My mother used to say, “Money doesn’t grow on trees, you know.”
It’s a phrase that resonates with many of us, a nugget of wisdom passed down through generations. Yet, despite hearing such sage advice, how many of us still find ourselves squandering our paychecks or living paycheck to paycheck?
Here’s the kicker.
Our money habits, especially the bad ones, often take root during our childhood. They grow and thrive unnoticed until one day, we’re left wondering where all our hard-earned money has disappeared.
So maybe you’re asking yourself, “Why am I so bad with money?” Well, you might be carrying some financial habits from your childhood that are sabotaging your financial health.
Are you ready to uncover these habits?
Let’s dive into the seven financial behaviors developed in childhood that could be holding you back from achieving financial stability.
1) Living beyond their means
As a kid, do you remember begging your parents for that shiny new toy, despite knowing it was way out of their budget?
Well, guess what?
Some of us never really outgrow that habit. We grow up, start earning, and suddenly, we’re surrounded by all these shiny new “toys” – the latest smartphone, a flashy car, designer clothes.
And just like that, we’re spending more than we earn. The result? A mountain of debt and a constant struggle to keep our heads above water.
Living beyond one’s means is a habit often ingrained in childhood. It’s time to recognize it and take steps to change this damaging behavior.
2) Not understanding the value of saving
I remember when I was a kid, my grandmother used to give me a small amount of money every week. She told me it was for my “savings”. Of course, back then, the concept of saving was alien to me.
I would spend it all on candies and toys, leaving nothing for the proverbial rainy day.
As I grew older, this habit continued. I would spend my entire paycheck with no thoughts about the future. It was not until I faced a financial crisis that I realized the importance of savings.
Turns out, the old adage “A penny saved is a penny earned” has some truth to it. If you’re not used to saving money from an early age, you could struggle with financial stability later in life.
Sometimes it takes a hard lesson to understand the importance of building up a nest egg for unexpected expenses or long-term goals.
3) Ignoring the reality of debt
Debt. Just the word can send shivers down our spines, right?
As a youngster, I used to watch my parents juggle bills every month, trying to keep up with the ever-growing pile. I didn’t quite understand it then, but it was a painful reality that followed me into adulthood.
I found myself falling into the same trap. Credit cards became my best friends, and before I knew it, I was drowning in a sea of debt. I would push aside the bills, ignore the overdue notices, and continue spending.
The thing is, ignoring debt doesn’t make it go away. It only grows bigger and scarier. If you grew up seeing debt as a normal part of life, it’s time for a reality check.
Debt is not your friend; it’s a burden that can hold you back from reaching your financial goals. It’s time we face it head-on and start working towards becoming debt-free.
4) Lack of financial education
Remember those math classes in school where we learned about algebra, geometry, and calculus?
While they were important, I can’t help but think how useful it would have been to learn about budgeting, investing, and managing debt.
The lack of financial education in our formative years can lead to poor money management skills in adulthood. Without a basic understanding of finances, we’re more likely to make mistakes that put our financial health at risk.
So if you’re struggling with your finances, it might be time to hit the books again. This time, not for algebra or calculus, but for some real-world lessons on money management.
The good news is, it’s never too late to start learning!
5) Falling for instant gratification
Did you know that marshmallows can teach us a thing or two about financial habits?
In a famous psychology experiment, children were given a marshmallow and told they could either eat it immediately or wait and get two marshmallows later.
The children who waited demonstrated the ability to delay gratification – a crucial skill when it comes to managing money.
As adults, we face our own “marshmallow tests“. Do we buy that expensive gadget now, or do we save the money for something more substantial in the future?
It’s easy to give in to the temptation of instant gratification, especially if it’s a habit formed in childhood. However, mastering the art of delayed gratification can be a game-changer for your financial health.
6) Feeling shame about money struggles
We’ve all been there. That feeling of embarrassment when we can’t afford something, or when we have to admit we’re in debt.
Growing up, I often felt ashamed of my family’s financial struggles. It was a burden I carried into adulthood.
But here’s what I’ve learned: Financial struggles aren’t something to be ashamed of. They’re part of the human experience and more common than we might think.
If you’re going through a tough time financially, remember that it’s okay to ask for help. There are resources and people out there who can provide guidance and support. You’re not alone in this journey, and it’s never too late to turn things around.
7) Not setting financial goals
Imagine setting out on a journey with no destination in mind. That’s what it’s like to manage your finances without clear goals.
As a child, I didn’t understand the concept of financial goals. But as I grew older, I realized how important they are for financial stability.
Financial goals give you something to strive for, a reason to save, and a plan for your money.
Whether it’s saving for retirement, buying a house, or paying off debt, having clear financial goals can steer you in the right direction and help you make better financial decisions.
So if you’re feeling lost in your financial journey, take some time to set your goals. It could be the first step towards breaking free from your childhood money habits and achieving financial stability.
The final takeaway
If these habits resonate with you, don’t despair. Realizing you’ve carried these financial behaviors from childhood is the first step towards change.
Start by recognizing these habits. Observe how they show up in your financial decisions. Ask yourself – does this serve my financial wellness?
Changing ingrained habits is not an overnight journey. It takes time, patience, and a good dose of self-compassion. But every step forward is progress.
Seek help if needed. Financial advisors, self-help books, online courses – there’s a wealth of resources out there to guide you.
Don’t let your past define your financial future. You have the power to rewrite your money story and create a financially secure life.
As Benjamin Franklin rightly said, “An investment in knowledge pays the best interest.”
So invest in your financial education and watch as it transforms not just your bank balance, but your entire life.
