Who taught you about financial responsibility?

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robotobor
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Who taught you about financial responsibility?

Post by robotobor » Fri Jan 17, 2014 1:57 am

Did your parents teach you how to manage money properly? I'm sure this question was posted on this forum before so please excuse me for repeating. I'm really curious because my parents never properly took the time to teach me financial responsibility. That being said, their reckless behavior with money inadvertently taught me not to emulate them. Would you care to share some of the lessons your parents or grandparents taught you? If not family, perhaps a friend or a mentor?

Thank you! :D

Johm221122
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Re: Who taught you about financial responsibility?

Post by Johm221122 » Fri Jan 17, 2014 2:13 am

Parents or grandparents(who raised me) never mentioned money .A Roommate used to buy options using a formula with "Heard On The Street" column in Wall Street journal. :oops: but it got me reading and learning
John

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wander
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Re: Who taught you about financial responsibility?

Post by wander » Fri Jan 17, 2014 4:56 am

robotobor wrote:Did your parents teach you how to manage money properly? I'm sure this question was posted on this forum before so please excuse me for repeating. I'm really curious because my parents never properly took the time to teach me financial responsibility. That being said, their reckless behavior with money inadvertently taught me not to emulate them. Would you care to share some of the lessons your parents or grandparents taught you? If not family, perhaps a friend or a mentor?

Thank you! :D
Although my parents never taught me how to manage money, their lifestyle taught me indirectly. I am frugal because of them. When I have too much money in checking/saving accounts doing nothing, I think about making it work for me.

IlliniDave
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Re: Who taught you about financial responsibility?

Post by IlliniDave » Fri Jan 17, 2014 5:21 am

I picked up a general sense of financial responsibility from family, primarily parents and grandparents.

That's a little different than managing money properly. Aside from the basics like spend less than you make and set some aside for a rainy day, I was pretty much on my own for putting together the details and working out how I'd manage my money. Similar to others, my family was not the sort to let people look under the hood. They also are not particularly sophisticated. Just prudent.
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shmidds
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Re: Who taught you about financial responsibility?

Post by shmidds » Fri Jan 17, 2014 5:55 am

My dad.

We played the board game "Stocks and Bonds" when I was a kid. My brothers and I would either go broke or strike it rich buying "Stryker Drilling" stock while my dad would always maintain a 50% stock/bond split, rebalance, and either win or come in second. We loved playing it as a family and I learned more about the stock market than most 10 year old kids.

As I got older, he encouraged us to save at least 10% of our pay.

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Re: Who taught you about financial responsibility?

Post by Sheepdog » Fri Jan 17, 2014 6:01 am

My mother. My father had major shortfalls in that area, but, in a way, that taught me as well.
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Re: Who taught you about financial responsibility?

Post by carolinaman » Fri Jan 17, 2014 6:20 am

My parents were frugal because they had to be as a blue collar family and they were fiscally responsible, always paying their debts on time. That influenced me but perhaps the most influence was with an older BIL after we were first married. He was a self made man who had his own small manufacturing business that was quite successful. He would cite things like self insure, do not go in debt, be self reliant, etc. He would buy machinery and equipment from govt surplus auctions and do other things that kept his costs much lower than his competition. I had never heard his fiscally conservative philosophy before and it made quite an impression upon me. However, I think for the most part I was self taught.

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Re: Who taught you about financial responsibility?

Post by livesoft » Fri Jan 17, 2014 6:31 am

I suppose it was the usual suspects:

Parents, teachers, bosses, other adults, friends, TV, radio, books, magazines, and Louis Rukeyser.
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Re: Who taught you about financial responsibility?

Post by OAG » Fri Jan 17, 2014 6:31 am

Learned by trial and error (lots of errors). Back in the day I had little money and lots of time. The opposite now. Greatest financial lesson learned and taught: no debt single fugal spouse (over 50 years now) and 4 self-reliant kids (that did not boomerang). :D
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chw
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Re: Who taught you about financial responsibility?

