just wondering

[irmanator]

for those of you who are pretty frugal and investment savvy at a young age, what , inspired you? Did your parents do something to help? I have some kids 18, 15, 13 and want them to do better than i did. I read that starting young is the best for savings and retirement but it is difficult to get that into the head of a 18 with her first job and thinks she will never get old. (lol)

[mbongwe]

I had the "luck" to live in a country which survived big economy crisis in my teen age. This and my parents' reasonable conduction to money taught me to be frugal.
Yes, starting young with saving is the way to go. And to your 18 you can tell that she can be financially free much earlier than pension time if she starts saving and investing now.

[disneysteve]

Originally Posted by irmanator

for those of you who are pretty frugal and investment savvy at a young age, what , inspired you? Did your parents do something to help?

My parents were frugal. I think that is the single biggest thing. We went to flea markets and auctions and yard sales and farmers markets. We went to thrift shops. We trash-picked. We didn't do it because we were poor or couldn't afford better. We just did it because it was fun and interesting and responsible. My father taught me, by example, about saving and investing and buying bonds and stocks. I went with him to the safe deposit box and loved counting the bonds and looking at the neat stock certificates. Later, I went with him to the broker and would check the business page every day to see how "our" stocks were doing.

I think kids learn best by example. If your kids see you spending willy-nilly, not being price conscious, not clipping coupons or shopping sales, buying everything new and full price, that's what they'll do. If, however, they see you being conscious of prices, comparing brands in the supermarket, using coupons, checking the sale ads each week, stocking up on non-perishables when there is a good sale, browsing Goodwill, pulling in the nice table that your neighbors put out at the curb, etc., and talking about saving and investing for the future, then they learn to do the same.

[Broken Arrow]

My father follows the "Make more" philosophy whereas my mother follows the "Spend less". I'm trying my best to follow the best of both worlds.

[jIM_Ohio]

My mother squandered quite a bit of money throughout the years. It caused lots of fights between her and my dad, and I vowed not to put my kids through that.

[Snave]

I started saving with my first job out of college and with my first paycheck by maxing my 401k (15% at the time). This was the single best thing that I have done. I never saw the money from the first day I earned it, so I never knew what it was like to not have it. Heck, one day I was broke and the next I was making a decent salary minus 15% for my 401k. It was still a lot more than I was making the day before! I can't really say why I did that. My parents were always pretty good with money and I am sure I picked it up there. I would agree with DisneySteve about seeing my parents make the right financial decisions. I wasn't as fortunate as steve in regards to the stocks, and bonds, etc... but more along the lines of bargain shopping and clipping coupons and just being told "No - it costs too much. If you want it you will have to save for it." We never really talked stocks or any of that, so that will be one thing different with my children, but I guess I learned enough from watching to learn to save. From there, I just watched it grow and that got me excited to save more. Learning about compound interest and plugging some numbers in a calculator was about all I needed to then get really excited. I'm kind of a numbers nerd like that. I started saving as much as I could and investing it. I began to read personal finance books and now I am the one re-balancing my parents portfolio and checking in on my sisters as well.

[Snave]

Irmanator, I know when my sister was getting out of school and just starting out, my dad did a match program for her. She didn't, and still doesn't, make a lot of money. At the time, her company didn't match her 401k the first year, so he did a matching portion. He also did the same for an emergency fund. If she would save so much, he would kick in a little. I don't know what % he used to do this, but it got her to save early. I think he also did something for having her credit card paid off each month (maybe an additional $25 in her EF or something like that). I know this was put in a money market fund. I know that some may just say this is enabeling a young adult, but I think my parents thoughts were that if she ends up with credit card problems or a major emergency, that they would probably have to pick up the pieces anyway. I think it got her off on the right track. I believe they stopped contributing after the EF was funded and the, the company matched after the first year. I'm sure they don't do the cc thing either. She's 29 now and has a condo and an EF and a few dollars stashed away in her 401k. She doesn't make more than 30K a year and probably will always be in that type of boat from an earning standpoint. But, she is probably way better off than others her age that have cc debt and no savings. I think anyway you can get your kids to save will be a good thing. I wish it was taught in school!

[disneysteve]

Originally Posted by Snave

I'm kind of a numbers nerd like that.

I was totally a money nerd as a kid. It's funny to think about it now, seeing how I turned out as a personal finance junkie. You could have easily predicted it when I was 8 or 10 or so. I used to keep a written breakdown of my money - how much in coins by denomination and such. I used to save and roll pennies. I had a cabinet in my room that had a few dozen rolls of pennies. I also loved half dollars. We found a plastic tube somewhere that was just the right size to hold them and I filled that tube with nearly $400 in half dollars. Even my Tootsie Roll bank had a little piece of paper taped to it with the date and the amount that was in there. One of my favorite toys was a bank that automatically sorted coins and had buttons that let you take out whichever coins you wanted. Just needed a dime, you could just push the button under the dimes.

No big surprise that I'm still a money guy.

[ScrimpAndSave]

I think my parents constantly reminded me how they paid cash and actually owned everything we had...even if it was less flashy than what other families had.

That left a lasting impression on me.

[MonkeyMama]

My parents set a very frugal example and taught me about money at a young age. Simple things like having a checking account (and a credit card) and all that from a young age. Knowing I Was expected to get a job at 16 and pay my own bills, etc. You do need to start young and be consistent.

Plus my parents always let me know how hard they worked to where they got and how it doesn't come easy. It was very clear to me from a very young age that money doesn't grow on trees and you never get something for nothing.

