Millennial Money: Break Free of Your Parents' Money Patterns
BY: GREENPATH FINANCIAL WELLNESS
Excerpt from The Washington Post, Millennial Money: Break Free of your parents' money patterns.
You can likely thank (or blame) your parents for some aspects of how you turned
out. Maybe you have your mother's eyes or your dad's habit of chewing with your
How you manage money is
another thing you likely picked up from your parents — whether they intended
you to or not.
While nearly 90% of
parents believe it's important for their kids to grow up with good financial
habits, almost half don't know how to discuss money with their kids, according
to a 2019 survey of 1,000 parents conducted by Edelman Financial Engines, a
financial adviser firm. Further, 25% of respondents never or almost never talk
to their children about household finances, the survey found.
If your family avoided
financial topics, you may find yourself uncomfortable managing money and
unaware of the effect your parents had on your financial behavior. But part of
growing up is acknowledging what you learned from your parents — both good and
bad — and correcting course as needed.
To claim your financial
independence, define what your money goals are, understand how to achieve them
through daily actions, and focus on long-term financial freedom.
YOUR HISTORY AND YOUR IDEAL FUTURE
If you don't already,
track your money management for a month. Document your income, bills and
Now think about how your
parents managed money while you were growing up. Look for areas of overlap to
understand the money habits you learned. Did your parents carry loads of credit
card debt or run behind on bills? Maybe they were frugal savers. If you aren't
sure how your parents handled finances, ask them.
"I think having the money
conversation with your parents is important, especially if you come from a
household where money wasn't actively talked about," says Paul Golden, managing
director of communications at the nonprofit National Endowment for Financial
Education. "Ask about the challenges they dealt with and how they managed
think about where you want to be. "Put financial goals in perspective of life
goals," says Kristen Holt, CEO of GreenPath Financial Wellness, a credit
counseling and financial wellness organization. "Maybe you want to retire
early, or spend time writing a book, or spend time with kids when you have
them. What's the life that you want to have?"
TIP: Compare your money
history to the financial future you desire. If you dream about being a
homeowner, for example, but find that you aren't saving enough monthly to build
up a down payment, see how you can adjust your spending habits.
Continue here to read the entire article at The Washington Post
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