Teaching how to save money and building credit are some of the most important money lessons from my parents
Kids need to be taught the basic money lessons early through watching their parents and through their own practice. As they get older, two of the most important money lessons will be how to save money and building credit.
Today’s essay is by Brianna Brewer, a student at San Jose State University. Her story shows us that teaching kids important money lessons like saving and building credit is an ongoing task.
Check out Brianna’s story and please share on social media. The most-shared essay on how parents can teach their kids about money will win our $500 personal finance scholarship, announced August 31st!
Looking for more ideas on teaching you kids about money? Check out this huge roundup post of 36 expert ideas on teaching kids money saving tips.
Two More Money Lessons from My Parents
Growing up, my parents instilled a lot of life lessons on the importance of managing money, as well as what could happen as a result of spending money on items that I didn’t need.
Now that I am eighteen years old, and on my way to San Jose State University, my parents have been explaining the two most important factors that go along with earning money in America. How to save and make more money. To me, thriftiness is a virtue. Sometimes for me, it’s hard to save my money, because there is so much stuff that I want to buy, the key word being ‘want’.
It’s almost impossible to save money without a clear goal in mind. So many people save for the sake of saving and then end up losing their motivation. Check out this post on how to start saving goals to keep you saving.
In January 2016, I was hired as a student teacher at Eye Level. Eye Level is an after school learning center in North Natomas of Sacramento, California. I earn a lot more money at Eye Level, than any of my other jobs, so internally, I struggled with the dilemma of spending said money or saving it for a rainy day.
In the past, I was what one might call a shopaholic. My spending habits were egregious at best. It wasn’t a compulsion so much as the why not factor that caused me to spend the way I did. I don’t need that new pair of vans but why not. I had the money so I’d spend it.
It was even worse with food. Food is the love of my life. All this caused my financial downfall. And why wouldn’t it? I was spending money that I really didn’t have and as we all know that can never end well. Eventually, I was able to gain control and started taking my parents advice but not before severely crippling my bank account.
Another life lesson my parents taught me is about building credit and how building a decent credit score is beneficial for me as a young adult. Even though, I don’t have a credit card right now, I know that when I receive one, I will be one step ahead of the young adults out there, whose parents did not teach them about building credit.
I am fortunate enough to have parents who took the time to talk to me about finances. I’m not completely stable, but thanks to their help I’m getting there.
I want to thank Brianna for her essay about important money lessons like saving and building credit. Be sure to support Brianna by sharing the article through social media and check in August for the winner of the personal finance scholarship.
About the Author
Joseph Hogue is a financial expert and investment analyst. After serving in the Marine Corps, he started his career investing in real estate before becoming an investment analyst for some of the largest private investors. He's appeared on Bloomberg and on CNBC as an investment expert and has published ten books in personal finance. Now he helps investors reach their financial goals and invest in the stock market with some of the same advice he used when working for the rich.