Post by chw » Fri Jan 17, 2014 6:52 am

My grandfather. He taught me the diversifying nature of mutual funds, especially a balanced fund with stocks and bonds. He worked part time selling American Funds in the 1940s and 50s to coworkers in his machine shop (he was union steward). The commissions he earned (which he rolled into fund purchases), helped my grandparents live a comfortable retirement, which otherwise would have been modest with only SS to live on.

Unfortunately have had to find my own way on day to day budgeting and spending. In general have been a saver most of my life, which has helped me avoid major financial setbacks.

I feel financial literacy, while certainly it should start at home, should be supported with basic finance classes beginning in grade school. I see too many kids that grow up thinking things are simply bought with the swipe of a card, and have no concept of budgeting or the relationship of cost to time spent to earn a purchase. I feel this is the root of the student loan crisis that is currently stretching many new graduates beyond what they expected at graduation.

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Cernel
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Re: Who taught you about financial responsibility?

Post by Cernel » Fri Jan 17, 2014 6:54 am

My parents!
When I started my first job at 15 they had one rule and that was for every $5 earned I would pay them $1 for rent, put $3 in savings and have $1 for myself. This certainly taught me the value of saving. Little did I know that that $1 Rent I was paying, they were actually saving for me and when I left home to go to college, they provided me a nice going away present.

My parents also taught me to live within my means. Never buy anything you can't afford. If you want something, save for it and pay cash. Never pay interest. As a result of this learning, the only loan I have taken out is for my mortgage. Everything else I have paid cash to include my cars.

katzmandu
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Re: Who taught you about financial responsibility?

Post by katzmandu » Fri Jan 17, 2014 6:59 am

My father

I can't recall exactly how early or late he started, but he was the one who got me into his own company's 401k early when I took a summer job that lasted 3 years. He had me start a ROTH IRA as well and was adamant I keep on contributing monthly. He did very well for himself and enjoys a quite comfortable retirement. I hit 3x salary this year (I'm 42 and sadly wasn't always as diligent and focused as I am now), but apparently that's 3 years earlier that the suggested mean so barring unforeseen circumstances, I hope I will be as good as he is someday.

Thanks, Dad!

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Re: Who taught you about financial responsibility?

Post by TRC » Fri Jan 17, 2014 7:40 am

NOT my parents, that's for sure!

My wife taught me to save. Her father turned the light on for me about investing & living below my means. But everything else has been self taught.

Ironically I'm paying my house off this month and my parents (age 73) still have a mortgage.

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Re: Who taught you about financial responsibility?

Post by jollystomper » Fri Jan 17, 2014 7:41 am

I learned by observing a lot of people from the time I was in my early teens, and seeing the outcomes. My parents didn't talk much about money, but were lower middle class and frugal, and weren't ashamed to say "no, we don't have money for that". I noticed that when whenever a major purchase was made, my mother would take on a part time job (there were 7 of us for full time would have been tough) to play off whatever loan was needed. I remember going with my Dad when he was looking to buy our first house (he was already in his late 40's) and how he stuck to what he and my mom had budgeted for. I also saw other family members and family friends do extremely strange things with money... which instill in me a desire to avoid debt as best as I could.

In college I saw a lot of rich kids waste money, and a lot of poor kids trying to act rich and go into debt... but almost all of my close friends were those with financial responsibility. I was impressed with one, coming from a very well off and well known family, not acting like the stereotypical rich kid but being very frugal. I asked him about it once and loved his reply: "It's my parents money, not mine. I want to find my own way and not depend on them".

After college when I started making money I made a couple of financial errors, one was a very public embarrassment - but rather than get mad, I realized that my decisions were to blame, so I tried to make better ones. I'll never forget overhearing a co-worker who'd worked for the company for 5 years when I started saying how he only had $500 to his name - I never wanted to be in that position.

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Re: Who taught you about financial responsibility?

