Father's Day is Sunday, and it has me thinking about how I owe so much in my life to my dad. I could devote a whole post about that, but instead, I will just stick with saying I am thankful that he has passed down many important money lessons to me throughout my life.
Here is some of the financial wisdom I have gleaned from my dad:
- He is diligent about saving and investing, but he also knows how to enjoy life. He adores travel, so he goes on trips as often as he wants to, as long as all of his other financial bases are covered. He finds that perfect balance, which I also aim to achieve.
- He understands the importance of higher education. My mom and dad started a college fund for me when I was a baby. It compounded over time and ended up being enough to cover my education at a state university. Not having to leave school with the burden of student loan debt is a gift I cannot thank him for enough. If I have a kid, I will also begin saving for college early on.
- He doesn't use credit cards casually and made it clear to me that it is unwise to buy something you can't afford. I also work on using major discretion with credit.
- He thinks ahead. When I was in high school, he decided to trade his car in for something less expensive to maintain. It was a nice car, and I asked him if I could have it instead of mine. I was bummed when he said no, until he explained that replacement parts for that car were extremely expensive. The power windows had already broken several times, and the parts and repair jobs were not cheap. He helped me realize that it's not prudent to throw money into something that's going to be a terrible investment just to look cool.
- He's an entrepreneur. He has successfully worked for himself his whole life. I admire the job he has done at creating his own business, and perhaps one day I will do the same.
Did your dad or other father figure pass along any lasting money lessons to you? Read on for more great money lessons below in some of my favorite personal finance blog posts from the past week, several of which talk about passing money lessons on to kids.
1. Len Penzo lists nine money lessons that he thinks all dads should be sure to pass down to their children.
2. Bargaineering adds additional advice on teaching money management to kids, including making sure that you aren't overburdening them with too much information.
3. Credit, Eh? reveals 10 financial lessons that all kids will greatly benefit from learning.
4. Money Smart Life weighs when it's wisest to pay off debt and when it's time to invest instead.
5. The average credit card debt in America is not pretty. Deliver Away Debt explains how you can avoid being average with your credit card debt.
6. Couple Money offers advice on how to handle marrying into debt that your spouse carries and whether you should combine finances or keep them separate.
7. High gas prices are still enough to make us all want to whip out our credit cards. Retire by 40 explains the benefits of sharing a car with your spouse and how much he and his wife saved by making this lifestyle change.
8. As a bit of an exercise nut, I was intrigued by a post on Studenomics about five ways your fitness habits can affect your finances.
9. In light of a recent data breach from Citi, Free From Broke discusses the steps you can take to protect yourself from being a victim in these types of situations.