What do you think most influenced your money habits? Allowance? Parents?

I didn’t get an allowance. Mom couldn’t afford it – we grew up on welfare and food stamps. When dinner is ramen or potatoes, you can’t afford to pay a kid for chores she should be doing anyway. ;)

However, that growing up in poverty does affect my money habits today. I left the trailer park as soon as I graduated high school. I went to college, but was too poor to finish – had to get a job. But to this day i’m pretty conservative with my money, because I know what it’s like to not have enough. I never want to be there again.

I stock up on sales, because I like to have a pantry full of food. It makes me feel rich in a way that money in the bank doesn’t, because I can look at it and plan and know that I’m not going to have to eat ramen soup for dinner. I shop (and find amazing deals!) at the thrift store for clothes I can alter or repurpose, because I had to be crafty as a kid. (I still can’t stomach paying what they ask for clothes in normal stores unless it’s a clearance, since I envision it as a chunk of rent.) I pay off credit cards every month, because who knows when I’ll be laid off and be unable to do so, or need that money for food?

I may never have much – but I’ve been lucky, ever since leaving home, to have enough. And that’s what counts.

Not sure where I get it from but I am very stingy with my money, it’s one attribute I’m glad I have.

No allowance for me. I grew up very low income. Me? I’m a spender who feels guilty for not being more frugal. Now that I actually have money, I like to buy/do things that I want to do/buy.

I think the fact that I grew up without a lot of money, and was never able to have or do things, makes me a spender.

I didn’t have an “allowance” per se, but I was always able to be given money when I needed it. That hasn’t really changed. I don’t think anything has influenced my money habits. I buy what I need when I need it and what I want when I have extra.

I got allowance when i was in my teens (like ten or fifteen euro/dollar) untill i started working.
From my salary i paid my parents, say fifty to seventyfive euro/dollar per month.
I didn’t had to buy my clothes or shoes or such, my parents paid for that.
All things like contribution to sportclubs, driverslicence, bicycles, (small) motors they paid for too.
My mum started saving dimes from when she was a youngster and kept to it untill this day (probably because she was born in WW2 and experienced poverty from close by).
She always taught us to save and (if possible) never lent money.
Buying a house is something they never did and encouraged us to not do so either.
Untill now i never lent money (apart from lending without interest from my mum and dad) and never bought something for which i had to pay back monthly.
I only bought a house once (with my then girlfriend) which is, of course, something that you have to pay monthly for.
And i’ve been told that my phone-contract is also in a way a loan.
I’m not cheap, whenever i have (enough) money, i spent it.
Unfortunately that doesn’t happen much.
So, to answer your question: yes, i was influenced by my parents’ money-habits.

Edit: And i add; happily so.
Thankfully so.

I never got an allowance and earned my own money from the time I was 15 for clothes and spending money.

I think though that my learning how to handle money came when I was on my own and did not have any real money. I refused to get credit cards and this taught me the very big difference between what I WANTED and what I NEEDED. I learned that most things fell in the first category.

I live a very frugal life, as did my father and his father before him. My mother was also raised in a very poor family, and learned how to be frugal the hard way.

I learned all of my money management skills – or lack thereof – from my father, for better and for worse. On the one hand he had no respect for money and no grasp on the concept of saving. He spent when he wanted to, mortgaged the house, and never planned or saved for a rainy day. On the other hand my father was a teacher, my mother was a stay-at-home mom, and I have five brothers and sisters – you do the math. What I learned from that part is that as long as there is a roof over my head, the bills are paid, and we are eating, everything else is gravy.

I was raised in a low middle income situation, did chores and received an allowance until I got my first job at fifteen (still did the chores but was not compensated with an allowance tho I was given nicer gifts). My parents were very frugal with their money and we lived on a tight budget. After all the kids moved out, my parents who had a bit of a savings, teamed up with a shrewd uncle and invested in apartment buildings and avocado groves (great tax shelter at the time). They made a killing but maintained a frugal lifestyle except for buying a condo on the beach in Malibu as a second home. That was a wise move. My parents separated with mom staying in the Valley and dad at the beach and they are comfortable in retirement but still on a frugal budget. While working at a high paying job, I carefully invested wisely in a 401K but spent money fairly freely. I bought a house, nice new car, several motorcycles and vacationed often and was not tight with my money (the 401K was more than healthy with matching company contribution and was more than adequate for retirement or emergency). I also wisely took out a long term disability insurance policy, which since becoming disabled, pays me more than I ever earned (considering it is tax exempt; if I were still working, however, I would be making approximately three or four times as much as I was on the verge of entering an executive position with huge bonuses and stock options). So, I’m able to continue a near lavish lifestyle and do not need to worry about retirement as the disease that caused my disabilities and my no longer being able to work, will kill me before I reach normal retirement age. By the way, I spent my 401K money on my collections which , when sold off, will provide @sccrowell with a decent income supplement (I made some good investments in jewelry and art, and have a decent equity in my home, all of which I now enjoy). So, my parents did not teach me how to spend money….it’s just something I easily picked up myself!
See ya….Gary/wtf/lurve whore

Being broke will wake you up.
@whatthefluther
I wish I had your parents

My paper route helped a lot (despite that paper routes pay what comes out to about $1.25 an hour for many kids). But it did help me to learn how to take money and pay it out, according to business.

