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A lot of what I learned throughout my finance journey has been influenced by how I saw my dad handle his finances. He hardly spoke about money unless it was stressing him out. A good thing he did was showing me how a checkbook worked and balancing my checkbook. (everything is pretty much digital now but that still comes in Handy).Now, I have a 3 year old son and I try to teach him about the different denominations and will aim to teach him positive habits in the future.What have your parents taught you (good or bad) about money and finance? If you have kids, do you teach your kids any money advice?

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When my nephew sees a toy he wants, he says "We need lots of dollars to buy that.  Uncle Glitch, you need to go to Rite ... (more)

Glitch99 (Aug. 25, 2016 @ 5:10p) |

That's not exactly true.

If an employee is exempt, they aren't REQUIRED to be paid for additional hours worked above 40/w... (more)

arch8ngel (Aug. 25, 2016 @ 5:10p) |

i'm concerned you're feeding him the wrappers and blank cards

rufflesinc (Aug. 25, 2016 @ 5:22p) |

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compounding, time=money. leverage.

Get a job. Spend less than you make. Save and prepare for your future. 

Most of what I learned from my boomer parents has been what not to do by their generation's poor examples.

My dad is pennywise pound foolish and cheap to a fault... doesn't understand the value of his time or health and will spend an entire day trying to fix something he could have hired someone to do for 50 bucks. Hypocritically, despite this, he also continues to waste $ and purchase and trade in new cars for no reason.

My mom lives beyond her means, is prematurely taking 401k distributions to fuel her habit, and has no plan put together on how to make it last.

No kids but long term GF who came from a house with even worse financial saavy and discipline so I've been able to train and teach her from ground up on how the market works, time value of money, opportunity cost, tax advantaged accounts, student loan repayment strategies, living below your means, etc, and luckily shes been on board.

FWF, bogleheads, and a couple ECON and FIN classes in school have been more helpful in my life than anything they taught.

My parents didn't need to teach me anything.. I saw it first hand.
As an immigrant family, I saw them get a combined $15/hour in late '99 and 2000 but still managing to rent an apartment for 4 of us and pay for my sister's freshmen year of college (FAFSA helped of course)

They taught me how to be frugal but I am teaching them how they can stay wealthy. Bad frugal habbits and actions can cost you dearly. I try to help them avoid that path.

My dad hit forty and realized he didn't have a penny saved for retirement. Then he buckled down, maxed out his 401k, and arrived at 63.5 with a decent but not stellar retirement fund. I learned to start early, but I also learned to recognize your mistake and proceed forward with a good plan.

Mostly it was learning from example, but there were a few specific things they did for me.
They generally wouldn't buy me toys except for birthday and xmas.
I had a weekly allowance that I needed to do chores to get. No partial credit on this. If I didn't do all that I was supposed to, I got nothing.
I could use my allowance to buy whatever I wanted but, I couldn't buy anything else until I deposited an equal amount in my savings account. Everything I deposited they matched 50%.
Once I had external income, my dad made me do my taxes by hand.
In college, they helped me with some basic expenses, but I had to account for every penny of both what they helped me with, and what I spent of my own money (at least by category).

How bankruptcy works.

Frugalness leads to big savings.

jd2010 said:   Most of what I learned from my boomer parents has been what not to do by their generation's poor examples.

My dad is pennywise pound foolish and cheap to a fault... doesn't understand the value of his time or health and will spend an entire day trying to fix something he could have hired someone to do for 50 bucks. Hypocritically, despite this, he also continues to waste $ and purchase and trade in new cars for no reason.

My mom lives beyond her means, is prematurely taking 401k distributions to fuel her habit, and has no plan put together on how to make it last.

No kids but long term GF who came from a house with even worse financial saavy and discipline so I've been able to train and teach her from ground up on how the market works, time value of money, opportunity cost, tax advantaged accounts, student loan repayment strategies, living below your means, etc, and luckily shes been on board.

FWF, bogleheads, and a couple ECON and FIN classes in school have been more helpful in my life than anything they taught.