Post by nisiprius » Fri Jan 17, 2014 7:49 am

That is a very interesting question. As with many other things in life, my parents, probably my mother more than my father... but the WAY I think they did it was interesting.

1) Example. I saw my mom sitting there with the check register--she had one of those book-type checkbooks, rarer today--that had a spiral binder, three checks per page with perforations to tear them off, and a check stub at the binding edge with the preprinted check number to note the amount and payee. The fact that I remember it so well shows you that a) if it were today, I might have been misdiagnosed as being "on the spectrum," and b) she must have done it fairly often. I don't remember her talking about it other than to say she was doing.

2) Gradually giving me more and more scope for doing things myself. Not too much talk, but giving me a loose structure in which I could learn by doing.

Mostly, an allowance as a kid--just an straight allowance, I didn't have any jobs and didn't get paid for doing chores (and didn't do chores)--I envied the kids with paper routes. But, anyway, an allowance and I had to save up for things.

In my early teens, I was interested in electronics and perpetually "sending away" to places like Allied Radio and Heathkit and dearly beloved long-gone Edmund Scientific. I had to save up the money and fill out the order form and address the envelope and determine the shipping zone and add up the total (without a calculator--an ordinary home wouldn't have an "adding machine" unless someone had a home business like selling Avon).

Anyway, that wasn't exactly financial responsibility but it was sort of pretraining for filling out a tax form.

Incidentally, in those days it typically took three weeks or more for mail order because you mailed a check. Credit cards meant Diners' Club for meals, and you certainly would dream of phoning an order because "long distance" calls cost a fortune, I mean like $5 which would be like $50 today. And when they received the check they would wait for it to clear. By mail. I'm trying to remember when mail-order companies began to brag about "same-day shipping."

In college, apologies to anyone who had it tougher and thinks this was being ridiculously coddled, but I continued to get a (much larger) allowance and had a checkbook. I was on the meal plan but they didn't serve food on weekends and there was no kitchen in the dorm so I had to budget for eating out, and carfare, and clothing, and study supplies and such.

3) I do remember being explicitly taught how to balance a checkbook. And in junior high school some class, and I'm ashamed to say I don't remember what course it was, gave us the assignment of "preparing a budget for a family with an income of $5,000 a year." Fantastic! Cooperative project between my mother and myself. Although it was a little weird because we had a considerably higher income than that and she kept scratching her head trying to figure out how you'd do it.

4) My dad started bank accounts for us, forget whether they had any specified intention or how that worked, but we did have bank books and at the beginning he made a little ceremony of taking us into the bank so they could enter the interest. I believe we would sometimes go into the bank to get change! Point being, from a very young age we had the notion of being bank customers, and that a bank was a place we could go into, and not be intimidated by the surroundings. That was the fifties, and at that time banks still had the tradition of wanting to inspire confidence by looking like classical Augustan Rome with lots of pillars and columns and everything made of granite, they were austere-looking, not like the friendly supermarket.

Very very very little talk. Wait, yes, I do remember vague worried discussions between my folks about "whether they could afford" things. Learning by eavesdropping.

When I was maybe seven, my grandfather showed me a little porcelain box--the kind of thing that sat on a table--intended to hold cigarettes, maybe? He told me it was a magic box that made money grow, put some coins into it, and during the day made a big deal of coming back to open it up and see how it had grown--there was more each time. I honestly don't remember if he said anything about interest or banks or what the HECK that was all about. Other than that it was weird, and it was nice of him to give me the money, and the box was sort of interesting. I think that was an example of an on-purpose-lesson that didn't "take" because it was mistimed and it wasn't a "teachable moment."
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Vittelx
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Re: Who taught you about financial responsibility?

Post by Vittelx » Fri Jan 17, 2014 8:04 am

No one really.

Got a job at a bank in my early 20's and worked for about 10 years as a financial adviser.

