Yahoo Finance I Grew Up With Frugal Parents: 7 Valuable Lessons They Taught Me About Saving Money
Growing up with frugal parents, I was often the kid who was teased for having secondhand clothes, not going on vacations, and bringing generic-branded food to school. However, now that I am an adult, I am very thankful for the valuable lessons my parents taught me about saving.
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It has shaped my views on money, spending, saving and finances in general. While many of my friends have struggled with debt or excessive consumerism, I have never had to face these issues.
Within this article, I’ll go through some of the valuable life lessons my frugal parents taught me about money.
Distinguishing Needs From Wants
Growing up with frugal parents taught me the valuable skill of distinguishing between my needs and wants. While my friends were often caught up in the latest trends and fads, my parents refused to buy every item I asked for. Instead, they emphasized the importance of prioritizing needs, like a new winter coat, over wants, like the newest toy.
This is something that I have carried through to my adulthood. Now, I try to focus on essential expenses and cut back on frivolous spending. This has helped me make informed financial decisions and avoid unnecessary debt.
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How To Budget
I also learned how to budget and the importance of budgeting. I observed my parents tracking what they spent and saved as a child. They were careful not to spend more than they could afford. If they had a goal, they saved towards it. This early exposure to budgeting taught me how to set my own clear financial goals and how to allocate resources according to those goals.
“Children in frugal households witness budgeting as a regular activity,” said Jake Claver, CEO of Syndicately. “This exposure naturally ingratiates the concept of budgeting in their daily lives. It becomes less of a chore and more of an integral part of their financial routine. By learning to allocate resources and plan expenses from a young age, children are better equipped to manage their finances effectively as adults.”
Delayed Gratification
Delayed gratification is a lesson I was more reluctant to learn as a child but one I am now thankful for as an adult. When there was something that I wanted to buy, my parents encouraged me to wait and to think about the purchase and what it would mean in terms of longevity, monetary value, and the value I placed on the item. They then encouraged me to save my money and if I still wanted to purchase the item later, I could.
This lesson has played an important role in resisting today’s instant gratification culture. Whether saving for a significant purchase or planning for the future, the ability to delay gratification has been very helpful to me as an adult.
Michael Lynch, CPA and founder of OurCampfireUnplugged.com, also teaches his kids the power of delayed gratification. “Saving money isn’t about saying ‘no’ – it’s about saying ‘not yet.’ We encourage our kids to save for something they really want. It’s like planting a seed and watching it grow”
Have an Emergency Fund as a Financial Safety Net
While my parents were frugal in their spending, they were not frugal about saving, especially when it came to having an emergency fund. Life is unpredictable, and unexpected expenses will arise eventually. Having a cushion to fall back on can provide peace of mind. Having an emergency fund has also helped me avoid having to go into debt. Instead of having to put unexpected expenses on a credit card and paying interest, I used the money in my emergency fund when I needed it.
“Saving is often a central theme in frugal households,” said Claver. “Children learn early on that saving money isn’t just about putting aside a portion of their allowance or earnings; it’s about building a secure financial future. This lesson is pivotal, especially in today’s world where instant gratification is rampant. Understanding the power of compound interest and the security of an emergency fund are key lessons that benefit them throughout their lives.”
Shop Secondhand When Possible
There can be some stigma around buying secondhand items, especially when all of your friends get brand-new clothes and toys as a kid. However, my parents always shopped in thrift stores and other secondhand shops.
Even though I might have resented it as a kid, I now appreciate the appeal of shopping secondhand. Plus, buying secondhand is better for the environment. I create less waste and save money. It is a win-win for me.
Avoid Debt
My parents viewed debt as something that stood in the way of financial freedom. They always tried not to spend more than they earned. They didn’t even use credit cards and paid for everything in cash.
While I use credit cards responsibly as an adult today, I follow their advice when it comes to avoiding debt if possible.
Negotiate When Possible
Negotiation can be intimidating to many people. Thankfully, I learned how to negotiate from watching my parents do it frequently growing up.
They would often bargain for a better price on an item, especially when they felt that they were being overcharged. It didn’t always work, but oftentimes it did. Whenever the opportunity arises, I try to negotiate in a polite and respectful manner.
The Bottom Line
Growing up with frugal parents was a gift, even if I didn’t see it at the time. The lessons they taught me about prioritizing needs over wants, budgeting, delayed gratification, having an emergency fund, shopping secondhand, avoiding debt, and negotiating have shaped my financial philosophy.
My parents’ lessons have allowed me to survive and even thrive financially.
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