  Same here, but my parents are a little better off than yours. Not because they are good with money, they just worked a little harder and got a little luckier. (I guess, I don't know your parents of course)

My dad did really well for himself working in upper management in a family business. He made himself invaluable to them so much so that when he finally left to work for himself, they kept him on as a consultant and he spends 6 weeks a year working for them making what I make in a year at my job. But he is horrible with all the money he made. He has very little retirement savings. His current job (the business he co-owns) pays him a salary, but I don't think it makes much of a profit that he can collect at the end of the year. He says he's building a lot of equity and the business will be worth a bunch when he wants to retire and sell, but it's not really a liquid investment. Even with essentially two salaries, he and his wife spend nearly all of it. He had very little liquid savings. Just a few pieces of real estate. Almost no equity, but they are cash flow positive. I have no idea where all his money goes.

My mom, when my parents divorced, had to work a lot to keep up her lifestyle. She'd be miserable right now if she didn't meet and marry a very successful engineer.

I saw how much they made and how much they spent and how there was little (or negative) money left over. I decided I didn't want that to happen to me and my family. My wife and I just had our first baby and with only a few minor tweaks to our lifestyle (no European vacations, less eating out), she'll be able to stay home with our son. So yeah, I've learned more from seeing them and avoiding the overspending and learning from blogs and sites like this.

Plastics

Like KayK, as an immigrant my parents taught me and my siblings to stay put in a small apartment as long as we could so save on the rent and utils.  Of course we didn't have much privacy or room to spread out but looking back it was one of the best advice they gave us.  We lived together until we saved enough to purchase a three flat for cash (about 12 years after we came to U.S.) and eventually each us owning multiple properties.  Another thing they taught us to invest in ourselves by finishing college.   I teach same thing to my kids...whenever I across news articles about the importance of college degrees, I make my kids read them. 
 

My parent taught already how to multiple and divide before I was in first grade. The education system in this country is not the same as other countries that I learned later as I got older. I already had the multiplication table in my head before other students here are taught how to carry the 1 over to add a two digit number. Basic Math is important to teach as a parent, as well as money. My point is the school system should teach student a young age about the importance of money, but that is not going to fly well with big corporations and politicians.

DeFiantROA said:   My parent taught already how to multiple and divide before I was in first grade. The education system in this country is not the same as other countries that I learned later as I got older.
  

vnuts21 said:   Plastics
  Plastics = financial gasoline (if not carefully watched)

DeFiantROA said:   
vnuts21 said:   Plastics
  Plastics = financial gasoline (if not carefully watched)


♫ ♬  
Coo coo ca-choo
♫ ♬

For kids, don't ask or get something unless you really need it. That makes them choose what to ask for and what not to ask for and makes them responsible as well. Also, telling them 'no' is not always bad!

My mother taught me how to save money and my father taught me how to utterly waste it. So now I have split financial personalities.

earn money for 25 years later lose everything in a year or two ask your kids for money if gov doesn't pay you .

ps: I learned not to repeat this ,  also biggest mistake people do is  try to outsmart the stock market / trade individual stocks / options/futures .

Couple of things in no particular order:

  1. Price Tags come cheap. Just because something is on sale doesn't mean its worth what they're charging.  Similarly, something is only worth what the market will bear.  A collectible is only worth an exorbitant amount if there is someone willing to pay that amount.
  2. The best way to save money is via direct deposits right out of your paycheck into a high-yield savings. If you never see the money in your checking account, you're less likely to spend it.
  3. Compounding.  Enough said.
  4. Other than your home, your transportation will likely be the biggest single expense in your lifetime.  Learn how to do mid-level auto and home repair and you'll save yourself money.  Obviously this isn't for everyone; I was lucky that my father learned from his father-in-law so he was able to impart that knowledge on me.  On a related note: drive your cars into the ground; you don't need a new car as soon as you've paid off your current one.
  5. Stay Healthy.  Going to the Doctor is expensive.  Pharmaceuticals are expensive.  Take care of yourself.
  6. If I wanted something, there were no free rides.  When I wanted a mountain bike, I saved for it.  The thought of asking them to pay for it didn't cross my mind.  When I turned 16, my parents made it clear that if I wanted to drive a car, it wasn't going to be one of theirs.  They loaned me $900 to buy a reliable beater under the condition that I pay it back by the end of the summer.
  7. Going out to eat is a privilege; restaurants make money on drinks so ordering water is the clear choice.
  8. Never turn down overtime if it's offered.  Time=Money.

I watched my parents work 2 job each when they immigrated here and make sure they put their kids first, had a roof, food, and most importantly an education.

When I could not go to the movies with all my friends they treated me like an adult and explained why it was not feasible. Even if it was feasible they would explain what I was giving up and or how it was impacting the rest of the family and let me make the decision. I didn't always make the right decisions but what I learned from the wrong decisions was extremely valuable.

