Family Financial Advice
We all have advice about money from our parents and family members. What tips do your family live by?
- Other than a mortgage and (possibly) car loans, stay out of debt. The debtor is slave to the lender. Save up and pay for what you want. I really wish there was a way to give everyone in the country indoctrination in my Mom's loathing of debt and belief in saving for things first....loads of people would be in better shape!
- Part of our homeschool curriculum includes life skills, so one of the things we talk about is how to read the tags at the supermarket so they can figure out what the better deal would be. One piece of advice that has passed on from my parents to my kids is "just because you have the money doesn't mean you have to spend it."
- Save, save, save! I earned an allowance mowing the yard not with the thought of what I'd buy with the money, but when would I have enough to take to the bank. Today I always divert money into savings and an IRA when I get paid. When I buy something for myself, it's a well thought-out decision. I'm going to have to take care of myself when I'm older, so I'm making sure now that I'll be able to do that when the time comes. I proclaim my tightwad status proudly.
- Financial tips I learned from my parents...... 1. Always keep a separate "emergency" account for the unexpected expenses, and always build it back after it is used. 2. Buy with your own money, not credit (when possible). If there is reason or need for credit, find one with the lowest possible interest and try to pay it off every month 3. What to do with extra money?? Always be generous when you are able! Give to those organizations and groups that are important to you and/or hold a special place in your heart.
- About stocks, "you only lose if you actually sell it". The price may decline but if you hold onto it, it may recover, even if it takes years and years. I learned this playing a board game we had about stock markets kinda like monopoly. I've never seen it elsewhere or met anyone who played it. Sometimes you'd pick a card and it would show a line graph: up, down, zigzag up or down, 'V' shape, 'W', 'M', etc. Anyway, when it went down sometimes I'd panic and sell. My dad always held til later.
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