Sometimes the most powerful lessons come early on in life. Maybe it’s because we are more impressionable at that age or maybe it’s just because we look back fondly upon those times. Regardless of the reason, those lessons stick with us for the rest of our lives and often shape who we are and how we perceive things.
Our early experiences with money are one of those things that can go a long way. If we learn the value of money and how to save, later in life we are a lot more likely to put a priority on sound money management. On the flipside, if we are allowed to squander money when we’re kids, guess what will probably come naturally to us when we’re older? Of course, things can change our views as we mature, but those early memories can have a bigger effect than you might think.
If you’ve read my about page, you’d know that I didn’t grow up in a very wealthy family. I don’t recall either of my parents splurging on anything expensive. As I wasn’t raised in a wealthy neighborhood, I didn’t see that within other families either. I didn’t even watch much tv to be exposed to celebrity lavishness. This upbringing probably played a big role in how tight I am with my money these days.
In my 20s I did spend like there was no tomorrow, but I suspect that was just an extension of my late teens. In my teens my mom’s business was thriving and my part time job there ensured I always had money to blow. I just wasn’t mature enough to fully appreciate things and reflect upon my childhood. Nor was I mature enough in my 20s when those habits continued. Now that I’m older and wiser, I see the light 
One of my fondest memories related to money was when I happened to find some cash outside the local convenience store. You can read about that story here. The initial excitement was pretty awesome, but I learned a valuable lesson about wasting money. In one day I had gone from rich (in my eyes anyway) to poor again with very little to show for it. I made the mistake of blowing the money on some unnecessary toys that didn’t last long at all. Talk about a lesson in not wasting money.
Since money wasn’t a big part of my childhood, I really can’t remember much else to do with money from when I was very young. Instead I learned how to be happy without relying on spending money. That may be why these days I am pretty content just hanging out at home or going out for a hike. It’s that kind of mindset that is helping me quickly catch up on my savings goals. Spending less can be even more important than earning more money.
Now for the fun part….your chance to win a Canon Rebel T4i DSLR camera! This giveaway is courtesy of my employer who offers a marketplace to sell a structured settlement. Thanks boss
To enter the contest please use the rafflecopter form below. The contest runs until the end of March 2013. For full rules, refer to the terms and conditions within the rafflecopter form. Be sure to share the contest on social media everyday for extra chances to win. Good luck!
What are some of your early money memories? Do you think it affected how you manage your finances now?
Good post Jeremy! I can relate to a certain extent as I did not grow up in a rich family and spent like crazy on credit cards when I got to college. The whole experience sort of ruined me on spending and explains much of my frugality today. Thanks for the awesome giveaway btw!
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I guess sometimes when you gain that extra freedom you do have to learn from mistakes to get back to your roots. And no problem about the giveaway.
Just like you, my past self spent like there was no tomorrow. In my teens, I had a part time summer job that earned me $5k. I spent it all on new clothes and eating out. It was gone by the end of August.
Oddly enough, my fondest money memory was back in 3rd grade. I would buy the really big bags of assorted candy (like the ones you find at Costco) and resell them individually to my classmates. I used my profits to buy more big bags of candy. Sadly, I can’t remember why I stopped…
That sounds like a pretty smart business venture for elementary school. I’d probably be eating too much of it myself to remain profitable. That’s some good willpower if you were able to keep the run going for a while.
With the exception of the stint in your 20′s, sounds like you have a solid financial foundation. I think I needed to have more structure when I was younger, but didn’t get it…or enough of a financial education. Never too late though and I’m learning. Thanks for the giveaway!
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Well that stint in my 20s lasted almost my entire 20s. So I feel like I’m playing catch up now too. People do make mistakes though. The trick is that you are able to recognize that as early as possible and develop better habits.
It’s funny how we can grow up not being around spending and then go a bit haywire.If the foundation is there, it usually comes back at some point. Thanks for putting together the giveaway.
Greed and jealousy are pretty natural human traits. So it only makes sense that many people will be tempted to spoil themselves when they feel they have the means to do so. It’s not like you’re thinking about retirement at that age.
Money played quite a few roles growing up. Mostly, it was about how we always spent too much, but also, it was pretty awesome when i got my first real paycheck. This giveaway is going to be awesome, and as someone with a regular T3, I am SUPER JELOUS of whomever wins this.
That first real paycheck it pretty sweet. I’m sure that would be a lot of people’s best early money memory. You just feel so satisfied having been able to earn that money on your own and suddenly the possibilities are endless.
My earliest money related memory is of my great-uncle’s convenience store. Whenever we stopped by, I was always allowed to take a candy bar. Then one day when I was 4, I was at the supermarket with my mother. On the way out the door, I grabbed a candybar and walked away with it, just like I did at “Uncle Georgie’s” When my mom realized what I did, she freaked out. So to teach me that things had to be paid for at the store, Uncle Georgie would pull a quarter out of the register and hand it to me to pay him for the candybar.
lol that’s pretty funny Ed. I could totally picture that. I guess your Uncle Georgie was spoiling you a little bit too much. Those free candy bars would make it good incentive to visit more often.
I was lucky enough to get a job in an electronics plant when I was 16 (it set the stage for a career in IT). I was stupid enough to blow every last cent of my paycheck on crap I can’t even remember now. That lasted until I joined the military and at least then I was able to get some financial discipline.
Interesting how your overall discipline was influenced by the military. I wonder if that is a common trend or was just an eye opener in your case.
I think it’s a pretty common trend. Most people change dramatically after just going through basic training. It’s as much a “maturity” thing as it is a “discipline” thing. Although I’m sure there are many that would disagree with me, I think we’d be a better society if everyone did a two year stint in the military.
Yeah I’m not sure if I agree with that. In theory it sounds good, but there are countries that do that very thing. If it was working well for them I’d think more countries would follow suit.
Great story Jeremy,
I agree that what we learn when we are young potentially could stick with us forever. Not everything we learn when we are young we want to take into adulthood but when we are young is an important time in our life. My mum said I never spent my money and I would hang on to it unless I had to spend it. Funny how the stories can make us laugh as we get older. I’m not that tight with my cash now but I did learn some good money lessons along the way. Cheers!
I consider myself selectively frugal. There are some areas where I’m milk every last cent out of something and others that I have no problem dropping big money. So I guess it’s sometimes that I really take my childhood lessons to heart.
My family was perpetually in debt, so I grew up thinking that debt was normal. It didn’t really occur to me to budget or save up for things until I was in my last year of university.
That makes a lot of sense that if your family was in that situation you would think it was rather normal. At least you figured it out while still in university and now years down the road.
Good post Jeremy! My family didn’t talk a whole lot about money either, so I count myself lucky that I didn’t grow up to be a spendthrift.
Talking about money while growing up might not be all that important. I’m sure they helped pass on some other responsibility traits that contributed to your current strong money management skills.
One of advantages of growing up with a modest lifestyle, is being used on budgeting your money–a habit of mine that is hard to break. Simple life with simple needs. I remember my husband asking me if I was born with a calculator in my hand, lol.
Those kinds of habits do stick with you long term, especially when learned at an impressionable age and from people you look up to.