Pay off credit cards before other debts, credit scores can affect more than interest rates. Keep your credit card balances (if you have them) below half of the credit limit and always pay credit card bills on time. Not including mortgage debt, there is close to $80 billion in credit card debt in Canada and $793 billion in the U.S. (TIP: Use cash!)

So it’s obvious right? If you’re more in control and aware of your spending and saving habits you’ll be okay. Well, that’s not the whole story. In order to do that, you need a source of income. It’s easier to spend money than it is to save it and it is simpler to live with what you have than to try and plan for the future.

That’s why everything has to start with you. You need to develop a plan that will support your goals, values, dreams and personality.

If you’re going to be successful, it won’t be because everybody thinks you are it will be because you have set your own goals and taken real, practical steps to make them happen. You will not be doing anything particularly amazing other than you’ll know who you are, what you want and how much you need to achieve it.

Don’t let money rule your life and don’t put your life on hold waiting for money. It’s a tool you can have work for you, so that you can live the way you want. The objective is to create peace of mind and independence because all of your financial decisions and strategies reflect your own unique lifestyle desires. This is financial freedom – freedom to live your life the way you want to live it.