After some years it became clear to me that the best thing you can do for yourself financially is to live below your means. Dont spend your entire paycheck, save as much as you can each month and don't ramp up your lifestyle as your income rises it wont make you any happier.

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Re: Who taught you about financial responsibility?

Post by Hawkeye_Saver » Fri Jan 17, 2014 9:05 am

My dad isn't great with money, but not a spendthrift either. My mom is absolutely horrible with money. Neither of them ever really talked about it. About 5 years ago I was flipping through the radio waiting for my wife to get done shopping, when I stumbled on Dave Ramsey's show. It convinced us to get out of debt, which we did, and now we're much smarter with our money. On the investing side of things, it's all self taught stuff I picked up from books, articles, forums, etc.

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laughlinlvr
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Re: Who taught you about financial responsibility?

Post by laughlinlvr » Fri Jan 17, 2014 9:07 am

The School of Hard Knocks.

(I was once told that this was the school where they give you the exam first, followed by the lesson. I always liked that.)
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teacher5
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Re: Who taught you about financial responsibility?

Post by teacher5 » Fri Jan 17, 2014 9:09 am

I actually learned by self-study, because of interaction with a former work partner. Frequently there were just two of us in the office. I was 21, just out of college. He was in his mid 40's, and obviously well off financially. He frequently talked about stocks and investing. He would talk, without bragging, about being responsible with money. I was curious and asked a lot of questions. He pointed out some good things to read. My interest had been sparked! Coming out of college I did not know what a 401K or a mutual fund was! I asked our finance person at work, and she was quick (and firm) to "bark" (accurate descriptor) at me when I asked for "advice" on the 401K. "We don't give advice!" I was fortunate to work with someone who was very knowledgeable, and enjoyed sharing the knowledge. Luckily I liked reading, because he had me reading a lot.

Fast forward almost 30 years, and a big career change 20 years ago and I am very glad I took the time to learn, and continue to study. Now as a teacher I find most people I work with do not know much (anything) about finance, nor do they want to learn! (These are teachers!)

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Re: Who taught you about financial responsibility?

Post by mhc » Fri Jan 17, 2014 9:38 am

My parents are financially responsible, but they are very hands off. I was left to figure it out on my own.

It's really not too hard to figure out if you are sensitive to the negative feedback of making bad decisions.

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Re: Who taught you about financial responsibility?

Post by khale7 » Fri Jan 17, 2014 9:42 am

Parents were savers so it was probably an influence. Never spent money I didn't have i.e. always paid my CC off every month. The investing part (index funds & Vanguard) came from NPR (Sound Money - God Bless Chris Farrell :beer )

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Re: Who taught you about financial responsibility?

Post by cheese_breath » Fri Jan 17, 2014 10:09 am

My parents I suppose. Way back in my early years getting 25 cents allowance I learned if I wanted a little toy costing maybe 50 or 60 cents they weren't going to make up the difference. I had to save up my quarter allowances until I had enough to buy it myself. I've always been a good saver and except for major purchases such as a house or car have always paid cash. (I also pay cash for my cars now.) Unfortunately even though they taught me to save my parents never taught me about investing. I had to learn that on my own.
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Re: Who taught you about financial responsibility?

Post by mevertsen » Fri Jan 17, 2014 10:11 am

I was never really taught financial responsibility. I always remember my parents having trouble with money, living paycheck to paycheck, having trouble paying some bills, etc, etc. I started down that path myself, and am now finally on a plan to break that cycle. It has been a long hard road, but I hope that I can pass on positive spending habits to our daughter.

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Tycoon
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Re: Who taught you about financial responsibility?

Post by Tycoon » Fri Jan 17, 2014 10:16 am

At the ripe age of 14 my father walked into our living room one Saturday morning while I was blissfully watching cartoons and solemnly announced that I now had a job. Dad told me my new boss would pick me up at 5:30am the next morning and I was to do whatever this boss instructed me to do. For my troubles I would get paid $1/hr. As a bonus I would lose my weekends to my new vocation. His argument: “I’ll know where you are and I can keep tabs on you while I play golf. Plus, you’re making money instead of wasting time in front of the TV.”

