The topic of money is still something that isn’t openly talked about in many households, despite the economic impact disasters such as COVID19 have had on our household incomes. For children, money can be a bit of an enigma. The concept of where the money comes from, or how much money parents have, is a total mystery to many children. Unless this sort of conversation is bought up within families, children grow up still confused about money and personal finances.
It wasn’t until I moved out of the family home that I discovered how inexperienced I was when it came to managing my personal finances. There are definitely things that I wish my parents had taught me when I was a child, or even when I was a teenager. Having more information and knowledge about managing my monthly incomings and outgoings would have helped me to make informed decisions when I needed to make big choices.
Here are just 3 things that I wish my parents had taught me about money!
1 The cost of living is far greater than I expected.
When I was a child, I would ask for certain things, such as toys, and I was usually told that I wasn’t allowed them because my parents couldn’t afford them. At the time, I remember thinking that my parents saying this was just an excuse because they didn’t want to buy me something, but I now realise that when they told me that they “couldn’t afford” it, they truly meant it.
I had no idea just how expensive it was to simply survive! The cost of living is much higher than I anticipated and when I moved out of the family home, I was shocked to find out just how high my monthly outgoings were. I wish that my parents had prepared me for just how much money would leave my account each month to cover household bills, council tax, food bills, and everything else that was needed just to stay afloat.
2 Always make sure you keep an emergency fund.
Never once did I hear my parents, or any other adults for that matter, mention the importance of having an emergency fund. It took me a fair few disastrous financial moments to realise that unexpected bills have the ability to completely turn your life upside down. Life is full of unexpected twists and turns and expensive bills usually pop up out of the blue. Vet bills, car maintenance, and home repairs can all hit at the most inconvenient of times, which is why it’s vital to have an emergency fund.
3 Keep a spreadsheet detailing your incomings and outgoings.
Understanding your incomings and outgoings is vital if you want to stay on top of your personal finances. As finances were so rarely talked about when I was growing up, I found the concept of tracking my expenses to be totally alien. For a while, I would just spend money, pay bills, and hope for the best.
It wasn’t until I started to track my expenses properly that I discovered just how much I was spending, versus how much was coming into my bank account. I wish that I’d been taught how to accurately track my finances and create a financial budget that I could stick to because it took me a long time to understand how all my small spending sprees were adding up over the months.
Overall thoughts
These are just a handful of things that I wish my parents had taught me about money while I was growing up.
I understand that for many, money is a difficult topic to discuss. However, as a parent, I want to ensure that my own children are prepared financially for when they decide the time is right to start taking more responsibility for their finances. I want to ensure that they know the importance of budgeting, keeping track of their expenses, and saving money.
Did you experience similar financial situations? I’d love to know if you were taught about money when you were growing up! Let me know in the comments.