The 2nd thing that helped was all the times I screwed up after I moved out of mom and dad’s house. The mistakes caused me to get a lot smarter. I think most new people starting out on their own, fail to understand that random emergencies automatically take 15% or more out of a person’s income, so a balanced budget alone isn’t automatically a thing that will work long term.

We didn’t have any money when I was growing up, so I sold stuff door to door (which I hated more than life), delivered newspapers (which I now considered Child Abuse), and did whatever odd jobs I could. I did learn how hard it can be to make money, and how frustraiting it can be not to have it.

I got a measly allowance that never added up to much. By the time I finally got a job I was used to not having expenses and not being able to spend much money in one place. Once I did get a job, frugality was much easier. So I think a measly allowance actually benefited me more than no allowance or a larger allowance would have. It was still pretty lame while it was my only source of income, though.

Allowance arrangement. From the age of 16 we increased the allowance for our kids significantly, but it would include clothes, shoes, paper, exercise book, pens and so forth.

I’d say from watching TV during the 80s seeing people live a life of excess, living for today and not thinking about tomorrow. Also, from peers that did the same thing. In addition my parents were very frugal and sometimes just cheap. It was an interesting mix, I’d save everywhere I could on necessities (food, clothes, games, movies) but then blow a huge wad (cash and credit) on occasion on wants like game systems, eating out, etc… My mother showed me how to save money and buy things cheaper. Other than that I had to figure things out on my own, I will do better with my children and I really like the capitation method for kids taught in The Sink or Swim Money Program.

In the last few years I’ve recognized the errors of my ways I don’t use credit now probably will never again, except maybe a house, if I do use again I’ll pay off immediately. I get my current money philosophy from Dave Ramsey’s Financial Peace University.

BTW – I got an allowance as a kid and it by itself didn’t teach me a thing about managing money.

So far almost everyone grew up with modest means. @limeaide I like Dave Ramsey also. I only buy something if I can afford it. But, I do use credit cards for everything. I always pay them off at the end of the month. During time when savings accounts are getting higher interest (so not now) you earn money while your money sits in th ebank for the three weeks before you have to pay the bill. One year I estimated I made $500 using credit cards plus I got a free flight.

My husband loves to spend. He gets excited when he buys new things, big things. I get buyers remorse. Thank goodness he won’t spend if he doesn’t have the money, he also prefers no debt. His parents enjoyed having a lot of money and spent a lot of money and eventually lost all of their money. For my husband it was a lesson or reinforcement for planning for retirement and the future. Interestingly, for his brother, it was a lesson to enjoy your money while you have it, because later you might not have any. One thing I should mention is they grew up in Mexico and all of a sudden there would be high inflation at times and money in the bank might be worth much less all of a sudden. Still, this is so the opposite of my parents who thought about every purchase. As they earned more money they did spend more, but they hate to waste money, they have to see the value in a high priced item. They would never buy a luxury car, because a car is to get you from point A to point B for them, as long as it does that task it is good enough.

I once was talking to my husband’s mother and I generalized that Jewish people I think have the stereotype of being cheap, because they BELIEVE things go wrong, so they tend to save for a rainy day (she is Catholic and her husband is Jewish). Maybe it is from surviving the holocaust, I don’t know? She replied, “that is why my husband spends all of his money I think. He believes things can go wrong so he lives it up today.” I thought it was interesting how similar experience could result in taking away completely different lessons.

This question is making me wonder how I will turn out as I did not grow up with modest means. I was hoping someone would have an example from that, but I’m not seeing one. Well, now I’m following the question.

@DominicX My husband grew up with what seemed like tons of money from his perspective. He had a new car every year from the age of 13 (yes, 13, they used to let him drive to the corner and pick up some groceries) through his high school years, and he had two cars in college, the first a Mercedes, and then later BMW M3. They travelled, he had a Cartier watch and other jewelry. Here’s the thing, they did not save and made some bad money decisions. But, he is very good with his money and learned from his parents mistakes.

