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Personal Finance Lessons We Learned From Our Parents
Learning how to finance money and manage a healthy relationship with a budget is often an acquired skill that takes time to learn. For most people, learning how to invest and save for retirement can be a challenge and a difficult world to explore. Although finances may take time to understand, there are a few basic personal finance lessons that we learned from our parents that are just as relevant in adulthood.
Always Save for the Future
Whether you saved money from the tooth fairy or from birthday money you got as a child, you likely heard your parents say that you might want to save the money for the future. Whether saving for a new bike or allowing it to grow interest in an account, the lesson was a valuable one that some adults still struggle with.
Only Buy What You Can Afford
As a kid, it was often difficult to hear the word no when you wanted to borrow money from a parent. Parents often teach children to only buy what they can afford and that they must save for a high-ticket item that they want to purchase. This lesson proves to be invaluable in the real world where a large part of the population struggles with debt. According to Paddon & Yorke Inc, which offers services with consumer proposals in Toronto, this lesson can prevent getting into bankruptcy as an adult.
Don’t Lend Money
It can be tempting to have a soft heart toward a family or friend who wants to borrow money, but the act can lead to a strained relationship. Although it may seem difficult to say no to someone else in need, the money will likely not be paid back and can lead to a broken friendship.
Set Specific Goals
To achieve financial success, it’s important to set specific monetary goals that are realistic to a personal budget. For kids, this can include saving for a future car or earning a certain amount during summer vacation. Setting goals should carry over as an adult and even continue into retirement for a realistic way of managing your money and preparing for the future.
Although it may seem innate for children to spend money the minute it comes within reach, learning important financial lessons can lead to wealth and prosperity. By taking the basic lessons we learned from our parents, it can make it easier to handle money as an adult without getting into debt or living paycheck to paycheck.
