What money advice did you get when growing up?

magnolia65

I grew up with a single parent family. My mother was always hard up and getting in a mess with money to the point that my sister who was a bossy boots anyway at 15 would take over the bills to help her budget. I was never allowed to know fully what was going on. She would get into debt for xmas most years although that was just for food and the odd pressie. I recall many a birthday as a kid her telling me she couldn't afford a present for me and would get me one the following month, although the following month it would be another siblings birthday or she'd go out and buy herself something and I would still be missed out. So yes times were tough and I wasn't shown a great example of how to handle money.

My 2 kids are teens and I am determined to show them a better way. We went to the bank a year ago and set up an account to pay in on the 1st of each month an allowance (40.00), out of that money they have to save 20% (8.00) every month and that comes out automatically on the 2nd. The 32 they have left for the month is to buy clothes or use for treats such as sweets or cinema etc. Any money they get for birthday or christmas has to be paid straight into their savings and when they want or need something large they have to ask us and we say yay or neigh to whether we think it is a worthy buy

Been doing this for just over the year now and it seems to have worked well. They have already started thinking about this months allowance being used for xmas and haven't asked us for any help.

Son saved up and bought his own TV and freeview for his room in the summer and was chuffed he did it by himself.

PS...they don't just get this allowance for nothing either ....the deal is they have jobs in the house to do for it...It's lovely not having to do the tea dishes anymore

CFC

I never knew anything about my parent's finances. Till the day they died, I never knew how much my parents earned. I knew my father had an Access card which he never used, it lived in the drawer and he used to complain that they'd send him a new one without asking.

I did know that my parents didn't see eye to eye about money all the time, and that my father thought my mother could be a bit 'spendy'. Mum used to complain that he wouldn't have a joint bank account with her and he never gave in on that one.

I got a bit of pocket money on occasion, if lucky, there was a roof over the head and a car in the drive, and I had to ask if I wanted to take anything from the fridge or cupboard. I certainly wasn't indulged - pocket money if it arrived, was on the meagre side, but mum would buy me a magazine a week and pay for it. If I wanted spending money I had to save out of my Xmas and bday relative pressie money.

I'm starting to think it was a different world.

bugbabe

my mum died when i was 11 and i was put in a childrens home i learnt nothing about money except on spends day run to the corner shop and buy sweets ,as am getting older am learning how to control my money ive also learnt theres only you that can sort yourself out took a while though, but am sorting out my buisness debts :rolleyes:

LookingAhead

Slightly off topic but had to mention this.

Yesterday I said to someone (who works in finance) "So what advice would you give then for debt busting?", expecting maybe some advice about the industry/some perspective or whatever.

He said "Don't spend more than you earn or marry a millionaire!"

Right-o then. Shame I didn't meet him 17 years ago eh? :rotfl:

Molanole

Interesting thread....

I got very little financial education when I was younger. Parents divorced when I was very young. Mum always only spent what she had and we lived each day from hand to mouth - didn't even have a credit card until about five years ago - with a £400 limit, bless. Dad, always got a grand plan, a new money making scheme. Always moving things from one credit card to another (I think he must have about eight) and a mahousive mortgage(s).

I went to uni, racked up debts cos that's what I thought everyone did. Determined not to let my sister have the same fate though so I sat down with her (given that she's had the same financial education as me) and went through Martin's budgeting spreadsheet. She loves this site now so hopefully she'll do a bit better than I did!

fay144

From the age of 9, I was given a weekly allowance instead of pocket money. This was about £6, and included £1 per day school dinner money and money for brownies and swimming club. I found this quite exciting, as it meant I could keep my change from school dinners and use it to buy something else, and made me think about budgeting from an early age.

A few years later, I got more money, and it had to cover bus fares to visit friends in the next village, and some of my clothes.

I remember when I was about 10 learning a valuable lesson about borrowing when my mum "loaned" me the money to buy a new hamster cage, and I was conviced I could save enough each week to make payments. My mum made me up a repayment book and everything - no interest charges though ;-) I remember being really worried when I realised that I'd spent too much on school dinners to afford it. She, obviously, totally forgot to take my payments after the first few weeks, but I definately learned to be realistic when setting a budget, rather than optimistic.

As a result, all my debt is student debt, and I'm always very aware of how much money I have, and how much I can afford to spend.

My parents themselves were on quite a low income, and normally worked at least 2 jobs each. I remember my mum working night shifts in a supermarket, getting 2 hours sleep, then going to her day job several days a week at one point. Later, she worked 7 days a week for years. They never had a credit card (they laughed at my uncle for having one because they though he was showing off and acting like a yuppie) but they did buy some things from cataloges. I remember my dad telling me never, ever to start that, because you'll be a slave to it the rest of your life. I remember my mum never spending a penny on herself. She'd get money from my dad for xmas, and pretend she bought clothes, but really spend it on the xmas food shopping.

All in all, an excellent example. I'd definately do the same allowance thing with my kids. And I'm very glad to say that now me and my brothers are all grown up, they work far more sensible hours, and have more money to spend on themselves.

daphne_descends

I grew up with just my mum (from age 6) and we never had much money. I don't think it ever affected or bothered me really... I feel lucky that I got to spend so much time with my mum. I could see that our lifestyle was different to my best friends family (who lived next door), they always had things like bottles of coke and lemonade and they had a soda machine and a camcorder, I thought they were rich.

Anyway that's just rambling, if my mum taught my anything it was to be careful, and live within your means. I did have contact with my dad (though not now), and I remember him telling me to never be a slave to anything - alcohol, drugs, tobacco, money. Unfortunately he seemed to be a slave to all of the above so I can't say I took too much notice. When I was 19 I moved 300 miles north because I thought I was in love and for two years basically supported my then partner on an absolute pittance of a salary. I didn't borrow anything and I shopped carefully, eggs or beans on toast was as good as it got. Shortly before I left him I got my first credit card - I hadn't even wanted one but a girl approached me when I was at the airport (visiting home) and I had bags of time to kill so I filled out an application form. It was the credit card that enabled me to leave, I used it to pay for my ticket home and to transport half my stuff.

It was only when I left and moved back home, got a job paying twice as much as I had earned, all this combined with a feeling of freedom, I spent money on myself for the first time in my life and it felt good at the time - looking back I can see that it was just my way of dealing with an awful breakup and shopping took my mind off things, for a while anyway. Then depression led to unemployment, which of course led to debts not being paid off.

Of course I wish I had listened but I think there's something to be said for learning things the hard way. Telling myself that makes me feel better anyway! Tackling things now bit by bit.