I don’t know how your parents are with money, but this is my advice, even though you didn’t ask for it. Make sure you save for times when you might hate your job and want to quit or get laid off. I think it wise to have at least a years salary in the bank for difficult times. Not that you will have it at the age of 22, but to keep the goal in your mind. I want to be able to live off the interest of my money when I retire, you might have a different goal, but I think what is important is to think about it, not obsess about it, but think about it once in a while. I love watching my money grow just as much as my Porsche in my garage. Both give me happiness, you can do both at the same time. And, be patient, don’t try to have all of the things us old people have when you are only 25. I had a Honda Civic and Mazda Miata and other little modest cars for many years. Don’t buy things on credit or with credit cards that you cannot pay off at the end of the month. Start slow.

Also, rule of thumb, money doubles in 15 years at 5% interest. So, if you save a million dollars by the age of 50, you should easily be able to have 2 million by 65 even if you never save another dime after the age of 50. Money gets money.

@JLeslie Love the answer +1.

Unless @DominicX you are part of the old money rich, never have to worry about. Then you have money and don’t have to worry about it. All you have to worry about is feeling happy, fulfilled, productive, and useful.

@JLeslie

Thanks. Interesting points. And no, it’s not old money rich, my dad was not raised wealthy. He became wealthy because of investments; he’s a venture capitalist.

My grandparents. They were the kind to buy something outright, rarely in their lives used credit except for mortgages and cars. From them I learned to make budgets, calculate rates of interest, little jobs of charging & being paid for things like ironing clothes or washing a car. From the time I can remember, I had a savings account in my name and a bankbook so I could go and deposit money received from holidays or collected through doing chores. I also grew up with a trust acct. I was put in charge of at 13 or something like that, it was something I actively watched grow, added to and later on borrowed against. I believe all children should be taught how to count physical money and change as well as manage an acct. in their names, it’s really empowering once the teen years come around and they start working and paying for larger things on their own like phones, cars, car insurance, clothes, etc.

@hungryhungryhortence You reminded me that in NY, when I was little, in 1st grade the teacher opened a savings account for you, and you brought her/him money each week that she deposited for you. I don’t know if NY still does it. I think all young people should have savings accounts from a young age.

God, I hate this topic and I hate budgeting, and I hate planning and I hate that you bastards are so good with money. I think I feel strangely guilty when I have too much money in the bank. I can’t even imagine having a years salary in the bank. I have great difficulty imagining doing better than my parents. I somehow have a belief system that this is a great indulgence of the Western World and it makes me feel very uncomfortable to hoard anything. I’m not saying it’s right but I have a very difficult time with this stuff.
Maybe I’m addicted to poverty. ~_~

@SeventhSense That is interesting, and very self aware. So, it isn’t that you are a spender per se, that you bunches of material things; but that you just feel odd having a bunch of money in the bank. Never heard it put that way before. Thanks for contributing to the conversation. Did your parents ever say anything to contribute to this guilt? Did they ever accuse you of thinking you are better than them or others in the family?

@JLeslie
Oh God don’t get me started. We’ll need a couch.
On the bright side my parents taught me to be generous. I give everything away. I can’t stand clutter and I have no attachments to things..though I do like my truck. :)

Parents.

@JLeslie Just wanted to add that you have consistantly asked brilliant and thought-provoking questions. Lurve.

@Zen thank you.

My parents + girlfriend + trial and error in my early twenties. My parents taught me well, but I had a hard time putting it into effect until I racked up a $7000 credit card bill about 2 years ago. I was only 25!!! Luckily I paid the SOB, consulted the likes of Dave Ramsey, and have learned an important lesson – if you don’t have the cash for something, save. If you are in debt, get out. If you can’t afford it don’t get it! And if you MUST finance, save for the largest downpayment you can so the interest rate isn’t highway robbery!!

Being really REALLY poor for the ten years I was a single mom. I wasn’t raised poor, by any stretch of the imagination, but wound up that way as an adult for a long time.

Little things bug me. Like, at work we have medium size trash cans but trash sacks for tall kitchen sacks, so at least half the bag goes unused and it drives me nuts! I’m anal about using too much foil too (drives me NUTS when my husband rips off a big thing of foil to cover up a dish, when we have plastic dishes with lids!!!!). I don’t like using too many paper towels in one fell swoop. And a lot of other things.

I feel so blessed now, believe it or not, because I can buy paper towels and foil and trash sacks when I run out. I’m not kidding when I say I’d go literally months and months without them. Every little thing I have feels like a total blessing, including my fridge (Was without one for a couple of months) my stove (was without the stove part for a year, but still had the burners) my dryer (went without for 3 years) having a heater in my cars (went without for two years….) I just hate spending money unless I have to.