Having to work 12 hour days on weekends for a buck an hour taught me everything I needed to know about working and money.
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staythecourse
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Re: Who taught you about financial responsibility?

Post by staythecourse » Fri Jan 17, 2014 10:29 am

Unfortunately, no one. My father always said when you get older I'll teach you the basics. That never happened. What did was watching my parents live a more simple life when they could have spent more, i.e. LBYM and always saving. So I probably still learned valuable lessons by watching and emulating. Guess what folks say is true it is just as important to set a good example as it is to lecture for kids to learn good habits.

Good luck.
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3Wood85
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Re: Who taught you about financial responsibility?

Post by 3Wood85 » Fri Jan 17, 2014 10:35 am

I learned by seeing my mother struggle with money and saving. I learned through her mistakes.

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Re: Who taught you about financial responsibility?

Post by wilpat » Fri Jan 17, 2014 10:42 am

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MathWizard
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Re: Who taught you about financial responsibility?

Post by MathWizard » Fri Jan 17, 2014 10:54 am

Self taught.

Of course, times were a little different with regards to credit when I was young, so
there was less of a chance of getting in trouble before you learned a few things.

Usury laws prevented interest rates above 18% .

You could go to jail for writing checks with insufficient funds.

If you were a student, you could not get a credit card or a charge account.
My wife was even denied a credit card (before we were married) when she had a full time job
because her pay was not high enough.

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Re: Who taught you about financial responsibility?

Post by Fallible » Fri Jan 17, 2014 11:17 am

You're right, there have been other similar threads on this subject, but it's always a good one. I mostly absorbed the basic family frugality rather than being taught, but surely some of that was in the genes. I remember having fairly definite thoughts about and conservative approaches to money when playing Monopoly at age 8 and up. (I now think that was my risk tolerance beginning to reveal itself.) And I also had an interest in finances that went beyond the family's interest in it, so that led to reading up on the subject. Still, I failed to save regularly until my early 30s, which was my fault. But I often think that if someone had taken time to teach me about money and saving when I was a kid, I would've saved earlier.
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Re: Who taught you about financial responsibility?

Post by DVMResident » Fri Jan 17, 2014 11:41 am

Two places: my parents and this board

My folks modeled LBYM, though I didn't recognize it until I reached adulthood. My father was a successful lawyer. My parents drove old cars into the ground (always "making one more repair than made sense"-Dad), didn't own much in material goods*, and never showed their wealth. They did spend a lot on education for the children and you to work hard (more focus on the process than the grades). Put 4 kids through college plus grad/professional school (minus the youngest, who is finishing undergrad).

* One friend walked into the house and asked "were your parents robbed recently?" :shock: because dinner was being served on a folding table (which we've had for 10+ years and worked fine).

Also, they're still married! 30 years and going strong.

All the kids have solid jobs (expect the youngest in undergrad), LBYM, and have no debt outside of mortgages and spousal student loans.

This board: LBYM was easy. Everything else financial I learned here: saving rates, investing, home ownership, debt, and taxes.
My siblings and the occasional friend who asks are leaning from me-though I mostly point them towards the wiki.

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Re: Who taught you about financial responsibility?

Post by bungalow10 » Fri Jan 17, 2014 11:57 am

wander wrote:
robotobor wrote:Did your parents teach you how to manage money properly? I'm sure this question was posted on this forum before so please excuse me for repeating. I'm really curious because my parents never properly took the time to teach me financial responsibility. That being said, their reckless behavior with money inadvertently taught me not to emulate them. Would you care to share some of the lessons your parents or grandparents taught you? If not family, perhaps a friend or a mentor?

