8 Childhood Money Habits That Are Keeping You from Getting Rich
Many of us grew up with certain money beliefs that often accompany us into adulthood. While we may have picked up these tendencies by observing our parents, that doesn’t mean they’re all worth keeping.
I’m a Financial Advisor: Here’s the No. 1 Piece of Advice I Would Give My Younger Self
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Here are some more money habits from your younger years that might be keeping you from getting rich, according to experts.
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Not Monitoring What You Spend
“Not tracking your spending can hold you back from maximizing your wealth,” said Jake Hill, finance expert and CEO of DebtHammer Consolidation.
“If you are following your parents’ example of only having a rough idea of how much you spend on nonessentials each month, break this habit by keeping thorough records of each purchase you make,” he said. “You’ll likely be surprised by just how much money you really spend each month and be able to identify ways to cut back and improve your finances.”
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Not Valuing Savings
“One of the biggest money-related habits I see people have picked up in childhood that is holding them back is not seeing savings for what it is,” said Mandy McGowan, money expert and founder of Elevating Profits.
“I talk to a lot of people who have savings and then when a situation comes up requiring them to use the savings, they are frustrated,” she said. “(They have) almost a ‘what’s the point’ outlook on their savings rather than being grateful that the savings was there and able to be used for that situation.”
Celebrating Every Win With a Big Spend
Mafe Aclado, finance expert and general manager at Coupon Snake, says she often sees people reward themselves with extra cash to spend.
“The truth is, for most people, growing up, money has always been a form of reward or motivation for good behavior,” she said. “And this free money can be spent on anything ranging from candy to just about anything they can think of. However, today’s adults spend on expensive spa appointments, and luxurious clothes.”
Today, Aclado notes many practice this habit that is quite close to doom spending, as a means of celebrating an accomplishment or a success.
“The problem with this habit isn’t that spending on the things that make us happy is so much of a bad thing, but is in fact the frequency with which these not so little unbudgeted purchases or spends are made,” she said. “In my experience working with clients, I have learnt that the best kind of financial reward to gun for, is financial security. Hence why individuals must always ensure to break off this childhood money habit that spending money is the best way to reward and motivate oneself.”
Fear of Investing
“You know how sometimes people get a bit nervous about investing? It often goes back to not having much exposure or understanding about it when they were kids,” said Mikayla Reynolds, real estate investor and owner of Cash Offers.
She notes that if parents or caregivers don’t chat about how investing works, it can seem like this mysterious and risky thing.
“That fear tends to stick around, making it tough for grown-ups to consider investing as a way to grow their money,” she said.
Learning the basics, like how compound interest works and the different ways you can invest, she says, is like unlocking a door to a more financially secure future.
No Savings Culture
“Think about growing up without really learning the habit of saving money,” said Reynolds. “It’s like missing out on a financial safety net.”
If you’re not taught the importance of regularly setting aside some cash, she says handling unexpected expenses can become a real headache.
“Having a savings culture means you’re better prepared for life’s curveballs and can avoid falling into the stress of debt,” she said.
Instant Gratification Mentality
If kids are used to getting whatever they want immediately, it can be tricky for them to wait for things in adulthood, said Reynolds.
“You ever notice how some folks just want everything right now? That’s the instant gratification mentality, and it often starts in childhood,” she said.
She observes this can lead to impulsive spending, credit card debt, and not saving up for the future.
“It’s like learning to balance the joy of immediate wants with the satisfaction of saving for something special down the road.”
Fearing Money Discussions
“Imagine growing up in a house where talking about money is like tiptoeing around a taboo,” Reynolds said. “It can create this fear of dealing with money matters later on. But here’s the thing: open communication about finances is super important.”
Without those chats, she says people might avoid seeking advice or dealing with money challenges when they pop up.
“Overcoming the fear of talking about money means creating an environment where discussions about finances are normal, constructive, and just part of taking care of yourself,” she said.
Undefined Financial Goals
Experts note that setting financial goals is akin to having a roadmap for your money journey.
“But if you didn’t learn to set clear goals when you were younger, it’s like driving without a destination in mind,” Reynolds said.
Without those specific aims, she says it can be tough to figure out where your money should go and why.
“Creating a habit of setting clear, achievable goals is like giving your financial life a purpose, making it easier to save and spend wisely for the things that really matter to you,” she said.
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This article originally appeared on GOBankingRates.com: 8 Childhood Money Habits That Are Keeping You from Getting Rich