Money Talk

“Don’t hold your bucket where your hand can’t reach”.

This is a saying that my late Grandmother passed on to her children and one that my Dad passed on to me.

What does it really mean? To me it means don’t purchase things you can’t afford.

Sounds like an easy concept but can be hard to follow if someone doesn’t take the time to teach you about the value of money.

I was never given an allowance as a child. Anytime I needed or wanted something, I always asked my parents for money. Sometimes they would fork it over and sometimes they didn’t.

I got my first job when I was 16.  What a relief that was. I spent my money how I wanted without being asked any questions.

Once I started College, I signed up for 2-3 credit cards. When my Mom found out, the only thing she told me was to make sure I had enough money to pay off the balance at the end of the month.

I promised I would but soon feel into the trap of maxing out all of my credit cards because I viewed it as “free money”.

I spent all of my 20’s and early 30’s in debt. I believe this could have been avoided if my parents had taken the time to teach me about money. 

This is something that every parent should teach their child. It’s definitely something I plan on doing.

Starting a conversation about money doesn’t have to be hard. Take your child on a trip to the bank. Open up a savings account for them. Take them to the store to help purchase groceries. Play a game of Monopoly. Give your child an allowance.

Most importantly, parents need to teach children the difference between needs vs. wants.

When a child receives money – whether it’s from an allowance or receiving birthday money - I believe it should be divided into three categories. If you attend church like me, 10% should automatically be set aside for tithes, another 10% set aside for savings and the remainder set aside for spending. 

Even if parents teach their children about money at an early age, it’s no guarantee they will continue with these habits but it’s definitely worth the try.

While I don’t blame my parents for my financial mistakes, I do believe that if they had taken the time to teach me about money when I was younger, I would have been better off financially today.

Did your parents talk to you about money? If so, what lessons did you take from those conversations?

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When you get a chance, please visit my friend Tyrone’s blog. His posts are insightful and very thought provoking. See his blog here.

Thanks for reading and keep smiling :)