Thank you! :D
Although my parents never taught me how to manage money, their lifestyle taught me indirectly. I am frugal because of them. When I have too much money in checking/saving accounts doing nothing, I think about making it work for me.
+1 My dad has given me investment advice, but aside from "save as much as you can in tax deferred accounts" I've found the Bogle advice is better.

My parents always lived below their means and that has been an very valuable lesson to me. I hope I can teach my kids that same lesson - I think it might be more challenging for me and my kids because we do make more than my parents ever did and my kids already have more of everything than I ever had growing up. I need to find a balance.
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Re: Who taught you about financial responsibility?

Post by Dulocracy » Fri Jan 17, 2014 12:10 pm

I concur with DVMREesident.

Parents and this board. My parents taught me about saving money from a young age. I got the Boy Scout merit badge on personal finance at their insistence. I had to track how much money I spent and how much I took in through a ledger. They made sure to make me feel proud whenever I saved more than I spent. Things like the weekly scout dues of $0.50 were carefully written in an old fashioned ledger book of my own. This led to a frugal existence in college. I bought deodorant in bulk when it was on sale. I did not spend money frivolously. I kept the bills down in the apartment. I got part time and summer jobs. Without the lessons I learned from them about living frugally, I would not have gotten through undergrad, law school, and the bar exam with only $500 in debt. (I failed to plan for the costs of the bar exam. Largely, this was getting a room at the Holiday Inn Express in order to make sure I got a restful night's sleep on the two nights before the most important exam of my life.)

Unfortunately, I was not taught to "pay yourself first." I re-invested every penny into building a law firm larger and larger. I did not put anything into retirement until the firm was large enough to offer a retirement plan to all employees. Since my grandfather (born in 1900) did not trust bankers, brokers, or stock, he taught my father to invest only in land. I was never taught about investing in stock. It was not until I had a few years worth of investing (wherein my retirement was 100% Dave Ramsey) that I really started to research it. Now, at 36, I am 90% boglehead. Rick Ferri and Larry Swedroe are my investing gods. Reasons I am not 100% boglehead: I still take money from personal finances to "loan" to the business at 0% interest to grow the firm, and the Bond portion of my portfolio with my wife is so low, many would not consider it to be existent. We do plan on increasing our non-stock portion of the portfolio through backdoor ROTHs this year, however, which should put is in more of a boglehead position.
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FelixTheCat
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Re: Who taught you about financial responsibility?

Post by FelixTheCat » Fri Jan 17, 2014 12:53 pm

My Mom told me to save early and save often. I wish I would've listened when I was young.

A Dean Witter broker that took all my profits with front-loaded funds AND a Financial Planner that lost 75% of my traditional IRA taught me to do my own research.
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jodydavis
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Re: Who taught you about financial responsibility?

Post by jodydavis » Fri Jan 17, 2014 1:04 pm

Not from my parents directly. They were very frugal immigrants, so I learned indirectly to be careful about spending. But being lower middle-class, they never had much savings initially, so I had no understanding at all of investing. Instead, two sources: (1) experience; and (2) books.

(1) experience - right after college, got my first full-time job in NYC. Made the mistake of running a credit card balance. Learned the hard way exactly how difficult it is to pay off interest. After finally paying it all off, vowed no more.

(2) books - after law school, started to accrue savings, but had no idea what to do with it or even how to think about it. A friend bought me "Mutual Funds for Dummies," which made a huge difference. Once I had some idea of what I was saving for (i.e. retirement, home, etc.), everything began to fall into place.

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Re: Who taught you about financial responsibility?

Post by investingdad » Fri Jan 17, 2014 1:09 pm

Both my parents have always lived according to what they could afford. Growing up they always said, don't buy what you can't afford.

My dad, however, is that one that pushed me to invest my money in mutual funds after I graduated from college.

But those sorts of things can only do so much for a person, you have to some other motivation. A lot of the motivation for me was simply looking at my extended family (uncles, cousins, etc) and realizing I didn't want to take their paths to dead end jobs, stretching pennies, etc. Sometimes folks making bad choices provide motivation to do the opposite. Did for me.

