My name is Paul, my parents both passed away when I was 5, so I ended up living with my grandfather.
My grandfather has been my hero growing up and the one that taught me everything I should know. He was my father, my grandfather and closest friend, someone I love and cherish.
As you can guess, living with the ‘elderly’-my grandfather and his friends- allowed me to learn a lot about their ways of thinking and get some very valuable money lessons as well. I like to believe that every day was a personal finance class growing up.
Of all the money lessons he taught me, some stand out more than others, of course. Here are the money values I still go by, after all these years later.
Pay With Cash
Looking back, I recall my grandfather always using cash. In fact, he did not even own a credit card. It was not that he couldn’t get one, he just decided not to. He said if he could not pay for something with cash, then we did not need it.
And though he was not rich, when he retired, he lived comfortably. he had been wise enough with his spending that he was able to enjoy his retirement.
Don’t replace working items
My grandfather had to use his stuff until it broke down beyond repair mainly because he couldn’t purchase new ones immediately. Growing up, I realized there’s also another good reason not to go crazy anytime a company releases a new ‘version’: it’s a money-drain.
Save for a Rainy Day
Nowadays, I don’t call my savings a rainy-day fund but an emergency fund. But the idea is the same. My grandfather always saved a bit of every dollar he made “just in case.” This was money he never touched until he had to. For him, having money set aside provides peace of mind.
Pay the bills on time
My grandfather always said: “once you benefit from a service, you’re supposed to pay for it”. We would get the bills or find out what we need to pay and, as soon as he got his salary and later the pension, he would first pay the utilities. We were never late with a payment and, as I grew up and got my own bills, he would be pretty annoyed if I was late, even a day.
Though my grandfather is now gone, the values he taught me live on. I am now taking the time to teach these to my own children. I hope that they, too, pass them along to their own kids someday. The 1940s may be in the past, but the lessons learned during that time can still resonate and work today.
Times have changed but the importance of financial literacy have become more crucial, By starting young, and teaching your child about money, you can help them discover the relationship between earning money, spending it and saving it, giving them knowledge about the value currency holds.