At end of the day the lesson was live within your means. Don't purchase anything (except very large purchases like house, car) that you can't pay cash for.

ststutr said:   

  1. Never turn down overtime if it's offered.  Time=Money.


  what does that mean

Buy used cars
Buy rental property
Pay yourself first (money into savings/investments before you ever see it)
Buy a lot less house than you can "afford"

They've lived a very nice life, but always well under their means....and have retired with a very nice nest egg. Now they travel wherever they choose all the time.

Honestly, they have taught me a great deal about money. But I disagree with most all of it.

My best example is the constant "you can't take it with you" I hear to this day as we reach for early retirement. You know what mom? You are right, but I also don't plan on working until 85 like you will have to.

Genius069 said:   I watched my parents work 2 job each when they immigrated here and make sure they put their kids first, had a roof, food, and most importantly an education.

At end of the day the lesson was live within your means. Don't purchase anything (except very large purchases like house, car) that you can't pay cash for.

Hmmm, there seems to be a common theme running through this thread...

Both of my parents were also immigrants, and were very careful with money. My siblings and I learned how to keep a detailed financial ledger from an early age. Our family had a middle-class income, but lived more of a lower-class lifestyle. We did live in a decent neighborhood, though in one of the smallest and least expensive houses in that neighborhood. We always had a roof over our heads, food on the table, and clothes to wear (even if some of them had been previously worn by my older brothers). When my brothers and I graduated from high school it wasn't a question of if we were going to college - only where we were going to college.

We were taught to live below our means, and most importantly the difference between wanting something and needing it. My brothers and I knew well in advance that if we wanted a car we would need to save our money and pay for it ourselves with cash. So, we all had paper routes when we were younger and got part-time jobs when we turned 16. By the time I was 17 1/2 I was able to afford a modest used car. No one in my family has ever taken out a loan for anything other than real estate.

By the way, welcome to FWF Deitra33... nice first post!
 

They taught me discipline which taught me how to make money.

Rubl said:   They taught me discipline which taught me how to make money.
  so how do you make money?

Money does not grow on Trees.

They really didn't. Over time, I concluded that my Dad's thinking was very antiquated. Just because he had lost money in some fund that he had invested in seeing the ad in the newspaper, he avoided stocks for most of his life. Then in his retirement, he started dabbling in stocks with the single objective of reducing his cost basis - i.e. if the stock tanked, he would take a bigger and a bigger position without really understanding the fundamentals of the stock. I haven't asked him how his stock strategy is working.

But I have a very analytical mind - so I examine things and make decisions. For example, first I was very excited when I learned the principle that making early mortgage payments saves you so much in interest later on. But as I thought through the situation, my belief is that paying mortgage early is really a very-very stupid decision - there are a lot better ways to deploy the money.

In terms of passing the stuff to next generation, it is hard - they don't have too much time for this stuff. Built my son's credit history by adding him to my credit card when he was going to high school. This helped him to get his first car on his credit and job letter! Guided him to put his money in Roth when he earned during his internship. Got him thinking about maximizing his 401K and using Ally for free cash. He is beginning to see the value of credit card offers and every time his company sends him abroad, I get him to apply for a card to get a reward. But the biggest piece he is missing is taking interest in investing his money. But works out fine for 401K etc since we selected some good index funds and investment in those funds is automatic.

Shopping wise, I helped with Amex Offers/sales/rebates etc. when he first built his computer - so that really taught him that things can be bought much cheaper. So if he is buying something big, he definitely looks out for a good deal.

> Buy used cars

I didn't teach him that and I don't follow that. Apart from my 1st two cars in my life as poor graduate student, all of them have been new. Personally, you enjoy them more and if you keep them for 10ish+ years, they don't cost a helluva lot more than a used car - particularly when you factor in 10 years of almost trouble free ownership. 

> Pay yourself first (money into savings/investments before you ever see it)

It is a function of your salary. If you earn way beyond your housing/food, the savings automatically happen in 401K etc. and left-over. Key thing is to live within your means and I think if your child sees that you don't spend frivolously, he automatically learns too. Also, if you keep a balance where you enjoy things, it is unlikely that he will flip into 180 degrees opposite of you.

rufflesinc said:   
ststutr said:   

  1. Never turn down overtime if it's offered.  Time=Money.


  what does that mean

  If you work at a job that offers you overtime, don't turn down the OT because you have some preconceived notion that a job is capped at 40hrs a week.