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Re: Who taught you about financial responsibility?

Post by jasc15 » Fri Jan 17, 2014 1:52 pm

Self-taught, I guess, but I'm sure there are specific interactions which I can't remember that helped educate me along the way. I was also motivated by not doing what my parents did. They should be 23 years into their 30 year mortgage, but have refinanced so many times (adding car notes, and other debt along the way) that I think they are only a few years into yet another 30 year term. We never did without, but they were also never spendthrifts. I simply don't know where their money goes. In reaction, I keep my life simple with few bills and financial obligations, and have over the past 2 years taken a much better hold of my financial future from reading this forum and other internet sources on the subject.

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swimirvine
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Re: Who taught you about financial responsibility?

Post by swimirvine » Fri Jan 17, 2014 2:34 pm

Self-taught
Last edited by swimirvine on Fri Jan 17, 2014 3:27 pm, edited 1 time in total.
The way I invest my money is not the right way to invest, it's the right way for ME to invest.

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Clark & Addison
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Re: Who taught you about financial responsibility?

Post by Clark & Addison » Fri Jan 17, 2014 2:47 pm

Mainly myself.

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SteveNet
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Re: Who taught you about financial responsibility?

Post by SteveNet » Fri Jan 17, 2014 2:53 pm

No one specifically,
Parents and Grand Parents abhorred the stock market (memories of 1929) An indefinite layoff in 1982 (lasted 2.5 yrs) 2 weeks after buying my first home, Baby on the way, 3 jobs to make ends meet (almost)... I guess that sort of 'instilled' financial responsibility thereafter.
Being frugal is hard to learn, but once learned is hard to stop.

cherijoh
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Re: Who taught you about financial responsibility?

Post by cherijoh » Fri Jan 17, 2014 3:01 pm

My parents (especially my mother) were frugal with money and tried to avoid debt. I started babysitting in the 7th grade and that's when I opened up a passbook savings account. I also got savings bonds as gifts from relatives as I was growing up. The first time I recall specifically discussing finances with my parents was when I was ready to apply to college and we discussed what was affordable. I don't remember any discussion about getting a loan for college, only potential scholarships - of course tuition when I started was $600/semester! My parents paid for it along with room & board. I was responsible for books and walking-around money. After my first semester I always had a part-time job on campus (< 10 hrs/week) and worked during the summers.

My parents were strictly savers, not investors. I learned about investing on my own through reading. The ability to invest in a 401k (and get 100% matching on the first 5%) spurred my interest in learning about mutual funds. A few years later, my father actually came to me for advice on this subject.

Justinbc6
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Re: Who taught you about financial responsibility?

Post by Justinbc6 » Fri Jan 17, 2014 3:05 pm

I learned from my Dad to be frugal and to pay debts on time. His passing indirectly made me interested in investing and I have learned about that on my own, through books and this website. Now I am trying to teach, or at least point ppl close to me in the right direction and make them realize that saving for retirement is a major issue.

SunnySeattle
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Re: Who taught you about financial responsibility?

Post by SunnySeattle » Fri Jan 17, 2014 4:06 pm

Mostly self taught and from observing family. I've only ever had conversations with my sibling and DH about investing. Dad taught me to be debt averse, to pay off credit cards each month, and gave me the gift of a fully funded college education with no loans. DH is not as frugal (he likes his cars) but I hold the purse strings so it works out ok :) . My grandparents retired at 39 (coast guard pension), never invested, and lived very frugally. My parents and in-laws are not so frugal and still have mortgages as they approach their 70s, but they will live just fine on pensions and/or SS in retirement.

Mine is the first generation to 'need' to learn about investing for retirement. Being self taught feels like a requirement in order to save enough for retirement. But how many regular-Joe's have the time/energy to learn and do what's necessary to save for retirement? Not many I suspect given the savings/retirement fund poll numbers out there. Financial education should be compulsory subject in pubic schools.

