My partner and I entered the workforce during the prosperous 1990s, absorbing two misguided beliefs: there would always be jobs available, and real estate was a foolproof investment. Our first child arrived amidst the turmoil of the Great Recession, with our second coming during a sluggish recovery. We were fortunate not to lose our home; however, I faced job loss, and our savings dwindled rapidly. Navigating parenthood during such uncertain financial times was daunting, akin to the experiences of those who lived through the Great Depression. This has instilled in me a more cautious approach to finances, and I’m eager to impart these lessons to my children. Here are eight important financial principles I want my boys to understand:
- Delay Your Purchases: If you think you need something, hold off for a month before buying it. I’ve found that waiting often diminishes the desire for items like new furniture or gadgets. This practice helps me manage those impulsive wants.
- Question Borrowing Offers: Just because a bank is willing to lend you money doesn’t mean you should accept it. If you’re barely scraping by after subtracting potential loan payments, trust your calculations over the bank’s assurances.
- Consider Layaway: For larger purchases, consider setting aside a bit of money each week. This method not only builds anticipation but also encourages thoughtful spending.
- Home Is What You Make It: Many believe ownership is necessary for a place to feel like home. However, countless families thrive in rental spaces, showcasing that happiness is not contingent on property ownership.
- Reframe Your View on Home Investments: Your home should not be viewed primarily as an investment. There are no guarantees that it will appreciate in value when you decide to sell—it’s fundamentally a place to live.
- Invest in Experiences: When spending money, prioritize experiences over material items. Research consistently shows that memorable experiences provide more lasting happiness than physical possessions. So, plan that adventure instead of buying the latest tech gadget.
- Live Within Your Means: Strive to keep housing expenses to about a third of your income, avoiding the trap of overspending. Many young adults today, facing challenging job markets, find value in cohabitating or living at home—completely acceptable choices during these formative years.
- Embrace Flexibility: Unlike previous generations that defined success through job titles, today’s job market rewards adaptability. I want to teach my sons not only to refine their skills but also to explore diverse opportunities, cultivating a network that allows them to pivot as needed.
I hope my children won’t have to bear the financial burdens that came with the recession. Ideally, by the time they enter the job market, the economy will be thriving like it was in the late ‘90s—a mother can dream, right? For more guidance and resources, check out this excellent resource on treating infertility and learn more about home insemination methods from experts at ICI.
In summary, these lessons are designed to equip my children with a better understanding of money management, teaching them to navigate financial decisions with confidence and caution.