My Mom worked as a programmer in a factory and she said that the factory workers would get bent out of shape when they were asked to come in on Fridays (normally an off-day; they worked 4x10hrs).  They were getting time and a half (double time on sundays; triple time on Sunday Holidays) and even that wasn't a big enough incentive to get volunteers.

I have friends who have worked salaried gigs and would be offered OT and they would turn it down because they didn't want to work more than 40hrs a week.  Their excuse was "it's only straight time.  it's not worth it."

When you're working a salaried job, you're essentially on a fixed income; the chance to add a little icing on top is too good to pass up especially if you'd just be sitting on the couch otherwise  

ststutr said:   
 
I have friends who have worked salaried gigs and would be offered OT and they would turn it down because they didn't want to work more than 40hrs a week.  Their excuse was "it's only straight time.  it's not worth it."

When you're working a salaried job, you're essentially on a fixed income; the chance to add a little icing on top is too good to pass up especially if you'd just be sitting on the couch otherwise  

  I've never heard of a salaried job getting paid for working more than 40hrs

rufflesinc said:   
ststutr said:   
 
I have friends who have worked salaried gigs and would be offered OT and they would turn it down because they didn't want to work more than 40hrs a week.  Their excuse was "it's only straight time.  it's not worth it."

When you're working a salaried job, you're essentially on a fixed income; the chance to add a little icing on top is too good to pass up especially if you'd just be sitting on the couch otherwise  

  I've never heard of a salaried job getting paid for working more than 40hrs

  Some companies pay exempt employees extra for working more than 40 hours per week. Since the employer isn't obligated to pay them more than their salary, they aren't obligated to pay time-and-a-half pay.

1. Family first. OK. Doesn't seem like it's about money, but it often is.
2. Life is not fair. Nobody owes you anything.
3. You're 14 and legal to work? Get a job. Summer camp/summer vacation is for kids.
4. Do what you love and be good at what you do.
5. Always keep learning. Education is its own reward.
6. Pick some causes that you can get behind and volunteer and give generously.
7. Don't be an elitist.
8. The U.S. is the greatest country on Earth. Your grandparents came to this country with nothing and built a life for themselves and their families. Your uncles & father volunteered for the military because they loved their country. You are lucky to be born in a place that presents endless opportunities.

Some parents teach their kid to be frugal, but not how to earn. After they grow up, they have no money to save. lol.

My father taught me a lot about everything. I went with him each month to 'do the banking' and to 'do the shopping' -- learning how to save and how to spend. He said a mortgage was the only good debt and that it was easier to manage your outgo than income. We shopped at the Pease Air Force Base commissary. Before we left, he made a list using the grocery flyers and clipped coupons. He would wave the pile of coupons at me -- "You don't pay taxes on the money you save."

He always talked about cycles and bubbles. He discouraged me from buying a house in the 80s because the housing market was in a bubble. He was right -- saved me a ton of money.

He taught me about tax advantaged savings and to buy everything on sale.

The most important thing he taught me was to talk about money with my kids. My oldest is a year out of college. He has no debt and a new car, a roth ira, a 401k, and stock in his company.

Fatwallet actually paved the way for most of my finance knowledge. I've been here for 13 years and I don't think I would have the same mindset if it weren't for FW. 

WWFWD?

My dad sat down with me to create my first budget. It was a painful, eye-opening experience, but he made me write down everything from car insurance to how much my shampoo cost. It saved me from trouble many times, that budget. He also taught me to work hard and save lots, but it was my mom who taught me to give generously, as well. My parents are pretty terrific.

I have been teaching my kids the same thing.

They had me open a checking account and get my first credit card at an early age - along with the adage that you always pay your credit card bill on time.

Skipping 70 Messages...
Glitch99 said:   
SpeedingLunatic said:   My mother showed me how she was rolling debt between 0% cards to pay it off without interest. I took what I learned and ended up in the (very lucrative) butter industry.
  When my nephew sees a toy he wants, he says "We need lots of dollars to buy that.  Uncle Glitch, you need to go to Rite Aid  again to get more ice cream, so you can get enough dollars to buy this for me." 

True story.  Not sure if that's a good thing for a 4 year old to understand or not. 

 

  i'm concerned you're feeding him the wrappers and blank cards



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