Sunny

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Re: Who taught you about financial responsibility?

Post by ddunca1944 » Fri Jan 17, 2014 4:37 pm

laughlinlvr wrote:The School of Hard Knocks.

(I was once told that this was the school where they give you the exam first, followed by the lesson. I always liked that.)

+1

I learned nothing about money from my family. It was always "God will provide".... I seemed to be a saver even as a child; to the point of hoarding any cash I received because I never knew when I'd receive more (no allowance). As soon as I was old enough to earn money babysitting I did so at every opportunity. As a young, naive, ignorant adult, I made so many classic mistakes, but I did learn from them.

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tylerdurden
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Re: Who taught you about financial responsibility?

Post by tylerdurden » Fri Jan 17, 2014 10:14 pm

My dad taught me the basics of financial responsibility: being frugal, saving money, and negotiating like hell when buying cars. I am self-taught when it comes to investing, and now try to return the favor to my dad with my experience and advice.
"The things you own end up owning you." -TD

bhead33
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Re: Who taught you about financial responsibility?

Post by bhead33 » Fri Jan 17, 2014 10:59 pm

Being almost penniless in undergraduate and graduate school were the best teachers. Never looked back after getting my second job and now am doing well.

Texas hold em71
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Re: Who taught you about financial responsibility?

Post by Texas hold em71 » Sat Jan 18, 2014 12:30 am

Financial responsibility? Lots of good examples in my life and lots of bad ones too.

Investing and Personal Finance? Bottom Line, Money, Scott Burns, Dave Ramsey, Bogleheads, one or two good professors in school, even those horrible Saturday afternoon radio shows. I have always read a lot not necessarily acting on it, but learning from all of it in some way even if it was making sure I could articulate why I did not agree with what I was reading or hearing.

goblue100
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Re: Who taught you about financial responsibility?

Post by goblue100 » Sat Jan 18, 2014 12:54 am

My parents were poor and never owned any type of investment. They did open me an Old Kent Bank account to put my birthday money in, paid 5 1/4% interest and no fees. I loved going to the bank and have them print my interest in the little blue ledger. Ah, the good old days.

As far as starting investing at a fairly young age, I got a job that had a 401k, I believe right after someone figured out the loop hole. That made me seek out information from Money magazine, I also give some credit to Charles Givens. His book Wealth without risk had a lot of good ideas in it. Too bad his organization was run by crooks.
Some people are immune to good advice. - Saul Goodman

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Re: Who taught you about financial responsibility?

Post by sschullo » Sat Jan 18, 2014 1:15 am

wander wrote:
robotobor wrote:Did your parents teach you how to manage money properly? I'm sure this question was posted on this forum before so please excuse me for repeating. I'm really curious because my parents never properly took the time to teach me financial responsibility. That being said, their reckless behavior with money inadvertently taught me not to emulate them. Would you care to share some of the lessons your parents or grandparents taught you? If not family, perhaps a friend or a mentor?

Thank you! :D
Although my parents never taught me how to manage money, their lifestyle taught me indirectly. I am frugal because of them. When I have too much money in checking/saving accounts doing nothing, I think about making it work for me.
+ 1
Public School K-12 Educators: "Ask NOT what your annuity sales person can do for you, ask what you can do to be a Do-It-Yourselfer (DIY)."

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Robert T
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Re: Who taught you about financial responsibility?

Post by Robert T » Sat Jan 18, 2014 6:24 am

.
Scarcity - early in life.
.

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obgyn65
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Re: Who taught you about financial responsibility?

Post by obgyn65 » Sat Jan 18, 2014 8:03 am

No one. Only my HR Block tax person, a former colleague and here + the ER forum.
Last edited by obgyn65 on Sat Jan 18, 2014 9:44 am, edited 1 time in total.
"The two most important days in someone's life are the day that they are born and the day they discover why." -John Maxwell

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