What’s the one thing about money you wish your parents had taught you?
This question generated tons of feedback and financial wisdom shared by listeners and RichLifers everywhere. Our relationship with money is perhaps one of the most important relationships we can ever develop, mainly because it affects so many other areas of our life.
The money mistakes that we make can become the money lessons we pass down to those we care about.
What money mistakes have you learned from? And how were money lessons passed down to you? What follows is a treasury of sound, simple money advice handed down through generations and shared by individuals like you.
· On Earning
“If you want it, go and earn it. Work for it. Money is not an entitlement, but compensation for services provided.” – Bill
“You can’t take things for free. Sitting on your tail in the end won’t do you any good. You’ve got to get out there and earn it.” – Jerry
“My dad taught me something that has served me as a business owner: your income must always exceed your outcome.” – Kelly
“You have to plan for what you want and need, and then prioritize. That way, you can get what you want when you need it, and not need what you want when you get it.” – Doris
TAKE AWAY: One of the greatest gifts you can pass down to your kids is a strong work ethic.
· On Buying
“Do not buy your children anything when they are with you. Let them think about it. This will break the cycle of immediate expectations.” – Joy
“Credit is not more available money. It is a loan with a lot of interest.”– Jessica
“Our parents taught us early about budgeting. We got an allowance when school was out, and we learned to pay for what we wanted by using our own money. We also had our own checking account, and when we got older we were given a credit card. We learned how to use these tools responsibly.”– Mellissa
TAKE AWAY: Just because you want it now doesn’t mean you should get it now if you can’t afford it.
· On Money Beliefs
“I wish I had learned that money is a means to an end, and not the end all by itself. Money does not equal happiness. It is a tool used to serve man, not the other way around.” – Rose
“At the age of 12 I worked at my grandparent’s fruit and vegetable stand. This was before the time of computers and calculators, and I was in charge of the cash register, and of weighing the produce and doing the math. It was a big responsibility to calculate what was owed and give the customers the correct amount of change. At the end of each day when I balanced the cash drawer, my grandparents had a rule: If it was short, I had to pay the difference from my wages. If I was over, I had to pay TWICE that amount out of my wages. Why? Because through my error, I had caused someone else to lose some of their hard earned money. My grandparents did this to teach me respect for my money and for other people’s money, too. On the days that my register came out exact, I got a root beer float.” – Beverly“We’ve been looking at old money beliefs – ‘money doesn’t grow on trees’, ‘money is the root of all evil’ – and talking about them so we can break the cycle and can get clear about what money really is.”
TAKE AWAY: Money by itself is neither good nor bad. Money by itself is neutral. It is what you do with it that makes the difference.
· On Giving
“My dad taught us to always give away as much we can because it always comes back to you. The community you create will then be there for you.” – Carol
TAKE AWAY: Experience the blessing of giving instead of the fear of losing. Nothing we own is ours to keep. Nothing we give away can be taken.
Thanks to all of you who wrote and called in with your advice. These lessons will continue to not only serve you, but all our readers as well. Here’s to your RichLife!
What is the one thing you wish your parents had taught you? What valuable money lesson have you passed on to your kids? It’s not too late to send us your story. We’d love to hear from you! Visit us at www.richlifeadvisors.com and click on the Ask Beau button to share your story today!