I had to laugh when my 4-year-old was telling me that they had gotten the scooby doo graham crackers the other day because they were cheaper. I didn't know he understood the concept of "cheaper." Anyway, my husband told me that if the kids want treats at the store they know it has to be on sale. & even then, they negotiate. So they know how to look for sales. & my 4yo is a pretty good negotiator (very important skill). I mean, just a perfect example of how you start young. You just involve the kids in money decisions and let them see how the world works. It's the same kind of stuff my parents did with me.

[maat55]

I learned nothing from my parents, about money. I was so poor I thought
I would never be able to own a home, actually, I still don't, but I'm getting there.

[kimiko]

I remember laughing when my sister summer work program forced her to open an IRA several years ago since the concept of a teen saving for retirement was so ridiculous. But I did learn to save somewhat from not having any allowance. I only had access to money once I turned 16 and found a job working in the school cafeteria. I was ecstatic thinking I could afford all these stuff, but the pay was so terrible that I ended up not spending any. I think I made around $60 a month back then.

[irmanator]

Thanks for all your comments, I have been working on the oldest. She saves a little but then again she paid her own deposit on college. I wish i could get her to listen instead of giving me that spaced out "if i pretend to listen will you go away" look

[creditcardfree]

I remember helping my dad sort his returned checks. I had to put them in numerical order, so it was easier for him to balance his own checkbook. I had a bank and a small child's safe with a combination lock.

My parents at some point in high school gave us an allowance of $75/mo. There were certain things we were expected to pay for out of this money. Tickets to football games, movies, makeup and hair products and more. That part alone helped us to figure out on our own how to make the money last for the whole month. How to prioritize, how to save for larger expenses. Although, I remember waiting for birthday and Christmas to ask for the more expensive gifts.

Does your oldest have a bank account? If she has a job, she could start saving some money in a roth. Maybe you could match her first $100 or something to that effect.

Just talk about what you are doing with your own financial situation...don't have it come across that she should do the same. She is a teenager after all, they don't always want to be like their parents!!

[disneysteve]

Originally Posted by creditcardfree

I remember helping my dad sort his returned checks. I had to put them in numerical order, so it was easier for him to balance his own checkbook.

My daughter is 12. She has been balancing our family checkbook for about 2 years now. Initially, she did it with me by her side. Now she does it by herself and just asks me if she runs into a problem.

[moneybags]

Originally Posted by irmanator

Did your parents do something to help?

I am different than most responders. My parents' financial example was the catalyst for my frugal/savings way, but it was more of a "I don't want to live like that". Basically, they lived check to check and on credit. A lot had to do with their circumstances. I've always been a saver, no matter what my income level, and I still subscribe to that theory. No matter how low your income, you can still save something. In terms of figuring out retirement planning, investing, etc. I did it on my own, but hope to pass my knowledge on to my children so they can get an earlier start.

[LuxLiving]

I was put in charge of paying the family's bills starting at age 12 and balancing the parental-units' checkbook.

Like creditcardfree, we were given an allowance at a young age and told what it covered. All $$'s gone and no holeless shoes? Too bad. Wear the ones with holes till next month! You soon figure it out.

[gamecock43]

I am somewhat young (28). Financially, I am doing better than my friends. I attribute this because my mother was a bipolar money whacko. One day she was remodeling the house and having hardwood floors put in, the next day she was telling me she does not have the money to send me on the ski trip I had been planning to go on for the past few months.
As soon I was legally old enough to work, I got a job. I did not want to depend on my mother for anything financially, because either she would tell me she does not have the money for it, or I would get a huge guilt trip from her when she would pay for things.
Dealing with her financial mess has been one of the biggest lessons in my life. Her priorities were so out of whack financially I could never get a clear picture of what kind of money we had coming in. I was constantly told we were broke, she was too broke to visit me at college, she couldnt pay my college tuition, then coming home to visit I would see the house had been completely refurnished.
Now I am a bit of a money hord. I keep track of every dollar, and if my credit card balance creeps up beyond 1k I start having anxiety attacks. I have money in the bank, I have excellent credit, and I know I will be ok, but I dont think that was the proper way to teach a kid about money.

[jIM_Ohio]

Originally Posted by gamecock43

I am somewhat young (28). Financially, I am doing better than my friends. I attribute this because my mother was a bipolar money whacko. One day she was remodeling the house and having hardwood floors put in, the next day she was telling me she does not have the money to send me on the ski trip I had been planning to go on for the past few months.
As soon I was legally old enough to work, I got a job. I did not want to depend on my mother for anything financially, because either she would tell me she does not have the money for it, or I would get a huge guilt trip from her when she would pay for things.
Dealing with her financial mess has been one of the biggest lessons in my life. Her priorities were so out of whack financially I could never get a clear picture of what kind of money we had coming in. I was constantly told we were broke, she was too broke to visit me at college, she couldnt pay my college tuition, then coming home to visit I would see the house had been completely refurnished.
Now I am a bit of a money hord. I keep track of every dollar, and if my credit card balance creeps up beyond 1k I start having anxiety attacks. I have money in the bank, I have excellent credit, and I know I will be ok, but I dont think that was the proper way to teach a kid about money.

are we brothers and just don't know it?

[gamecock43]

true true. my mother did teach me well...to bad she had to live thru hell to teach it. I cant imagine being so irresponcible that I live on a swinginging scale ranging from flat broke; no money in the account to spending every dime the minute it came in on unnecessary items....she was so constantly stressed out.