We learn so much from our parents, and their guidance and tuition helps us make our way through the big wide world. Honestly, I still call on my parents for help and advice, but there’s one particular department that I wish my parents would have discussed more openly with me when I was growing up. This is, of course, the topic of money!
I know that in many households, money isn’t a conversational topic that is easy to start. For whatever reason, parents may be hesitant to discuss finances with their children. I know that parents do the best they can, however, I would have liked to have been a bit more prepared to take on the big wide world when the time came for me to take charge of my own finances.
Here are three things that I wish my parents had taught me about money – can you relate?
Start saving your money as soon as you can.
When you’re young, it feels like you have all the time in the world to begin saving. Realistically, however, it really won’t be long until you find yourself wanting to settle down, maybe have children, get married, or even buy a house.
These things are all expensive, and having a savings account that you’ve consistently deposited money into over the years will help relieve a huge amount of financial anxiety when it comes to making these big, life changing plans.
I’ve noticed that it gets harder to save as you grow up – not only do you plan these big life changing events – but your bills also increase. You will find that you have a mortgage to pay, fuel and car tax to pay for and even more expensive food bills as your family expands.
What I really wish that my parents had taught me, is that regularly depositing money into a savings account when you’re young is easier and it sets you up with good habits. Not only that, but having these savings and a mindset that prioritises saving money can help you to reach your financial goals faster.
Know what your budget is and stick to it.
Do you remember your parents ever discussing budgets with you as a child or teenager? Budgeting is an art form, and sometimes it can take several years to get it right. It wpuld be my advice to start learning how to budget early, even if it’s while you’re still living at home and you’re getting to grips with how to best handle your part-time job income.
Having a budget is vital if you want to stay out of debt, pay off debt, remain financially secure and reach your financial goals. Tracking your incomings and outgoings and assessing the amount of money that can be spent in different financial areas is extremely useful as it will help you when it comes to purchasing groceries, paying car taxes, and topping up your savings pot.
There are many budgeting tricks and tips around and the resources are definitely out there if you’re keen to learn how to successfully budget your income. I definitely wish that budgeting was something my parents had taught me about money from an earlier age though, as it would have saved me a lot of hassle and financial worry.
Setting yourself financial goals can set you free.
Having a good grip on your finances is difficult, there’s no sugar-coating it. Sometimes, we all get into financial hardship and it can make our lives so stressful and scary. Setting financial goals is something that I wish my parents had talked to me about when I was younger, as it seems inevitable in this day and age that you will need to have financial targets that you will need to aim for if you wish to achieve certain things.
For instance, you may need to set a financial go of paying off your credit card debt within 6 months, or perhaps you are going to set a financial goal that has you saving up enough money to pay for your summer holiday next year. Financial goals should be there to help you succeed in the future, as well as to help you out when you’re experiencing times of financial hardship.
Knowing how to budget, along with dedication and discipline when it comes to saving, will help you to create financial goals that are specific and time-based, but most importantly, achievable.